A quick internet search on the costs of raising a child brings up plenty of results. In real life, however, how much it costs to bring up a child depends largely on your personal situation. How much is housing in your area? How much free childcare can you get from grandparents? Are the local schools good or do you need to look at private school fees? One fact is, however, absolutely clear – children are a challenge to the family finance. Parenting and Financial Planning While nothing can prepare anyone for the reality of their first baby, there is a lot can be done in advance to sort out practical matters relating to the newborn-to-be. Ideally couples should start putting away some savings as soon as they agree they are seriously interested in having a baby. Putting away a little at a time in advance of the pregnancy can go a long way to dealing with baby-related expenses later. Once the pregnancy is confirmed, baby preparations should also include financial preparations. Planning for Parental Leave It is essential for parents-to-be to know what their employer offers in terms of parental leave. Some employers will only provide the statutory minimum. Others may offer more generous terms. Future parents will also need to think about the “post-leave” stage. Will one parent stay at home or will both work? If the latter, who will look after the baby? If one parent gives up work, there will obviously be a loss of income. If both parents work, there may be childcare costs. Depending on circumstances these may be paid out of income or financed in another way. For example parents may use their savings or may have been investing for this time. Securing a Child is Long-Term Future It may not seem like it at the time, but sooner or later the sleepless nights, dirty nappies and teething do come to an end. Parenting, however, is a long-term job and children are long-term commitments. Even if local state schools are good, there is still university and other expenses like driving lessons and first cars. Depending on where you live and what your child wants to do with their life, having a car (and a licence and insurance) may make a world of difference to their chances of employment. Investing for a Child There are a number of ways to help finance your child is path to adult life. One obvious route is Junior ISAs. At current time you can invest up to £4080 per year. Other relatives and friends can also put money into the pot. Junior ISAs can be held in cash or invested in the stock market (or both). In either case the returns are tax free. Once your child turns 18, the money becomes theirs outright. Junior ISAs can be attractive but there are a couple of points about them parents need to understand. First of all, unlike their adult counterparts, the money in Junior ISAs is effectively locked away until the child is 18th birthday. There is absolutely zero flexibility in this. Therefore if you want to save in a way which allows withdrawals, you will need to look at other options. There are child savings accounts without the tax advantages but with much more flexibility. Another potential issue is that the whole sum is available to your child on their 18th birthday. If you save the full amount each year, that is £73,440 plus any returns. Your child could use it responsibly. If you have taught them good financial management maybe they will. But if they go out and blow it all on wine (wo)men and song, there is absolutely nothing you can do about it. If this is a concern for you, you may wish to look at creating a trust for your child. This might sacrifice some of the tax advantages of Junior ISAs but could give you much more control over how the money is eventually released and spent. The value of investments and any income from them can fall as well as rise.  You may not get back the amount originally invested. HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen https://www.moneyadviceservice.org.uk/en/articles/junior-isas https://www.moneyadviceservice.org.uk/en/articles/childrens-savings-accounts https://www.moneyadviceservice.org.uk/en/articles/setting-up-a-trust

In an ideal world, buyers and sellers would work together to reach a deal with which both were happy. In the real world this does sometimes happen. Sadly it also happens that sellers try to take buyers for as much as they can get. What is more they can use very underhand tricks to achieve this. Here are a few (and what you can do to avoid them). Dynamic Currency Conversion http://www.theukcardsassociation.org.uk/individual/dynamic-currency-conversion.asp Some shops, restaurants and cash machines abroad now offer a service called Dynamic Currency Conversion. This one only applies in specific circumstances, but it can be such a nuisance, it is worth looking out for it. Dynamic currency conversion is when a price is advertised in a foreign currency but charged to your card in your own currency – at the merchants exchange rate. This is supposed to be an extra, add-on service. It is meant to give added convenience to international travellers and online shoppers. To be fair, it can be used entirely transparently and accurately. It can also be a useful way for buyers to avoid foreign-exchange fees. Unfortunately it can also be used to increase an item’s price in a subtle way. If you are looking to get the absolute best deal, you can check the merchant’s converted price against an independent exchange-rate calculator. Then you can decide whether to accept it or just take the hit with foreign-exchange fees. Alternatively you could look at getting a card in the currency of the purchase, i.e. a travel-money card. Forgetting to Cancel after Trial Periods Some companies offer a free trial of their add-on services. They may take your billing details up front so that they can start to bill you after the trial is over, unless you actively remember to cancel. Likewise some products, such as credit cards, offer introductory benefits for a certain period. They will then apply their standard rates at the end of this period unless you actively cancel. On a similar note some contracts are for a fixed length of time after which they renew automatically unless you actively opt out. There are two ways this can hit you in the wallet. Companies increasing fees without you noticing (in time). Companies failing to inform you that they have better deals available. The way to avoid all of these extra costs is to stay on the ball. Make a note of when introductory offers and contracts come to an end. A paper calendar or diary is one way to do this. In this age of smartphones, however, you can put a note in an electronic calendar. Then you can set yourself a reminder to take action in good time. This is particularly useful for services such as insurance policies. In these cases you may well need the service but will want the best price. Give yourself time to shop around. “Untick the Box” Charges You buy an item for £10 but when it appears on your statement it is £12. You query this and discover that this was an optional extra. The box was helpfully ticked automatically and you never unticked it. There are lots of variations of this trick. One is to make customers go through the entire purchase process and then add in an effectively unavoidable fee at the end to complete the purchase. Yes, customers could click close and walk away, but by that point there is a good chance they will just grit their teeth and pay. Then of course there are add-on fees for items you might have expected to be included. Charges for hand-luggage on planes are one example of this. The strategy for avoiding these is a combination of alertness and determination. You need to stay alert to what is and is not included in any purchase. You also need to be realistic about when to walk away from a transaction. If you saw a headline price of £20 but “extras” bump it up to £40, is it still a good deal?

Life happens. It has its ups and realistically it also has its downs. Hopefully, overall, there will be more ups than downs. It is, however, wise to be prepared for the more challenging periods. “Am I protecting my family enough?” is a question to keep in mind at all times. Here are four points to look at to keep your family financial secure. Cash Savings This may seem like stating the obvious, but having a cash cushion can help protect you and your family from financial blows. They are particularly useful for what could be called short-term shocks. These may not be covered in other ways, or you may not want to claim on other cover. For example if you are a freelancer and a regular contract is ended, cash savings can tide you over until you replace it. How much you need in the way of savings will depend on your personal situation. Income Protection https://www.moneyadviceservice.org.uk/en/articles/do-you-need-income-protection-insurance No one wants to think about getting ill but it can and does happen. How would your family cope if the main breadwinner were suddenly unable to work? In the short term, cash savings might tide you over. If you are close to retirement and have a pension due, they might be all you need. If, however, you have a longer horizon, then looking at some form of income protection may be advisable. The most obvious candidates for this product are the self employed. Even the employed, however, might want to think about it. Income protection can be taken out to cover you for sickness and injury and provides you with an income until you are back on your feet. Critical Illness Cover https://www.moneyadviceservice.org.uk/en/articles/critical-illness-insurance-do-you-need-it Critical illness cover pays a lump sum if you are diagnosed with one of a specified range of medical conditions. It can be used in combination with medical insurance and income protection to help protect against illness devastating your finances. Income protection cover will take care of replacing your usual income. Medical insurance will take care of getting you the best possible treatment in the shortest possible time-frame. Critical illness cover can help smooth over the extra expenses which can be caused by illness. For example, it could help towards paying off your mortgage, covering additional medical expenses or reducing the financial impact if you were unable to return to work, or anything else you needed. Life Insurance Cover https://www.moneyadviceservice.org.uk/en/articles/do-you-need-life-insurance http://www.legalandgeneral.com/life-cover/existing-customers/online-trusts-tool/ You are irreplaceable but in the event of your death being able to replace your income can give your family peace of mind. Even if you are a home-maker, you still make a financial contribution to the household. In simple terms, someone would have to do what you do in the event of your death. Family and friends will often do what they can to help, but this can be an extra burden on them. It is one they may struggle to manage over the long term. Even when you have a substantial estate, there is another advantage to life insurance. In simple terms it can be written in a way which leaves it ring-fenced from the rest of your assets. This means that it can be released promptly rather than having to go through the (potentially lengthy) process of probate.

There's lots of good advice available on how to get out of debt.  The reality though, is that getting out of debt can be a bit like dieting.  Even though, ultimately, it can do you good, the process itself isn't necessarily a whole lot of fun.  Making it fun may be a bit too much of a stretch, but there are ways to keep yourself motivated.  Who knows, you might even start to enjoy the challenge. Tip 1 – Be Reasonable With Yourself You may have made some stupid mistakes to end up where you are now, but those are in the past. The key point now is to manage the situation you are in and to put yourself into a strong position for the future. If you only have a small amount of debt, you may be able to pay it back by going on a financial crash diet.  In other words, you can pare your lifestyle down to the minimum so as to make the maximum possible debt repayments. There is, however, a limit to the length of time anyone could reasonably be expected to follow a strategy like this.  If you try to keep going with this sort of plan for too long, then you open yourself up to the danger of blowing your budget. At best, you'll have a (major) set-back.  At worst, you'll lose motivation to continue. With this in mind, it can be better to pay back your debt a little more slowly so you have a bit of breathing space. Tip 2 – Work Towards Goals And Rewards You don't have to wait until you are debt-free to celebrate progress. Set yourself goals to achieve along the way and allow yourself an appropriate reward for meeting them. The rewards don't even need to be financial.  At the beginning, you can even just award yourself a certificate.  Pin it on your wall and look at it every time you need a bit of a boost. As time goes by and you begin to get more control over your finances, you can start to divert a bit of money from your debt repayments for small rewards to recognize your achievements so far. You can also start to think about what you'll do with the cash you're currently spending on debt repayments once you're debt free. Tip 3 – Get Creative And Be Flexible To Get Treats Keep your eyes open for ways to get treats at lower prices.  There are actually all sorts of options. Check magazines for old-fashioned, money-off coupons and check online sites for discount codes.  Look for off-peak deals and last-minute offers. If you're in or near a place where students study practical courses, then look out for colleges offering cut-price services carried out by their students. Squeeze extra benefit out of purchases you have to make anyway by signing up for loyalty deals. Try home-made alternatives to purchases you can't afford for now. Have a film night at home with supermarket popcorn instead of going to the cinema (and you can pass on the trailers too). Try your luck with free-to-enter competitions (or ones which require purchases you were going to make anyway).  Somebody has to win. Tip 4 – Keep Some Emergency Funds Available If you're already in debt, then you want to avoid even applying for more credit, always assuming you can actually get it. You particularly want to avoid being in a situation where you are applying to high-interest lenders aka payday loan companies and the like. Leaving aside the impact on your credit score and the expense, this can be a very demoralizing experience after you've worked so hard. Having an emergency fund will help you to cope with life's ups and downs without having to resort to more credit.

These days getting a mortgage is a bit like getting a job. You may know you have what it takes to manage it, but unless you communicate that clearly, the chances are you're going to go away empty-handed. Understanding The Mortgage Landscape The Mortgage Market Review reforms The Mortgage Market Review took place between 2009 and 2012. As its name suggests, it was a major review of mortgage lending practices in the UK. The result of it was new mortgage rules and much stricter mortgage lending practices. In the old days mortgage applicants might have asked themselves “how much can I borrow”, these days, the relevant question is “how much can I afford”. In very simple terms, mortgage lenders today will be looking to see clear evidence that you can afford your mortgage over the long term, through life's changing circumstances. So, how do you get the mortgage you want? (see also http://www.fsa.gov.uk/about/what/mmr) Step 1 – Tidy Up Your Present Getting your financial house in order can have all sorts of benefits in addition to being approved for a mortgage. In terms of improving your chances of being improved for a mortgage, you want to look at your overall debt situation. That includes what you could call potential debt. In other words if you have credit and store cards you rarely, if ever, use, it's time to think about whether or not you really need them. As long as you keep them open, potential lenders will see that you could ring up debt to the credit limit on each card. You may know you're not going to but they don't. If you close them off, however, you will make yourself look more attractive to a potential mortgage lender. Likewise, you may want to put in extra effort to clear off smaller debts, such as personal loans. In addition to this, make sure that you are on the electoral register (see: Why should you register to vote?) at the address you plan to use when submitting your mortgage application. As well as ensuring you will be able to vote if there is an election, this is also a major point with lenders. Step 2 – Tidy Up Your Past Your financial history is summarised in your credit report or, more accurately, your credit reports. In the UK there are three companies provide credit-reporting services. These are Experian, Equifax and CallCredit. As they each use their own systems to create their own reports, you will need to get a copy of each report to see yourself as others see you. On each report, check for any factual errors and, if necessary, have these removed. Then look for anything, which comes under the heading of “true, but”. In other words, look for anything which is factually correct but paints a misleading or outdated picture of your finances and/or financial management. You might not be able to get this removed (although if you have resolved the issue, this may be possible, there's unlikely to be any harm in asking). You may, however, be able to add a note about any special circumstances which led to the problem. As a minimum you can be prepared to explain the situation to potential lenders. Now have a look at the overall picture. Is there anything you could do to make it look better (per the comments in the previous section)? If so aim to do it before putting in your mortgage application. Step 3 – Make your application look good Treat your mortgage application process as seriously as you would treat an application form for a job. If you're applying on paper, make sure your writing is at least legible. If you're applying online, make sure you fill in all the relevant information in all the right boxes. In either case, be realistic about what you can afford in terms of monthly repayments and be prepared to support your application with appropriate documentation. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE For Residential & Buy to Let Mortgages, our typically processing fee is £395 and we may receive commission from the lender.