Money, money, money! How it adds up! New shoes, new clothes, new toys and tricycles. Childcare costs are sky high.

Many mothers aren't earning. Toddlers eat more, need more entertainment and no longer go free on holidays.

Where there's a will
If you still haven't made a will, do so now - especially if you're unmarried. Unmarried partners can't inherit from each other unless there's a will. With unmarried parents, only the mother has legal responsibility for a child, unless the father has obtained a court order or the couple have formally agreed that they should both have parental responsibility. Should anything happen to the mother, this may affect the father's position vis-à-vis the children. If you're a single parent, separated or divorced it's vital to nominate a guardian for your children.

Who will provide?
Caring for children is a major financial responsibility. If anything happens to you or your partner, who will provide for your child? A financial advisor can help you put your financial affairs in order and make provision for your child's future. You may also want to consider how your family will be cared for if you become critically ill or if you lose your livelihood.

School
If your child is at a fee-paying nursery you will already realise how expensive formal education will be, if you choose the independent option. Fees at independent schools are rising rapidly and take a large chunk out of earned income.

If you are likely to choose private education, the earlier you start planning the better. There are several financial products designed specifically to pay school fees. State education can have hidden costs - a local school with a good reputation can push up house prices within the catchment area.

University
Even if you use the state system for your child's primary and secondary education, university has become a costly option for many parents. At present many parents have to pay £1,175 per year in tuition fees. If your student lives away from home while at university, add on the costs of maintenance for three to five years.

At present the NUS estimates the cost of a university education at between £7,000 and £8,000 per year. These costs may increase if universities are allowed to charge 'top up' fees or if future governments decide to pass on more of the costs of higher education to students and their families. The American concept of a college fund will become more prevalent in the UK, as parents try to anticipate the demands on their purse of higher education.

Build a fund
Do you have parents who want to want to start a savings plan for your child? Grandparents can give money to your child in more tax efficient ways. Are you saving your Child Benefit for your child's future education? What is the best way to invest to get maximum growth until your toddler is 18?

Opening an account for your child
If you open a bank account for your child, you'll need to produce the birth certificate and other forms of ID. Children have the same personal tax allowances as adults (up to £4,535 in 2001-2002). Make sure you fill in form R85 and return it to the Inland Revenue to get their interest paid in gross. If you pay money into your child's account, you may have to pay tax on the interest if the gift exceeds £100 per parent.