Below are some tips to help you fill out the spending section of the financial statement.
Household bills
If you pay gas and electricity quarterly, you will need to add your last four bills together and divide the total by 12 to give you a monthly amount. To get a weekly amount, divide the total by 52 instead. If you pay on a pre-payment meter, think about what you use in the winter and the summer, and average this out to get a monthly amount.
If you pay your TV licence annually, divide the cost by 52 for a weekly amount or by 12 for a monthly amount.
Insurance
This could include life, health, travel and home insurance. If you have car insurance or breakdown cover, you may want to record that spending separately under car costs. Make sure you don’t accidentally record the same spending twice in different parts of the financial statement. If you have health insurance, remember to check whether you can get a payout because you have cancer. Our financial guides can help you understand insurance. You can call them on 0808 808 00 00.
Food and drink
Add an extra figure for any special dietary needs, but you need to state a reason for these on the financial statement.
Lifestyle
You need to account for an amount for clothing, even if you have not bought any recently. £5 per person, per week is considered reasonable. If you’ve lost or gained weight, or if your body shape has changed, you could increase this amount. But make sure you explain the reason for the increased figure.
Children’s costs
This could include after-school clubs or school trips. It is a good idea to add a note about this on your financial statement if these expenses are particularly high.
Savings and investments
Include contributions you make to a personal pension scheme. If pension contributions are taken off from your salary and paid into a workplace pension, do not include anything here.
Remember, do not include any debt payments in the financial statement. You are still working out how much you can afford to pay your creditors.