Five useful financial tips for new parents

New parents have a lot to worry about and not a lot of time on their hands, so it is easy for them to forget about their finances. Taking care of your own and your child’s money at this time will have huge benefits in the long run, so it is worth remembering these five tips.

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1. Don’t overspend

As easy as it is to forget about your finances when you are new parents, it is also easy to overspend because you aren’t sure what you need or want the best you can afford. Before the baby arrives, ask friends and family with children what they couldn’t live without, then come up with a list of what you need and a budget you can afford.

2. Protection cover

No new parent wants to think negatively when they are bringing their new baby home, but they do need to think practically; for example, what would happen if one or both parents fell ill or lost their jobs? How would you pay the bills and take care of your family? Life assurance or critical illness cover are good options here, so give them serious consideration.

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3. Child benefit

While the rules for child benefit have changed, you should make a claim if you are eligible. Not only will this help you to buy the essentials you need to raise your child but also registering means non-working parents qualify for national insurance credits for any future state pension.

4. Start saving early

As soon as you can, start savings account for your child, even if you can only put a little aside each month. With the average cost of university currently standing at around £9,166 a year, it pays to start saving early in case your child wants to study for a degree. Interest-free junior ISAs can be a good option; alternatively, for more detailed advice, speak to a specialist who uses financial adviser software from a provider such as https://www.intelliflo.com/ to help you plan for the future.

5. Write a will

Not as many people write wills as they should; however, once you have children, having a legal record of what should happen to your child if they need a guardian or you and your partner are unmarried and separate is vital.