New mums to be given financial advice

New mothers are set to be given financial advice from the Financial Services Authority (FSA).

The regulator's trial of money information packs including CD-ROMs was deemed a success and the kit is set to be made available to all new mums.

The packs cover topics such as child trust funds, maternity leave budgeting, state benefits, and how children can affect pension preparations.

There are also a series of calculators to help families understand the costs of raising a child and returning to work.

The trial found 89 per cent of parents-to-be said they benefited from the packs – especially areas highlighting benefit entitlements and those prompting them to think about saving and budgeting.

Of all parents, the most well off were least likely to use the packs, while younger parents-to-be and those in lower-income households found the information boosted their confidence in dealing with their finances.

With the cost of having baby ahead of them, 73 per cent of future parents had put measures in place to help them cope with a drop in income after reading the packs.

Some 71 per cent had taken positive steps such as cutting back on spending, paying off debts or increasing savings.

One mum-to-be said: "Financial documents look quite daunting and this doesn't. It's quite neat and I like the fact that it's broken down into sections. The colours are good."

Another said: "I understood everything I read. I got more information on maternity rights than I've ever had from my employer.”

The FSA Parent's Guide to Money is available online at the authority's website.