We can't wait any longer: Tately, there's been a lot of talk about rising prices. In 2024, electricity prices jumped 25%, water costs surged 24%, groceries climbed 18%, and vacation prices ballooned by 18% – and that's just a partial list. In 2025, VAT is expected to increase, National Insurance contributions will grow, property taxes will rise by 5.3%, and more.
These price hikes underscore the ever-present need to manage the household budget. Budget management requires time, knowledge, perseverance, discipline, and the courage to look reality in the face, but also the involvement of family members. People aren't eager to deal with managing the family budget. Among women, the reluctance is even higher. The recommendation: don't give up and face it, because procrastination can have heavy prices (financial and otherwise), such as damage to family relationships, getting into large debts, and more.
Many ask if it's right to involve the children in the matter, and the answer is unequivocally yes. As a strategy, it's very important that from a young age they understand that "money doesn't grow on trees" and that there are many economic constraints.
So how do you approach the budget? The first step is gathering information. The sources of information are bank account statements, credit card statements, and recording cash expenses and income for items related to household expenses.
Comparing total income to total expenses each month is exactly where surprises often lurk (such as payments for past purchases that we spread out and forget to take into account), and it's important to understand that they have the potential for long-term implications.
Another step is looking at expenses by category and examining their share of total expenses.
