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Planning a family

A secure family future starts with small steps

The earlier you start your financial family planning the better and even saving a small amount now can make a huge difference when baby arrives, or when you start to think about childcare.

Before baby

You can't start too early when it comes to putting money aside to help you cope with the reduction in your household income. Work out how much money you'll need to live on taking into account any financial commitments you have, and any expenses you'll be saving while you're not working, like travel and shop-bought lunches. Look into the maternity policy at work, some companies only offer Statutory Maternity Pay (SMP), which is the legal minimum. Work out how much you can start to put away each month while you're still earning.

The early years

If you plan on taking more than a few months off work, returning on a part time basis, or not returning at all, you'll need to take action now. Check on benefits you may be entitled to, and if you have debts, try to get these paid off in advance, or talk to the companies you owe money to about reducing your payments. Most will be understanding of your situation and happy to work out a revised payment scheme. Sit down and work out how much you will have to live on as a family and plan where you can make savings now.

School and beyond

If you're thinking about private school or university, the earlier you start planning the better. If you're looking in the medium term, say three to five years or more, you may want to look at fixed-term investment products that can give you a higher return than a savings account. You should also make use of your Child Trust Fund voucher, a Government initiative to provide a savings account for every child born after 1 September 2002.

Regardless of what stage you're at, you'll find lots of help and guidance to set you on the path to regular saving and making the most of what's available to you. Discover more about your saving options, making use of your tax-free ISA allowance and any benefits you're entitled to.

Where next?

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