People need to identify where they can make savings in order to pay for important things such as childcare, one expert has said.
Kim Stephenson, financial psychologist and creator of Taming the Pound, highlighted that it is essential for families to determine what exactly it is they need.
"What can happen is that people fail to think [about] what is important, they keep things they don't really need - like the new car they only bought to impress the neighbours," she explained.
Ms Stephenson suggested that many households find they are paying interest on a large mortgage or credit card bill, which therefore gives them less disposable income to play with.
The problem is that many individuals do not prioritise and simply choose to live off debt, the expert added.
According to research by Save the Children and Daycare Trust, full-time nursery for a child under the age of two costs an average of £177 per week in the UK.