Third of parents worried about their financial future

A third (33%) of parents with children under 18 say they’re terrified for their financial future with over a quarter (27%) likely to start a side hustle or second job to make ends meet according to research by Creditspring.

Over a fifth (22%) of parents will have to borrow in the next six months whilst a similar number (21%) believe they will have to increasingly rely on state benefits to survive.

Over one in ten (11%) parents are having to take time off work to look after their children during the school half term as they can’t afford holiday clubs or other activities.

Three in ten (30%) parents with children aged under 18 admit that this is the most financially unstable they’ve ever been.

A fifth (19%) of parents with children under 18 have turned to state benefits during the last year whilst 15% have sought support from debt advice charities.

These financial pressures are impacting half term plans – over one in ten (11%) parents are having to take time off work to look after their children during the school half term as they can’t afford holiday clubs or other activities and the same proportion reliant on family and friends to look after children. Almost a fifth (17%) note childcare during school holidays is getting increasingly expensive.

Half term is a particularly challenging time for family finances – 15% of parents say that increased costs of meals and clubs puts more of a strain on budgets during school holidays compared to term time.

Although more than one in ten (12%) parents say they can’t afford any activities for their children during half term many are concerned about the impact this has. 13% of parents feel their child misses out when they can’t afford to go to clubs during half term and other school holidays.

Previous research from Creditspring revealed the impact of back-to-school costs on families – with over half (52%) of parents unable to cover the cost of back-to-school items within their current income and four in ten (39%) are wholly reliant on credit to make these purchases. Nearly four in ten (37%) said they expected this spending to put them into debt.

Neil Kadagathur, CEO and Co-Founder of Creditspring, said “Although inflation has dipped, millions of families across the UK are yet to recover from the cost of living crisis and we know that pressure on family finances rises sharply during half term and other school holidays.

“Parents are forced to juggle work, childcare costs and days out in order to keep children happy and entertained when schools break up. Unfortunately, many family budgets simply cannot cope with any additional strain.

“People need to have access to safe, simple and affordable short-term credit options that will help them manage cashflow through expensive periods such as school holidays, without having a knock-on impact to their longer financial health.”