Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever it's important to understand our money, but so many of us feel as if we don't have a handle on it – or worse, feel anxious and scared about money.
So each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will tell her easy tips on exactly how to tackle it. So, take a seat, and let’s talk about money…
To submit your own anonymous money diary and get top expert tips tailored to you, simply fill out the form at the bottom of this page. And don’t forget to join GLAMOUR’s new Facebook group, Money Matters, for more exclusive finance content.Ella* is a 33-year-old project manager currently living in West Hampstead. She earns 50k a year and is a single parent to two boys. She is currently spending a significant portion of her wage on childcare. She's expected to attend the office two or three days a week, and even when she's working from home, she needs someone else to keep an eye on the children so she can properly concentrate on work. Her ex-partner currently pays child support, but it doesn't feel like it's making much of an impact. She'd like some financial advice about how to make smart decisions to save money on childcare, as well as how she can start saving money to buy a houseHere, she shares her money diary…MY ACCOUNTS
Current account: £3,000
Savings account: £4,500
MY INCOMINGS
Annual salary pre-tax: £50,000
Annual salary post-tax: £37,198
Monthly wage pre-tax: £4,166.66
Monthly wage post-tax: £3,099.83
Other incoming payments: £4,000
MY OUTGOINGS
Rent/mortgage: £1,599
Bills: £400
Splurges: £2,100
Other: £800
Any student loan/credit cards/overdrafts etc: I'm still paying off my student loan, which comes directly from my salary.
MY MONEY THOUGHTS
My worst money habit: Late-night splurges on Net-A-Porter.
My biggest money worry: Not being able to afford a house.
My financial hopes for the future: Buying a one bedroom house for my children and me.
Current money mood: 😬👗👶
WHAT MONEY EXPERT ALICE TAPPER SAYS:
Expensive childcare
Childcare costs in the UK are eye-wateringly high, and with two kids, it can be a real stretch. You’ll need to look at your options locally but assuming you don’t have help from friends and family, have you considered a registered childminder or a live-in au pair? These are typically much more affordable than a day nursery or a nanny. An au-pair, on average, costs around £70 – £85 a week (this is known as ‘pocket money’, plus room and board), whilst a registered childminder costs around £118.3 a week per child. Of course, both are likely to be higher in London but make sure you’re making the most of the government support you’re entitled to as well – see this calculator.
Child support
You’ve not shared details about the child support arrangement you have and whether this is a voluntary arrangement, but if things are tight (and they will be getting trickier through winter) have you approached your ex-partner to discuss how else they might be able to support you? Depending on the complexity of your arrangement, I’d suggest either having a conversation or getting some legal advice. Here is a helpful guide.
Knowledge is power
On the question of the future – how to save and eventually buy a house. The good news is that you are in a pretty good financial position. By most standards, your child support payments are large and, in theory, should enable you to save up a good deposit. My first suggestion is to really look at your financial behaviours throughout the month. The whole ‘knowledge is power’ thing is real and never more so than with money. Set a financial date night with yourself, pour yourself a glass of something and take a look. Clever open-banking apps like Yolt, Cleo or Emma are great for showing you where your money is going and help you to stay conscious (and perhaps limit those Net-a-Porter splurges…)
Single problems
Whilst saving a deposit should be doable for you, a limitation of buying alone is that you can borrow significantly less. Assuming you have a decent credit history, you can usually borrow around 4.5 x your income. This is where doing what you can to maximise your income is important – is there scope for progression at your current workplace?
Get advice
My final suggestion is to get some advice from a mortgage broker. They will be able to advise on finding a lender that considers your child maintenance payments too. They’ll know which lenders to approach and how to maximise the amount you can borrow. Wishing you luck!
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