Turn those Pennies into Pounds for when Baby arrives...

When you learn you're expecting a baby, your financial priorities will change and purse strings may have to be tightened. You won't panic with help and advice from The Successful Personal Investing (SPI) Course (www.TheSPICourse.com), which offers valuable guidance on how to build long-term financial security. Peter Marshall, Managing Director of IRS, which publishes the guide urges expectant mums and dads to consider how they handle their finances and look at new ways to save:

Is your bank account rewarding you?

It is amazing how many families do not make the most of interest-bearing current accounts, which are available at banks and building societies. Enquire as to how to replace your ordinary account with an interest-bearing account and you could earn several hundred pounds a year in interest which will come in very handy when shopping for your new baby.

Peter also advises that new parents shop around for the best deals with banks and the best available interest rates. The key percentage to look at is the Annual Equivalent Rate (AER) as this is the rate you actually earn if you're investing. Before moving, remember to check that you don't have to pay a penalty for early withdrawal as any extra interest may be lost in a fine unless you plan to leave your savings there for a very long time.

Pay yourself regularly

There are several advantages to a regular saving scheme. It provides a discipline and you're less likely to spend money on things you don't really need. With your new change in circumstance, try and cut back on expensive habits such as buying takeaway coffee and put the money you save into a high interest saving account for baby's future.

Start slowly, but form the saving and investing habit

• Make sure you use the government baby bond, The Child Trust Fund, ut belongs to your child.
• Start a regular payment into a plan for baby. Could be a building society or regular investmentplan, or into the same Child Trust Fund.

Plan to review in the future

Don't just set-and-forget. Make a plan to revisit investments for your child, when you can apply more time to get the best return for them and you.

Don't lose what you can keep

You can save up to £7,200 in the current tax year with up to £3,600 in a cash ISA and the rest can be invested in a stocks and shares ISA. This increases again in April 2010. The advantage of an ISA is that the capital growth accumulates entirely tax free, and you pay no tax on interest.

ISAs are best regarded as a medium to long-term investment to give you more chance to build on the tax-free growth and when you cash it in there is no tax to pay either.

Shop around for credit cards with generous perks

With buggies, cots and baby clothes to buy, you may need some extra cash but if you opt for a credit card, make sure you choose the one that's right for you. There's no point going for a card with a low interest rate if you plan to settle your balance in full each month.

Instead, investigate the 'perks' that some cards offer. You may be able to accumulate bonus points and use them for a holiday to enjoy with the baby.

Before borrowing any money, consider whether you really need to. If you have £5,000 sat in the building society for a rainy day, then it doesn't make sense to borrow another £5,000 at a high interest to buy a new family car.

Don't pay more than you need to on your mortgage

Your mortgage is probably your biggest single monthly commitment and over it's life, it will almost certainly be the biggest series of payments you make. Your mortgage is an obvious area where money could be saved by transferring to a low interest alternative but if you're considering making the change, check out if there are early withdrawal costs as if so, it may take longer than you think before savings outweigh any costs.

Claim all the tax allowances you're entitled to

As a new parent, you may be entitled to all sorts of tax allowances and refunds, and in most cases, you won't get them unless you ask for them so you need to be aware of what you can claim.

Click here to see Your Parental Entitlements

Make sure you protect your family

Having introduced Junior to the world, you may only then realise just what a scary place it is. Protect them.

Ensure that these two things are in place

• Must have 1. A Will. They are not as daunting as they sound, and will make sure that your child is cared for as you want, not as the local Social Services decide, should the worst happen.
• Must have 2. Insurance, a fund that is protected by the will to keep your family cared for.

Then consider if you can afford this one

• Maybe 1. Critical illness cover. Especially if your household is likely to be relying on one income.