Although the scrapping of child benefits in households where a single parent earns more than £44,000 a year will not happen until 2013, this week's decision by Chancellor George Osborne will force many families to look more closely at where their money goes.
Any couple losing the benefit, says the Institute of Fiscal Studies, will need a pay rise of £2,975 to ensure they are no worse off.
But this controversial measure saves only £1 billion a year, suggesting bigger cutbacks are coming down the line.
Some households may try to earn more cash to fill the gap when a benefit goes, but using money more efficiently might well be a smarter approach to absorb the loss.
Kevin Mountford, head of banking at finance website moneysupermarket.com, reckons households need to get on top of their finances right now, ahead of the traditional Christmas spending spree.
He says: "Many people will fail to plan for Christmas and end up carrying funding problems into the New Year."
"Taking action now, rather than leaving it to the last minute, can help to ease financial pressures."
Here's a checklist to get a tighter grip on your money:
:: Keep saving
Saving is still a good idea, whatever Bank of England officials might say, and will generate steady income when rates eventually rise again.
Financial advisor Hargreaves Lansdown believes 10% of income should be saved consistently, although it thinks you have to save a percentage of income equivalent to half your age, over many years, to have much chance of a pension paying 50% to 66% of final income.
As far as short-term savings are concerned, always check the rate on your account to be sure it is competitive.
Current best buys include the AA Internet Extra (2.8%), Post Office Online Saver and Santander eSaver (both 2.75%), all on minimum £1 deposits.
Sainsbury's Bank has a new Fixed Rate Saver - limited issue, minimum £5,000 investment - at 3% for a year, while Santander's new Fixed Term Bonds start at 2.75% for 15 months (minimum £1 deposit).
:: Get a cashback credit card
It's worthwhile for disciplined spenders who pay off the outstanding balance each month to get a cashback credit card because they get something back each time they spend.
Moneysupermarket.com's current best buy, the AMEX Platinum Cashback credit card, gives consumers an extra 5% cashback for the first three months up to a maximum of £100.
:: Trim family food bills
Andrew Hagger, at moneynet.co.uk, thinks that planning and discipline can trim £10 to £35 per week off your weekly supermarket shop.
"Plan your meals for the next seven days," he says,
"Write all the ingredients you will need on your shopping list. Don't buy anything in the supermarket that isn't on the list, and don't go to expensive corner shops for other items."
Hagger also suggests a check of kitchen cupboards and freezers, where most of us have meals we've long forgotten about and will eventually have to throw away.
:: Take a detailed look at all spending
Patrick Connolly, financial advisor Chase de Vere, says: "We typically find we can reduce clients' spending without affecting their lifestyle, and improve returns on savings and investments.
"If people don't have a good understanding of where they are spending, we suggest they record all expenditure over a three-month period.
"They are surprised at how much money goes on non-essential areas like buying coffees or lunch, satellite TV costs or gym memberships."
:: Head off the impact of rising energy bills in 2011
Households should expect a squeeze on suppliers' net profit margins next spring, says the latest Ofgem quarterly market report, and Thomas Lyon, energy expert at uSwitch.com, is already predicting that price increases for consumers are likely soon after that.
"Households should take the warning on board, snap up a competitive energy deal, and take steps to control energy usage as we go into the winter," says Lyon.
The incentive to switch will become greater as suppliers become more competitive with the launch of new tariffs to attract customers.
EDF Energy has increased its welcome bonus to £100 for customers who switch to its Online S@ver Version 7 tariff for both gas and electricity by November 30.
Customers must also agree to pay by monthly direct debit, and their account is automatically credited with £100 on day one.
Mark Todd, director of energyhelpline.com, says: "Over 10 years, we expect to see bills rise by 50 to 100%, meaning the bill for the average home will rise from about £1,150 today to between £1,725 and £2,300 by 2020."
Todd reckons the EDF Energy offer is the cheapest deal for online users, saying: "The average householder would pay £967 in the first year, effectively £867 after the welcome bonus.
"That makes it significantly cheaper than its closest rival, the npower Sign Online 19 tariff, coming in at an average £890."
Although energyhelpline.com switches around 20,000 users a month to new suppliers, Todd believes the average household is paying £1,150 on energy bills, so it could save almost £300 in year one with the EDF Energy deal.
EDF Energy also offers free daily advice on cutting bills and reducing energy use to customers via Team Green Britain (www.teamgreenbritain.org).
E.ON Energy is also chasing customers by promising a £100 credit entitlement after 12 months, plus an extra 8% discount for dual users paying by monthly direct debit. There are no cancellation fees if customers switch to another provider and the offer runs until November 16.
:: Cut outstanding credit card debt as soon as you can
According to moneysupermarket.com, more than three million people make the minimum monthly repayment on cards each month, and one in seven card users say they have held debt on their card for more than five years, so the interest bill is huge.
The website says anybody paying the monthly minimum repayment on £1,000 borrowed at 18.13% APR would take 17 years to pay it off - paying total interest of £1,113, more than double the original sum borrowed.
:: Avoid the store card trap
The idea of discounts on Christmas gifts can be particularly tempting, but the interest rate on purchases is usually steep.
Using a reward card is a better alternative as it can offer a better rate and will still reward you for spending.
Better still is a credit card offering a 0% interest promotional deal on purchases. Moneynet.co.uk likes the Tesco card which is interest free for a market-leading 13 months.
:: Funding your holiday spending money
If you are jetting off to warmer climes or the ski slopes, buying travel money at the airport can cost you dear.
Prepaid cards from FairFX or CaxtonFX provide more spending power, as they have no purchase, withdrawal or foreign loading fees and can be topped up online or by phone.
According to International Currency Exchange (ICE), Britons heading for the eurozone can expect a 4% increase in spending power this winter, while others bound for Canada, Mauritius and Mexico will get appreciably less. The pound is down 11% against the Mexican peso in a year.
Joanna Williams, at ICE, says: "Ordering holiday money online generally guarantees the most competitive rates, and picking it up at the airport avoids postal costs.
"Our customers in the vicinity of Chelsea or Waterloo in London or the ICE bureaux in Glasgow and Edinburgh can take advantage of market-leading rates through our special voucher promotion and collect currency in-store."
:: Shop around for loans
Remember, many lenders often tighten their criteria on personal loans in the run up to Christmas, so it pays to shop around for the best deal.
Nationwide BS has cut its personal loan rate for its main FlexAccount customers to 7.5% APR on loans up to five years, between £7,500 and £14,999.
:: Go online to research prices
Avoid impulse purchases, and use comparison sites to find the best deals and an indication on availability.
Many online retailers offer web only deals and some offer free standard delivery. Also, keep your ears open for retailers starting their sales early and make the most of any special offers or BOGOF deals.
The internet also makes it easy to track down hundreds of vouchers and discount codes, listed by websites like www.moneysupermarket.com/vouchers or on retailers' own websites.
:: Information: E.ON Energy (0800 068 7870 and www.eonenergy.com/coins); ICE (0844 800 3974 and www.iceplc.com); EDF Energy (0800 404 7414 and www.edfenergy.com)
Poundnotes
:: My Home Finance is a new Government project which offers an alternative to people who can't ask High Street banks for a loan because of a poor credit rating.
The pilot scheme is being tested at 10 branches across the West Midlands in conjunction with the National Housing Federation and Royal Bank of Scotland.
Applicants must undertake a 45-minute interview to prove they have the capacity to repay loans.
The interest rate is 29.9%, reflecting higher admin costs due to in-depth customer appraisals and the monitoring of weekly repayments.
Andrew Hagger, at moneynet.co.uk, says: "My Home Finance is a cheaper and more attractive alternative to payday loans and unregulated loan sharks where interest costs can be crippling, particularly for those already on tight budgets."
:: Although the number of new borrowers is falling fast, Drew Wotherspoon, at leading mortgage broker John Charcol, confirms a dramatic 35% surge in remortgages in September.
"Fixed rates made up just 27.5% of business in September, with variable rates the most popular products by some distance," says Wotherspoon.
"With rates set to remain low for some time, consumers continue to avoid slightly more expensive fixed rates on the market."
Chasing remortgaging business, Nationwide BS fixes over two, three and five years start at 4.09% (up to 70% loan to value) with no product fee, no valuation or legal fees, and a booking fee (non-refundable) of just £99.
:: Small investors are backing big oil firms again, says Paul Inkster, head of product at Barclays Stockbrokers.
"Oil and gas stocks are certainly in vogue, and our clients have their fingers on the pulse when it comes to the oil, gas and mining sectors," he says.
"However, BP is not the only player to impress our clients. EnCore Oil was the most traded stock on October 4, when the company announced a major find of oil in the North Sea, leading to a 13% jump in its share price."
"EnCore Oil accounted for 6.8% of all trades on October 4, 70% of them purchases. Other high-octane trading levels were demonstrated in Gulf Keystone Petroleum, Rockhopper Exploration, Nighthawk Energy and Regal Petroleum, and we also saw huge interest in mining."
:: The cost of insuring your central heating boiler against breakdown has surged by an average 13% in the past year, says comparison service uSwitch.com, meaning a rise from £125 to £142.
The cheapest cover now costs £80 per year, against £67 in September 2009.
However, uSwitch.com thinks the cover is worth it; those who don't have it could find themselves paying up to £1,200 to replace the four key boiler parts, it says.
:: High five savers
Phone No Rate Account Period Deposit Interest paid
Birmingham Midshires 0845 603 2828 4.60% Fixed Rate Bond Five Year Bond (P) £1 Yly
Rothschild 0800 077 8555 4.60% (F) Fixed Rate Bank Deposit 01/09/15 (P) £20,000 Yly
Stroud & Swindon BS 08457 252423 2.90% 90 Day Notice 90 Days £1,000 Yly
Natwest www.natwest.com 2.89% e-Savings None £1 Mly
AA www.theAA.com 2.80% Internet Extra 3 None £1 Yly
:: Top five borrowers
Phone No Rate Period Max% Adv Fee Incentive
HSBC 0800 494999 2.19% for term 60% £99 Yes
First Direct 0845 610 0100 2.59% variable for term 65% £99 Yes
Principality BS 0845 045 0006 2.99% disc to 30/11/12 75% None Yes
Yorkshire BS 0845 120 0874 3.29% (F) to 30/11/12 75% £495 Yes
Market Harboro BS 01858 412250 3.45% for term 80% £495 Yes
Code:
*K- Operated by Internet, Telephone, or Post
*F - Fixed
*P - Operated by Post
*B - Operated by Post/Telephone
*T - Operated by Telephone
*W - Operated by Internet
*H - Operated by Internet/Telephone
*S - Available only to those aged 50 or over
*R - Available to those aged 60 and over.
:: Source: Money£acts - Tel: 01603 476 476 (All rates subject to change without notice).
