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Family Money Myths Busted

08/08/2012 13:19 | Updated 22 May 2015

Family money myths busted

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Gemma Johnson, mum of two and CEO at money saving website Myfamilyclub.co.uk tells us the truth behind family money myths...

Myth: Pet insurance is a waste of money

Pet insurance may seem like an optional extra but if you share your home with a furry friend it makes sense to protect yourself in case they fall ill or get hurt. Visiting the vets can put a huge dent in your pocket and if your beloved pet happens to contract a long running illness, the bills can really mount up.

It makes sense to protect your furry (or scaly) friend with a failsafe insurance plan. There are two main types of pet insurance policy: lifetime and annual. Lifetime policies are more expensive but the cover they provide is reinstated at the start of each year. This means that if your pet's illness is recurring, you can still claim the full vet fees as long as your policy is renewed every 12 months.

If you're more concerned with protecting your pet from sudden injury, an annual policy might be your best bet. You could claim a lump sum towards vet bills but take note that they won't pay out after the policy finishes so you have to remember to renew it.

Myth: Withdrawing cash with your credit card is fine

The beauty of a cash machine is that it's there whenever you need extra money, but this can also be a problem, leading to overspending. It may be a bit of plastic but you should be very wary of it.

Remember, if you use your credit card to withdraw money from the hole in the wall or to pay for purchases on holiday you might be hit with large fees.

Also, if you use your card to buy gift cards or gift vouchers you might get an extra charge as it could be counted as a withdrawal.

Myth: Buying is always better than renting

As house prices sky rocket upwards we still aim to own our homes and to reap the financial security it can bring. However it makes sense to remember that renting isn't always the most unattractive option. Buying a house may pay dividends in the future but in such a rocky financial climate that won't be guaranteed. Plus there are lots of upfront cost to consider including solicitor and survey fees, Stamp Duty and the added costs that you don't get as a rental tenant such as Service Charge and Ground Rent on flats.

For more money saving tips and discounts and deals on your family essentials, visit Myfamilyclub.co.uk/money.

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