Managing finances as a foster carer

All foster parents receive an allowance from their fostering agency or local authority to cover basic expenses for their foster child. This includes school uniforms, books, clothes, food and educational resources.

However, you might be wondering how you can go about managing finances – particularly if there isn’t a second income for your household. Here are some tips from Beacon Fostering that will guide you on managing finances, covering various circumstances and family sizes.

Apps and spreadsheets

These are useful for keeping track of money entering and leaving a household, and how the money coming in is being spent on utilities, essentials and the like. There are mobile apps to help you do this, and Excel is a popular spreadsheet program used by many.

Taxes and discounts

Foster carers are classed as self-employed, which means that unlike conventional workers, they are solely responsible for filing their tax returns and sorting out their pension contributions.

They do not receive payment if they are not looking after children in need; however, there are tax breaks and benefits available to foster carers if they have been looking after a child for more than a year.

There are also discounts available for family activities if they are members of certain organisations, and it’s possible to get reductions on council tax too.

Saving money and stretching your budget further

Finding ways to save money is also useful for ensuring your allowance goes further. You could set an amount of your fostering allowance aside for savings to cover for when you aren’t fostering a child.

When buying clothes and furnishings for your foster child and their room, check out charity shops or online marketplaces. Plan meals to avoid food wastage and make use of your local libraries.