New Mother.co.uk - The One Stop Family Website

Having a baby is a huge lifestyle change. As a new parent, you'll want to provide your new child with everything they need, and that requires a new approach to your finances too. However, budgeting for the new addition to your family needn't be stressful - following a few simple guidelines can make those important changes to your budget much easier to make.

As a new parent, you may be entitled to some Government benefits to help cover the cost of bringing up your child. Furthermore, they may be available whether or not yours is a low-income household, so it is worth finding out which ones are available and making sure you take advantage of them.

Two of the most widely available ones are Child Benefit and Child Tax Credit. For example, Child Benefit is available to most parents, and doesn't take into account income or savings. It entitles you to £20.30 a week for your first or only child, and £13.40 more each week for each child you have thereafter.

Similarly, 9 out of 10 families with children (according to HM Revenue and Customs - HMRC) are entitled to Child Tax Credit, regardless of whether they are working or not.

However, these are only two of the possibilities, so it's important you have a look at all the available support and see what Government benefits you are entitled to.

Supporting a new baby makes managing your finances even more important.

Budgeting successfully means you can keep on top of how all your income is spent. You can use your previous bank statements to help you make a list of all your regular expenses (such as mortgage/rent) and make a realistic estimate of other variable outgoings such as food/phone bills. Subtracting the total from your income will give you a clear picture of how much money

you have left over to spend on things for your baby - such as toys, clothes, etc. - without making any significant changes to your budget.

Putting savings aside wherever possible is also an important part of controlling your finances. If you can put some money to one side at the end of every month after all your essential expenses have been covered, over time you could build up a substantial savings pot that can be dipped into whenever necessary. You can also save money on costs such as children's clothes and toys by seeing if friends or family with children have any old items you can re-use.

As your household budget will now be stretched to cover three people, it's also important to spend wisely. Taking advantage of special offers and using promotional vouchers when you go shopping can seriously reduce your food bills. Many supermarkets also offer loyalty cards that allow you to build up points, which can then earn you money off future purchases.

For extra tips on how to manage your money as a new parent, here is another useful guide.

It's not just the immediate cost of bringing up a new child that you have to take into account. Thinking about your child's financial security in the future is also important. If you can afford it, there are a number of ways you can save for your child's future.

One option is a Child Trust Fund, which is a tax-free savings account for children. Though there are several different types of Child Trust Fund, the principle is basically the same: you can make extra contributions of up to £1,200 each year to the fund, which your child can access once they're 18 years old.

Depending on when your child was born, HMRC could send you a voucher worth £50 or £250, which you can use to open the account.