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As Parents’ Week gets under way, the Financial Services Authority (FSA) has begun the UK-wide distribution of the Parent’s Guide to Money, its practical and impartial resource for expectant parents designed to answer questions about their changing financial circumstances and to help them prepare for parenthood.

The guide has been developed and piloted in England with the help of parents and health professionals, such as midwives, and will be made available in Scotland, Wales and Northern Ireland by the end of the year.  The FSA hopes to reach 500,000 expectant parents across the UK this year, and 1.5 million by 2011.

Research has found that the cost of bringing up a child to the age of 18 can be well over £150,000, and becoming a parent is a time when people should be thinking about their finances and taking action if they need to.  However, the FSA has found that money is a subject that people often find difficult to talk about, even with close friends and family.  People often find it difficult to grasp the importance of money matters, don’t understand jargon, and can be unsure of where to turn for help.

The FSA aims to address this through the Parents Guide to Money which turns financial information into something that is more accessible and can be incorporated into day-to-day planning.  It includes ‘a countdown to becoming a parent’ which sets out clearly and simply the steps people can follow to plan financially for parenthood.  

Chris Pond, the FSA’s director of financial capability, said:

“The Parent's Guide to Money helps expectant parents plan their finances at an important stage in life when they face big changes.  It covers most things they might want to know such as budgeting, state benefits, the cost of children and childcare, maternity and paternity rights, savings and work.

“Parents have responded well to the guides in trials, so by 2011 we hope to have reached more than 1.5 million parents.  Ultimately, the success of the Parent’s Guide to Money will be demonstrated by evaluation that shows that new parents are more confident and better equipped to deal with financial issues.”

Notes for editors

1. The Parent's Guide to Money and details of the initiative are available to access at www.parentsguidetomoney.fsa.gov.uk.  For a review copy, please contact the FSA press office.
2. The Parents Guide to Money contains a variety of items including printed information leaflets and calculators on a CD-ROM.  Clicking on the link above will take you through to more information (including leaflets and calculators from the guide).  The FSA is now distributing the guide to expectant parents via midwives and other health professionals and are making it available to parents of young children from Children's Centres and Sure Start Centres across the UK.
3. The Family & Parenting Institute’s ninth annual Parents' Week will take place from Monday 20 October to Sunday 26 October 2008.  For more information, please access the institute’s website: www.familyandparenting.org
4. The guide is part of the FSA-led National Strategy for Financial Capability, which aims to find ways to improve the nation’s financial capability and understanding of personal finance.  It brings together interested parties from industry, consumer bodies, voluntary organisations, government and the media.  The FSA has a vision of better informed, educated and more confident citizens, able to take greater responsibility for their financial affairs and play a more active role in the market for financial services.

5. The FSA defines financial capability as:

   • being able to manage money;

   • keeping track of finances;

   • planning ahead;

   • making informed decisions about financial products; and

   • staying up-to-date about financial matters.

6. The FSA continues to roll-out its 'Delivering Change' strategy, a five-year programme to improve the financial capability of UK consumers, which we are now half-way through.  The programme targets: school children, young adults who are Not in Education, Employment or Training (NEET), students in universities and Further Education (FE), employees in their workplace and new parents.  The FSA also delivers straightforward information through its Moneymadeclear consumer website and publications, and reach a wide range of consumers via our work with non-profit organisations.  To date, the FSA has reached almost four million people against its overall target of 10 million people by 2011 and remains on track.
7. More information about the FSA's National Strategy for Financial Capability can be found on the website.
8. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
9. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.