Having a new baby is a time of joy and wonder. But for many new parents, it can also be a bit terrifying. There are new roles and responsibilities, a new little personality to get to know, and - let's face it - new bills to pay. Anyone who's had a child, or is close to someone having a baby, knows that with all the excitement comes the worry of juggling time and money. And those anxieties tend to increase as the costs of raising children, especially education costs, continue going up.

A recent BabyCenter/Charles Schwab Survey gives credence to the growing financial concerns of new parents. According to the survey, seven out of 10 new moms and 40 percent of mothers-to-be would rather have a contribution to their child's savings account than a more traditional gift. Of course, they appreciate all the cute clothes and toys now available; however, once the new baby outgrows the latest styles and trends, the parents are still faced with saving for their child's future. And every little bit helps.

If there's a new baby you're planning to buy for, consider a non-traditional gift. Whether you're a grandparent, relative or friend, there are a number of creative ways to help new parents stretch their current budget - as well as help them gain a head start on their child's savings plan.

THE GIFT OF TIME CAN BE WORTH A FORTUNE

Besides money, new parents may be short on one other item: time. By offering to do some time-consuming tasks that usually carry a price tag, you'll be giving a double gift.

Here are some ideas:

- Make dinner. Whether you cook a meal in their home or make some meals in advance and stock the freezer, most new mothers and fathers will appreciate your thoughtfulness. It not only saves them the time and money of preparing food, it gives them a few minutes to sit down and enjoy it together.

- Clean the house. You can do this yourself or hire a cleaning service. Especially in the first couple of months, this type of help can be invaluable.

- Offer to baby-sit. If there are other children, whisking them away for a few hours will give the new parents a bit of breathing room. Even offering to stay for an hour or two, while the baby sleeps, can give the new mom a bit of much needed time to herself - free of charge.

GIFTS OF MONEY CAN PUT TIME ON THEIR SIDE

Here's another interesting statistic from the survey: 93 percent of women planning families intend to open a college savings account when they have a baby. However, only 42 percent actually follow though. And of the group who do, only four in 10 contribute $50 or more per month.

The biggest advantage new parents have when it comes to saving is the power of time. If you do the math that becomes crystal clear. Just as an example, families who begin to save just $100 a month at a child's birth can accumulate almost $35,000 by the time the child is 18 (earning 5 percent interest/year). Wait until the child is 10 years old to start saving and that's reduced to less than $12,000.

Even if the amount you give is small, your monetary gift may inspire a new parent to open an appropriate savings account sooner rather than later. If you're a grandparent or relative that has a continuing interest in the financial future of the child, you could have an even greater impact by helping to set up a college savings or other investment account. From high-yield savings accounts to 529 plans, there are a number of savings options available to families.

Here are just a few:

- Education Savings Account (ESA): This savings plan allows a parent or guardian to contribute a maximum of $2,000 per year until the child beneficiary turns 18. Contributions are not tax-deductible but earnings grow federal tax-deferred, and there are no taxes on withdrawals that are used for qualified education expenses, including kindergarten through 12th grade or college expenses. The positive is the tax benefits, but some income restrictions are put on who can open an ESA; it's not for everyone. An ESA can still be a good way for a young family to start saving right away.

- 529 Plan: Anyone can open a state-sponsored 529 plan and the lifetime contribution limits are much higher than for an Education Savings Account - in excess of $200,000 depending on the plan. Plus, there is no age limit on the beneficiary. The tax benefits (on the federal and possibly state level) can be significant when the money is used for qualified college education expenses.

There are also unique estate-planning benefits to a 529, which makes it a particularly appealing way for grandparents to contribute to a child's education while reducing their own taxable estate. An extra plus: When a third-party opens a 529 account, its assets are not used in calculating financial aid eligibility.

- Custodial account: This is a brokerage account set up and managed by an adult for the benefit of a minor. Custodial accounts provide a way for you to make a financial gift to children, whether they are your own, a relative's or a friend's. There aren't any tax benefits to a custodial account, but there's a lot more flexibility regarding investing options and withdrawals.

The only caveat: Once the child reaches between the ages of 18 and 25, depending on your state and how you set up the account, the child is free to spend the money anyway he or she wishes.

Of course, the right type of savings account depends a lot on the individual family's financial situation. Therefore, if you're interested in starting an account for a child who's important to you - or you want to encourage new parents to open an account for their child - it's always wise to start by talking to a financial adviser.

A FITTING GIFT FOR EVERY FAMILY

Whether your gift to new parents is in time or money, choosing to help them with the more practical side of raising their baby may be the best way to show your love and support. And you won't have to worry about color or size. Your gift will be a perfect fit now and in years to come.

Carrie Schwab Pomerantz is Chief Strategist, Consumer Education, Charles Schwab & Co. Inc., Member SIPC. You can e-mail Carrie at askcarrie@schwab.com.

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