Financial checklist for new parents: protecting your family

In the first few months after birth, these tasks are most urgent. Update your will: if you do not have a will, make one immediately — your child's guardian and inheritance arrangements must be documented legally. Review life insurance: if you have life insurance, check it is adequate for your new family situation; if you do not have it, get quotes — term life insurance for a non-smoking 30-year-old can cost as little as £20-30 per month. Update your beneficiary designations: your workplace pension and any insurance policies should name your partner as beneficiary, and you should consider a trust arrangement for your child. Register the birth: you cannot claim Child Benefit until you register the birth, and Child Benefit also provides National Insurance credits.

Opening a savings account for your child is one of the most rewarding financial decisions you can make, and the earlier you start, the more time compound growth has to work. Junior ISA: you can open a Junior ISA (JISA) for your child, contributing up to £9,000 per year in 2026-27. This money is locked until your child turns 18, and all returns are tax-free. Child Trust Fund: if your child was born between September 2002 and January 2011, they may have a CTF that should be found and consolidated into a JISA if desired. Regular savings accounts: some banks offer children's savings accounts with competitive rates, suitable for smaller regular contributions. The key is to start — even £50 per month from birth to age 18 at 5% growth becomes over £20,000 by your child's 18th birthday.

Childcare is typically the largest new expense for families, and planning for it is essential. Tax-Free Childcare: for every £8 you spend on registered childcare, the Government adds £2 via Tax-Free Childcare accounts, up to £2,000 per child per year. Universal Credit childcare costs: if you are on Universal Credit, you can claim back up to 85% of childcare costs. Childcare vouchers (if you already receive them through your employer): these remain valid for existing claimants. Free childcare hours in England: eligible working parents can get 30 hours a week (38 weeks a year) from when their child is 9 months old, all 3-4 year olds get 15 hours, and some 2 year olds in lower-income families get 15 hours. Maximising free hours before paying for additional childcare significantly reduces costs. Consider whether one parent's income is largely consumed by childcare costs — in some cases, reducing hours or switching to a lower-paid but more family-friendly role makes financial sense.