Tax time is here again and a new term's worth of paying for children's extra-curricular activities is looming. Add to this the bad economic outlook - do you need any more excuses to take stock of your finances?

As any financial counsellor will tell you, managing money is easy - it simply means not spending more than you earn. The problem is that very few of us actually ever do this. With a little bit of knowledge from the experts, a commitment to a budget and making the most of loose change, you'd be amazed at what a difference a few simple changes can make.

The main thing is to try to avoid the common mistakes most families make. According to Delia Rickard, ACT Regional Commissioner from the Australian Securities and Investment Commission (ASIC), the common mistakes families make are not budgeting, not having enough insurance and not talking about money with their kids.

1. If you don't take the time to watch every cent because, quite frankly, 'you have a life', perhaps it's time you took a few minutes to complete a financial health check to see how healthy your hip pocket really is: www.understandingmoney.gov.au/tools/Consumer/healthcheck.

2. Did you know the best tool for finding extra money is a budget? FIDO's online budget planner calculator at www.fido.gov.au can get you started.

3. If your financial circumstances have changed recently, you might now be entitled to some Centrelink payments that you were not previously entitled to. Go to the Centrelink website www.centrelink.com.au and search under 'payments' or choose the 'parents or guardians' option.

Centrelink doesn't just offer payments to eligible families, it also offers financial advice.

Centrelink's Financial Information Service is a free service available to anyone (you don't have to be a Centrelink customer). The phone number is 13 63 57.

4. Here's a big helping hand for families with school children that you may not know about - 50% back on items you have bought this year for your child's education.  

If you are eligible, you can claim the cost of computers, printers, USB flash drives, home Internet connections, computer software for educational use, school textbooks, other learning materials and a whole bunch more. You can find out if this applies to you at www.educationtaxrefund.gov.au/home.

5. Fortunately it is fashionable to be frugal at the moment, but even in tough times we still need to buy things. You may justify your spending in terms of helping the economy, but do shop around because right now it's a buyer's market and there are lots of bargains to be found.

The Department of Fair Trading has some great tips about buying goods and avoiding shonky sellers at www.fairtrading.nsw.gov.au/Consumers/Buying_goods. Also, if there is less cash around your house, it's a good idea to keep an open mind on the idea of pre-loved goods.

6. If you've lost your job or you see that you are going to have trouble paying the mortgage, the first thing to do is to contact your bank or credit union and let them know your situation.

Delia says that lots of families don't do this because they feel embarrassed or intimidated. Her advice is, "Don't be! You might think that this will alert them to your problems and you will be worse off, but this isn't the case."

She adds that the four major banks agreed on the way they will help borrowers experiencing financial hardship due to the recession. This now means that banks can offer:

• postponement of payments for up to 12 months
• a longer contract with lower repayments interest-only repayments for a short period of time
• fee waivers.

If you are worried about your financial future, consider contacting an independent financial counsellor to discuss your options. The Consumer Credit Legal Centre NSW offers a number of services to assist you with managing credit and debt. You can call 1800 808 488, which is the Credit and Debit Hotline from Monday to Friday 9.30 to 4.30.

7. Let's not get confused - there is a world of difference between financial planning and financial counselling.

Financial counselling services are free, and help people who are in financial difficulty. They are an independent and confidential service. They can help you manage a short-term crisis and plan to prevent a future one. To find a free financial counselling service near you, go to: www.financialcounsellors.asn.au.

Financial planning advice, on the other hand, is a professional service that will cost you money. Financial planners are less focused on helping people in financial difficulty. They can help you plan your financial future and make decisions about your money, especially at important turning points in your life, such as retirement, paying off a mortgage, or having children.

8. If you don't discuss money with your children, how will they learn to manage their own money? Delia believes it's never too early for children to learn about the value of money. "Children need to understand that money is a limited resource and does not simply materialise from holes in the wall or from credit cards," says Delia.

Delia suggests turning the pressure kids feel to have the latest mobile phone, iPod, etc, into an opportunity to encourage kids to plan budgets and manage their finances carefully according to their needs and wants, just like adults have to.