Guide to help expectant parents manage finances

WITH most “30-somethings” with children worse off compared to three years ago, the National Consumer Agency has launched a guide to help expectant parents manage their money.

Called Baby Steps, it is part of the NCA’s strategy to provide information to help educate specific consumer groups, at key life stages, by tailoring personal finance education material to their needs.

About four-out-of-10 people in their 30s, who have children, do not have a household budget. And just over half have made no financial provision for their retirement.

With the number of births increasing by 14% between 2006 and 2009, the NCA believes it is more important than ever for parents to budget and plan ahead for their children’s future.

“The best time to start this is before your baby is born, so you have time to prepare for the financial changes and can start to form good money habits which, in turn, you can pass to your children,” said NCA chief executive Ann Fitzgerald.

Baby Steps, a 60-page guide, is divided into three stages — planning your baby’s arrival; money matters when you have children and planning for your children’s future.

An information section includes a jargon buster and a list of useful contacts and websites, including the NCA’s personal finance website itsyourmoney.ie.

Baby Steps urges parents to complete a financial health check by listing what they spend every year; their sources of income and tax relief so that they will see if they are spending more than they are earning.

When it comes to spending on non-essential or luxury items, the NCA urges parents to be realistic.

“Don’t cut out all your extras because, if your budget is too tight, it will be harder to stick to,” the NCA advises.

The NCA has an economiser tool at economiser.ie — a quick and easy interactive tool designed to compare a family’s spending in four key areas with other households and then give helpful tips on how to save money.

It also contains a three-step guide for dealing with debt problems and advises parents where they can go if they have serious debt problems and, furthermore, how to deal with debt management companies.

Baby Steps will be available to download in pdf format from nca.ie while over 60,000 copies will be distributed to expectant mothers at their 12-week hospital appointments.