Babyworld members are tightening their belts according
to our poll. We asked babyworld members to reveal
how they have been affected by the credit crunch… and to pass on their
tips for managing.
- Hype or here for good?
- Rising food bills
- Fearsome fuel prices
- Ever-growing energy bills
- Back to work
- Letting go of the luxuries
- The proof is in the poll
- Top tips to save money
Hype or here for good?
According to daily news reports, it looks like the credit crunch is here
to stay, at least in the short term. Evidence from the Daily Telegraph
a couple of weeks ago pointed to no definite improvement in sight at least
for the foreseeable future. According to the newspaper, prices are rising
faster now than they have in the previous 16 years, prompting chancellor
Alistair Darling to admit that taxpayers were struggling to afford both
fuel and food.
But are all these gloomy forecasts hype or is the economic downturn here
to stay? Evidence from babyworld members suggests that they are
really feeling the financial strain, as Wendy reveals, ‘We are noticing
the rising prices and we have had to cut back on things. I’ve made a budget
and we have to stick to it: just simple things like eating out only once
a month, only spending £40 per month on petrol, etc. My shopping now has
to be kept under £80 per week, so I have to shop far more carefully.’
Rising food bills
Many people commented on the sudden increase in food bills just before
the full extent of the credit crunch appeared in the media. Recent reports
suggest that staples have risen astronomically from this time last year,
with butter going up by 65%, pasta by 86%, rice by 77% and mince beef
by 59%. Babyworld member Denise has definitely noticed the difference,
‘I used to feed my five kids on £70 a week but this week I paid nearly
£100 for mostly the same foods.’ Michelle agrees, ‘I used to be able to
spend around £50 a week for the three of us and even then sometimes have
stuff left over. It’s now an average of about £70 a week. I have changed
brands on a lot of things which has made a difference. I remember really
looking forward to my son coming out of nappies and kept thinking of the
saving we’d make each month on shopping but unfortunately because of rising
prices, we never noticed any saving at all.’
Fearsome fuel prices
The Real Cost of Living Index (RCLI) estimates that transport – including
fuel costs – has risen by 30% in the last year so it’s not surprising
that many babyworld members have been hit badly by sky-high petrol and
diesel increases. Mother-of-three Karlie explains: ‘Petrol is killing
us. James works the other end of Newport with no direct public transport
so he has to use the car. So it does about 16 miles a day. We will have
to sell the car because we wont be able to afford to tax it next year.
We will just have to get something smaller with a smaller engine.’
The same situation has happened to Cath, ‘We have downsized our diesel
people carrier and bought a small petrol car. My husband works in construction
and is our main breadwinner so I am worried for the future and his job.
For the moment we are just trying to be careful but it is a worrying time.’
Unfortunately for Sue, buying a more fuel-efficient car isn’t an option.
‘I changed jobs before Christmas with the thought we would be better off
but the fact that my mileage has gone up has meant we are as skint as
we were! My car is probably inefficient being an old banger but we can’t
afford to buy a more economical car.’
Ever-growing energy bills
The managing director of energy firm Centric Energy caused a bit of a
stir a couple of weeks ago by advising the general public to turn down
their thermostats and wear an extra jumper to try to avoid ‘potentially
significant’ energy rises. The RCLI has already revealed that utility
bills are up 11% on this time last year so is anyone in our community
being held to ransom by gas and electricity rates? Jane is certainly worried
by the prospect. ‘We are trying to use less electricity and gas. I haven’t
used the tumble dryer for ages although that will be more difficult in
the winter. We have also had a new boiler installed as the other one (inherited
from previous owners) was so inefficient.’
Back to work
Recent research has shown that families are more than £450 per year worse
off than this time last year, not an insignificant amount. How are babyworld members
managing with this drop in household income? Many, it seems, are returning
to work earlier than desired or planned to bring an extra monthly pay
packet home. ‘We could no longer afford to live on the one wage and as
a result I went back to work,’ says kjayne. ‘We got increasingly further
into the overdraft every month so I had to go back.’ Pinkmandie is in
the same boat, ‘I was hoping not to go back to work for a year to be with
my children but I have had to accept a job to start in September to cover
rising food and fuel costs. We live within our means and are careful but
can’t afford to live on one wage any more!’
Letting go of the luxuries
The Centre for Economics and Research stated that one consequence of
the economic downturn is that families might have to forego such luxuries
as holidays because the rise in prices across the board cannot be matched
by most pay increases. For those who are determined to get away somewhere
different for one or two weeks of the year, this means having to work
extra hours, as Wendy now does ‘just to be able to carry on having the
odd trip out or holiday.’ Kelly’s family have had to stop having a weekly
takeaway to afford a holiday but she’s still worried about the cost when
other financial demands are high. ‘We’ve stopped having takeaways and
I’m trying not to use the tumble dryer at all. We go away in August so
need to save for that, and have had to buy a new TV and washing machine
within two months.’
The proof is in the poll
We decided to
run a poll to see if there was any major way in which babyworld members
were trying to save money. Around 18% revealed that they no longer buy
luxuries, 14% have started buying cheaper brands, 6% aren’t going on holidays
(but no one’s spending less on holidays), 4% are driving their car less
and 2% are buying more things second-hand. However, the biggest single
group of respondent – at 36% – said they are doing all of the above. So
it seems as though most of our online community is feeling the effects
of the credit crunch and, for those who aren’t, they are being extra careful
to avoid being caught out later should the situation worsen. Hard days
may be ahead but our impression is that you’re a savvy lot who know how
to stretch your pound that little bit farther to ensure your families
still have a decent standard of living.
Top tips to save money
babyworld members share their top tips on how to save money. You never
know – one of these (or more) might work for you!
- ‘In the last year we’ve made some fortuitous choices, on environmental
rather than financial grounds, which have ended up saving us a small
fortune. We changed cars for a small and very efficient diesel which,
even with higher fuel costs, means our fuel bill is down about a third
on last year. And we have solar panels and a wood burner which means
we don’t have to worry about electricity or gas prices.’ Alison - ‘I’ve always shopped for food online as I hate supermarkets and it’s
much easier to keep watch on what you’re spending.’ Michelle - It used to cost me about £40 to fill the petrol tank up but it’s now
over £60. A tank lasts a month, but I’m trying to make it last a bit
longer now the prices have gone up. Our food shopping has gone up in
price a lot; I’m budgeting weekly now rather than just going shopping
and throwing things in.’ Kelly - ‘I am desperately trying to budget more and even selling some stuff
on eBay in the hope to get a few extra quid.’ Shelley - ‘I don’t find that shopping online helps. We shop with Sainsbury’s
and I find that they only tend to stock the organic and more expensive
items (that we buy) online whereas in store I can find the cheaper stuff.
It is actually cheaper for me to shop in store than it is online. Also,
I use the calculator on my phone to add up the total as I go along…
sounds silly I know and it takes a while but it’s worth it.’ Ellie - ‘We’ve started to buy in bulk as well and freeze a lot so we go shopping
less.’ kjayne - ‘ I drive more slowly than I used to and it definitely makes a difference
to my fuel bill – my petrol lasts longer’ divine
Where to next?
- Is
the credit crunch really as bad as it seems? Discuss, debate and
deliberate on our forum! - If you can’t make it as a millionaire, find
out how you can make your baby one! - Find
out how to cut the costs of family life. - Find value-for-money products in the babyworld
shop.
