FSA supports new parents with money guide

by Gill Montia

Story link: FSA supports new parents with money guide

The Financial Services Authority (FSA) is to provide new parents with money advice packs that contain information on budgeting, benefits and the cost of childcare.

The Parent’s Guide to Money (PGM), which will be distributed by midwives to mothers in the early stages of pregnancy, will also contain information on maternity leave and Child Trust Funds.

The packs include a CD-Rom that helps to calculate how a family’s income and expenditure changes following the birth of a child, and the financial gains or losses to be expected from returning to work.

The scheme also aims to encourage families to save and make sure their offspring see the maximum benefits from Child Trust Funds.

Matthew Carter, savings director at Nationwide building society, has welcomed the move stating: “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 has put the PGM scheme through a number of successful trials and the packs will be distributed nationwide from this summer.