Seven steps to financial family planning Find a working solution. If you're on maternity leave, you don't have to say for certain that you'll be going back to your job. But if you plan to return to work early, you'll need to give three weeks' notice. If you decide to resign, you'll need to give the amount of notice stated in your contract. Give yourself time to work out your loss of earnings against the childcare and travel costs you'll incur if you decide to go back to work.
Take out life cover. If you die, life insurance means your partner isn't left struggling financially. If you buy life insurance, make sure the policy is written in trust, so the proceeds aren't taxed as part of your estate on your death.
Make a will. Ensure your family will inherit any money, property or other assets when you die. It also means you can appoint a guardian to look after your children. Consider sickness cover. If you had an accident or became disabled or ill for a long time, would your family be able to manage? If not, think about buying accident or sickness cover so that you'd have a guaranteed income in the event of being unable to work. This is especially important if you're self-employed. If you're employed, carefully check the terms of your contract relating to sickness pay.
Review your mortgage. You may want to increase or change your mortgage if you're thinking about moving now that your family's growing. Check interest rates and special offers but take into account any early redemption penalties you may have to pay if you switch your mortgage Plan for your children's future. If your children go on to higher education, you're likely to need substantial funds to support them. It would be ideal if you could finish paying your mortgage at the time they go to college or university. Look into paying off your mortgage earlier than the full term if this would tie in with them leaving school. Look ahead to retirement. It may seem like a long way off but it's a priority to plan for a pension now. If you're working, investigate your company's pension scheme. It may be worth joining, especially if you receive employer contributions. You may also be able to put in additional voluntary contributions (AVCs) to top it up.
Staying at home to look after your baby could affect your future basic retirement pension. You can avoid this by getting Child Benefit in your name, which means your pension qualification will be automatically protected as long as the Department for Work and Pensions has your National Insurance number.