Single parent’s guide to saving money

Many parents save by reviewing small, regular costs such as:

• Mobile phone contracts (EE mobile phone contract, Vodafone UK pay-monthly contract, Three UK phone contract, Tesco Mobile or Sky Mobile contract)
• Unused subscriptions (Amazon Prime UK, Spotify subscription, The Times or The Scotsman digital subscription, Ancestry UK or Findmypast, LinkedIn Premium)
• Streaming services (Netflix UK, Amazon Prime Video, Disney+ UK, NOW TV / Sky Stream, MUBI, ITVX Premium, All 4+)
• Auto renewing apps (Apple iCloud storage, Google One, Strava Premium, Headspace or Calm, Duolingo Super, Fitbit Premium)

Checking these once or twice a year can sometimes free up £10–£30 a month.

Another approach is “pay yourself first”, when you move a small amount of money into your savings as soon as your wage or benefit payment comes in.

Reducing future costs can also protect your budget. You may be able to save money by:

• Looking at your energy usage and current tariffs.  You may be able to get a better deal than the one you’re on. Organisations like Home Energy Scotland give great tips to reduce energy bills
• Look at where you are spending on essentials like food and check if there may be any room for savings.  Using community pantries to access lower cost food options may be beneficial. You might find it useful to keep track of your shopping by making lists of what you need to buy beforehand and keeping receipts after.
• Are there any travel expenses that you could reduce?  For example, is there a regular car journey you take that you could reasonably walk instead? Small changes can make big savings.

Find out more about reducing your living costs by looking at our useful guide.

Start small and keep it realistic. Even £3–£5 a week can add up over time. There’s no expectation to save a fixed amount every month.

Only do what’s possible for your situation, but remember that consistency can be one of the biggest helps when trying to save up.

It’s important that your savings are kept somewhere safe and earn at least a small amount of interest over time.

Good options include:

• Local credit unions – Safe, low-cost and supportive of small, regular deposits. If you choose to save up with a credit union, you may be able to access other financial products over time such as loans and other accounts
• Bank accounts for saving – Some allow saving from as little as £1 a month and offer higher interest
• Junior ISAs – Useful for your children’s future savings, but usually best to look into once you’ve built a small emergency fund for yourself

Keeping savings in a separate account from your regular spending money can also help reduce the temptation to dip into them.

Focus on building a small emergency fund first.

A reasonable first goal is £100–£300, built up gradually. This can provide a buffer for essentials and reduce the need to rely on borrowing money for emergencies.

Some parents choose to put aside a small amount of income when they can, but this won’t be possible for everyone. Even if you cannot save yet, you may be able to in future, so understanding more about saving is really useful.

Regularly reviewing your budget (every few months, for example) is a good way to see what you are spending and where, where any issues may arise and what you may be able to start putting aside in savings.

You can open a Help to Save account if you:

• Are a UK resident on Universal Credit
• Earned £1 or more in your last monthly assessment period

You only need to meet the criteria when you apply. Once opened, you can keep the account for four years even if your circumstances change.

• Between £1 and £50 a month
• You don’t have to save every month

The government adds 50p for every £1 you save.

Bonuses are paid twice:

1. At the end of year 2, based on your highest balance in the first two years
2. At the end of year 4, based on your highest balance in years 3 and 4

Example:

• Saving £20 a month for one year (£240) would give you a £120 bonus
• If you saved £600 over two years, your year 2 bonus would be £300

This makes Help to Save far more rewarding than most standard savings accounts.

You can withdraw money whenever you need to, although this may reduce your bonus. The scheme works best if you can leave savings in place until the bonus points.

• The account lasts for 4 years
• At the end of year 4, the account closes and you keep all your savings plus any bonuses earned

No. Savings held in a Help to Save account do not count towards Universal Credit savings limits, even if your balance goes over £6,000. This protection lasts for the full four-year term.