Money For New Mums!

Are you a mum-to-be worried about making ends meet? Save money on all things baby-shaped - and get your hands on your free £190!

In the current economic mess, the prospect of having a baby is likely to be even more daunting than usual.

In fact, according to new website MoneyForMums, nearly a third (31%) of first time expectant mums are more scared about not having enough money for their baby than they are about physically giving birth.

What's more, less than half (46%) of mums have been able to save anything in preparation for parenthood. Worrying stuff.

Fortunately, there are plenty of things expectant mums can do to save money on all things baby-shaped. Here, I'm going to look at how you can cut your costs and claim what you're entitled to.

Claim your £190!

First of all, get your hands on something that's always welcome - free money!

From April 2009, you can get a one-off, tax-free payment of £190 from HMRC if you're a mum-to be who's at least 25 weeks pregnant. This is called a Health in Pregnancy Grant, and is designed to help you prepare financially for the birth of your child.

To qualify for the grant:

• Your due date needs to be on or after 6^th April 2009
• You need to have been given health advice from a midwife or doctor (one of them must fill in their part of the form and sign it before giving it to you).

A Health in Pregnancy Grant won't affect your tax credits or any other benefits. And unusually, it's not income-related, so everyone will get the same amount.

The government seems pretty keen to give away this money. You can even set up a free text message or email reminder to help you remember to claim when the time comes.

To find out more about this grant - and the other government benefits parents can claim - have a look at this Directgov webpage.

A helping hand

What are child tax credits? Where do I get childcare vouchers? What are my maternity rights? What should I be paying for childcare? As a new parent, these are just some of the financial questions you'll probably be asking for the first time.

In What Working Parents Need To Know, I looked at typical childcare costs, and outlined the benefits you might be entitled to. And in Working Parents: Know Your Rights, my colleague Harriet Meyer explained what to expect with regard to maternity and paternity leave.

If you want to find out about all this in more detail, have a good look at the MoneyForMums website. It covers every financial angle you can imagine, from benefits and work issues to how to plan for your baby in advance.

The website also has several very useful tools to help you understand what your situation is. This budget calculator, for example, helps you work out how having a child will affect your finances. And this benefits calculator should help you work out which ones you're eligible for.

You can even register to receive a newsletter, which will provide financial information and reminders through each stage of your pregnancy and early motherhood.

Just be aware that this website is backed by Child Trust Fund provider Family Investments, so when it comes to Child Trust Funds it may not be impartial!

Money saving tips

When it comes to bringing up baby, there are plenty of ways you can save money while still providing top-quality care. Here are some pointers:

Nappies: In a nutshell, it generally works out cheaper to use `real' (reuseable) nappies. Estimates suggest you could save up to £600 using them on your first child - and even more if you use them again on your other children.

However, not all reuseable nappies are created equal. To read more about this (including several helpful comments from Fool readers) have a look at my previous article Money Saving Tips For New Parents.

Feeding: If you're willing and able to breast feed, you could save hundreds. Bottle feeding - with all the formula and sterilisation equipment that comes with it - is a pricey option.

When your sprog gets a bit older, try making your own purées rather than buying them packaged (this way you'll know exactly what's in them, too!).

To make it easier, cook them up in bulk, then freeze them in small segments in an ice cube tray until you need them.

Childcare: Link up with friends who also have small children and form a childcare circle. Trading babysitting duties with each other will mean you save money - and you'll already know and trust your babysitter.

And the rest: When it comes to clothes, toys and equipment, babies really don't care what brand an item is, or whether it's new or secondhand.

Try to avoid `essential' lists made up by retailers with ulterior motives. Once you've worked out what you actually need, consider making up a present list and circulating it before your baby is born. This will mean you get the things you really need, rather than the same `adorable' baby jump suit from 14 different people!

Finally, check out freebie websites like Freecycle and SnaffleUp. People often give away excellent quality secondhand baby equipment on these sites - and all you need to do is pick it up!

Still feeling swamped?

If you're not sure what's what when it comes to babies, visit the excellent MumsNet website. Here you'll find reviews of baby equipment and advice covering every stage of your pregnancy.

There are also forums covering everything from the breast/bottle feeding debate to childbirth and baby names. So - if you have a baby question you need answered, this website is an excellent place to start!

Your child's future

If you're able to save for your children's future from day one, it will make a huge difference to them in later life. My colleague Neil Faulkner recently examined all your savings options in his excellent article, Saving For Children.

And if you're considering setting up a savings plan or Child Trust Fund for your little one, you can also order lots of free brochures here that should help you work out what's what.

Good luck!

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