British consumers may wish to financially prepare for parenthood, as a newspaper has suggested UK maternity pay may push mothers into financial problems.
With the credit crunch already hitting families the hardest, a new baby may create concerns about money and softlink=”debt_management”>debt management. However, to address the shortfall between a regular salary and maternity pay, parents have been urged to take advantage of assistance.
Speaking to the Independent on Sunday, Punter Southall Financial Management’s Natasha Freedman said parents should budget and practise living off less money to prepare for after the birth.
Ms Freedman also recommended applying for child tax credits and childcare vouchers that may help parents stay debt free.
Isas and investing child trust vouchers may prepare for lean times ahead as well.
Also talking to the newspaper, financial advisor Malcolm Cuthbert of Killik & Co advised parents to agree a protection policy in case of a partners’ illness.
“The often significant drop in income while on maternity leave can be crippling,” Ms Freedman added.
By Morwenna Kearns