Parenting Skills

Parent’s Guide to Managing Money for a New Baby




Having a baby is a major life change, and financial planning is key to staying in control. The Money Advice Service offers free and unbiased tips to help parents manage their budget effectively. Here are three easy ways to make the most of your money:


1. Check What You’re Entitled To

Claim money and benefits:
- Statutory Maternity Pay (SMP): Speak to your employer.
- If self-employed or on certain benefits: Contact Jobcentre Plus or Jobs and Benefits Office.

Get free dental care:
- Dental treatment is free while pregnant and until your baby is a year old, saving up to $204.

Free vitamins and vouchers:
- Low-income families or parents under 18 may qualify for Healthy Start vouchers. Ask your midwife or doctor.

Claim Child Benefit:
- Complete the form in your Bounty pack after registering the birth. Don’t delay, as late applications may lose money.

Helpful tool:
Check your full eligibility for benefits and entitlements at moneyadviceservice.org.uk/parents.


2. Work Out How Much You’ll Need to Spend

Understand baby costs:
- A newborn needs ~9 nappies daily, costing ~$50/month for disposables.

Use a baby costs calculator:
- Estimate your expenses and identify savings opportunities.

Budget effectively:
- Try the online budgeting and baby calculator to map your income and expenses.

Discuss finances:
- Talk openly with your partner, family, or friends about money management strategies.

Helpful tool:
Access budgeting tools at moneyadviceservice.org.uk/parents.


3. Secure Your Baby’s Future

Start saving early:
- Save $5/month from birth to 18 years to grow ~$1,000. Increase savings for better returns.

Consider life insurance:
- Protect your family with affordable life insurance options.

Make or update your will:
- Ensure your child is cared for by creating or reviewing your will.


Summing it up:

  1. Explore benefits and entitlements to maximize savings.
  2. Plan your budget using tools to understand baby-related expenses.
  3. Secure your child’s financial future with savings, insurance, and estate planning.

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