We all know that having children can escalate one’s expenses like no other. This is true no matter where you may be. That is why different governments have various incentives and benefits for parents. The Financial Services Authority in the UK is doing something more than providing these benefits, though. It is actually handing out a pack called The Parents Guide to Money starting this summer. For what? To help parents manage their money and to have a guide on claiming benefits available to parents. The targets are parents to be.

This piece of news is actually creating waves across the British blogosphere. Take this post from Piper Terrett:

I imagine this could be seen as yet another example of government-related organisations poking their unwelcome noses into people’s affairs. And don’t new mothers have enough to deal with without worrying about how the financial regulator thinks they should be running their household finances? The Daily Mail has predictably already run an article suggesting the scheme could breed another generation of benefit scroungers.

But, while I can’t speak from experience as I am not a parent, from witnessing the struggles of some of my friends, surely having a baby is a very disruptive time of your life when you need all the help you can get? It’s likely that if you’re part of a couple then you’ll be struggling on one salary, possibly with maternity pay, and if you’re a single parent with a limited income life is probably very difficult indeed. Not to mention that recent research claims bringing up a child costs a mammoth £180,000.

Obviously, from the first paragraph, she is looking at the government being a meddler in this case. However, other people seem to see the pack as a positive thing:

And far from seeing it as the FSA interfering, these new mums gave the guide the thumbs up. “Since when is putting out a leaflet meddling?” says Katherine. “That’s not meddling, it’s useful. It sounds like a great idea.”

“It’s obviously a good idea. I’m just irritated that it won’t be out in time for us,” complains Helen. She also points out that, as a couple, getting used to living on a budget and relying on one salary isn’t easy when you’re accustomed to two salaries coming in. “It’s really hard for men I think especially to accept that one of you is not going to be earning and you suddenly have to change your [budgeting habits]. It’s a bit of a shock for everyone.” And budgeting is something that, it seems to me, has sadly gone out of fashion in this society where the credit card is king.

I tend to agree with these other people. I mean, this pack does not cost anyone anything anyway. The only thing it will do is to provide information so that new parents can make the most out of government benefits. At least, in this way, the government is actually taking steps to give practical help to its citizens. What do you think?

This entry was posted on Thursday, February 21st, 2008 at 4:24 am and is filed under Budgeting, Personal Finance . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.