• Christie Cook, Managing Director of Retail at Hodge Bank, shares her five key steps on how to future-proof your baby’s financial future.

  • September is the most popular birth month, so new parents should start getting prepared now.

  • Starting a long-term financial savings plan and understanding the options available are great places to start.

According to ONS statistics, September is the most popular birth month, with the most popular birthday being September 26th.

Christie Cook, managing director of retail at Hodge Bank, offers expert advice on how to plan and save over the next nine months for your baby’s future and how to manage the costs of parenthood today.

“With so many immediate expenses, it’s easy to put off long-term planning; but the earlier you start saving, the stronger the financial foundation your child will have as they grow. It’s never too early to begin planning for their future.”

Christie has outlined five key tactics for first-time parents to start building a financial nest egg that prioritises their baby’s future without compromising their own financial wellbeing:

Future Planning by Setting Up a Separate Savings Account

“Setting up a separate savings account specifically for your baby’s future is a great first step.

“Whether you use a high-interest savings account or a Cash ISA (Individual Savings Account), designating money solely for your child will help you stay focused on your long-term goals.

“Regularly contribute a set amount each month, even if it’s small, and watch it grow over time.

“As you’re starting early on, you don’t need to put hundreds of pounds in each month. Even by putting just £25 away a month will ensure that there’s £5400 by your child’s 18th birthday, plus any interest you’ve managed to accumulate during that time.”

Consider a Cash ISA for Tax-Free Growth

“A Cash ISA could be a smart option for long-term savings, allowing you to put money aside for your child’s education or other future expenses, free from tax.

“At Hodge, we offer competitive rates on Cash ISAs, which allow you to contribute up to £20,000 per year tax-free. By starting early, you can take advantage of compound interest and provide your child with a significant nest egg by the time they turn 18.”

Consider Starting a Child Benefit Financial Plan

“For many parents, Child Benefit can be a helpful resource. However, rather than spending the monthly payment, you could put all or some of it, into a dedicated savings account.

“Regularly adding a partial amount or the whole amount of the benefit to your savings will quickly build a financial cushion for your child’s future needs, like higher education or a first car.”

Budget for Baby, But Don’t Forget About Future Planning

“While it’s important to manage your day-to-day expenses as new parents, it’s equally crucial to budget for the future.

“Reviewing your spending will allow you to identify areas where you can cut back, such as subscription services or non-essential purchases.

“You could use any extra savings to build a financial foundation for your child’s future—whether it’s for their education, their first home, or helping them with future life milestones.”

Review Your Life Insurance and Will

“The arrival of your baby, is an ideal time to review your life insurance coverage and update your will., ensuring your family is financially protected in case of the unexpected..

“By being proactive and starting early with financial planning, you can give your child the best possible start in life and by ensuring that all legal documents are up to date, you’re able to safeguard the financial measures you’ve taken to allow your child financial stability without sacrificing your financial security in the process.

“With the right approach, building a secure financial foundation for your family doesn’t have to be overwhelming—it’s all about making thoughtful, consistent decisions along the way.”

ENDS

Notes to Editors:

About Hodge:
For more than 50 years, Hodge has been a trusted provider of financial services across the UK. From helping individuals save and purchase homes to offering businesses tailored lending solutions, Hodge has continually demonstrated its commitment to enhancing financial well-being.

Media Contact:
Emily Leyshon
Liberty Marketing
Email: [email protected]