In a strategy to help new parents cope with the financial demands of raising a child all pregnant women will receive free financial advice.
New Mums-to-be are to be given information packs to advise them on money matters by the financial watchdog FSA (Financial Services Authority).
The Parent’s Guide to Money (PGM) will be distributed by midwives during the early stages of pregnancy. It contains information on benefit entitlements, tax credits, childcare costs as well as advice on budgeting.
The scheme is set to be launched nationwide this summer after successful trials in Tower Hamlets, Yorkshire and Humberside, Brighton and Blackburn. PGMs were distributed to the 1,500 expectant mothers through employers, children’s centers and to pregnant women directly.
70% of those who participated in the trial said the PGMs prompted them to take monetary action whilst 89% of participants said they found the information packs helpful, especially in highlighting the issues surrounding benefits and tax credits.
The pack also contains a CD Rom to assist people in calculating the financial loss or gain of returning to work and how their income and spending will change once the baby is born.
FSA spokesman Chris Pond said: "Our research suggests that a lot of people are confused and sometimes bewildered by the range of things they've got to think about."
As reported by the Guardian, this scheme is necessary amidst the financial oversights of new parents. Matthew Carter, Nationwide building society’s saving directors explained: "Latest figures from Revenue & Customs show that a fifth (21%) of child trust vouchers expire because parents fail to invest them within 12 months. And, even once the child trust fund is opened, 60% of funds do not see any further activity."
The FSA believes the guides can save families hundreds of pounds whilst easing anxiety over financial issues. An FSA spokeswoman said: "Talking to midwives, financial worries can actually be quite a big issue and can be quite distracting."
