Report investigates costs of child poverty

Figuring out the true cost of child poverty can be similar to trying to calculate all expenses in a personal budget.

08:01 23 July 2013

Certain aspects of our finances can be difficult to uncover if we aren’t used to keeping thorough track of everything we do and purchase. Even when we keep great records of costs, there can still be hidden costs or results that we might not anticipate.

A recent study of the child poverty in Scotland and other areas of the UK attempted to measure the costs involved with the issues resulting from poverty, as well as the direct financial effects. The same thing can be done in our personal financial situations to ensure that we’re looking at true expenses.

• Irregular expenses—monthly expenses are easy to remember, but there are irregular expenses which still should be account for in your financial planning. These might be such expenses as clothing, postage, parking fees, and quarterly or semi-annual expenses like membership fees.

 

• Entertainment—finds out what you spend on entertainment. Be sure to include monthly memberships, magazine subscriptions, and trips to the cinema, video rentals, theatre attendances, gaming systems, video game purchases, and all other types of entertainment. Keep track for a few months of how much of your financial expenses are for entertainment purposes and try setting your allowance based on that.

 

• Savings—consider savings a part of your expenses in order to build up a significant amount. If you consider it an expense, you’ll be more likely to adhere to it and less likely to use those funds for other purposes. This can enhance your financial situation quite a bit.

 

• Unexpected—no matter how well your budget and plan there are events which can undo even the best of plans and create financial chaos. If you plan for some of the smaller unexpected possibilities such as work expenses, replacing shoes, purchasing baggage, potlucks, or car repairs. Designating a certain amount can help offset costs and avoid further problems.