Preparing Financially for a New Baby

Authored By: Community Financial Credit Union on 4/27/2021

Congratulations! You’re expecting a baby and you’re breathless with excitement — and nerves. Whether you’re pregnant, adopting, using a surrogate, or something else, a baby means big changes, and a part of those changes is lots of new expenses. How will you pay for it all?

We’ve got the tips you need to prepare financially for a new baby.

Pay down debt

Don’t let your debt grow along with your little one. It’s best to get your finances in order to make it easier to manage all new expenses and prepare for your child’s future. Make a plan today to kick that debt for good!

Adjust your monthly budget

Babies don’t come cheap. When your little one arrives, you’ll need to spring for baby gear and furniture, a new wardrobe, diapers and possibly child care as well. Most of these expenses will be ongoing, so it’s best to make room in your budget for these new items before your baby is born.

Set up a baby account

All those baby expenses can be overwhelming, but if you break them down into bite-sized pieces, they’ll be easier to manage. Why not set up a separate savings account for all baby expenses? You can automate these savings by setting up a monthly transfer from your paycheck or checking account to your “baby account.”

Estimate prenatal care and delivery costs

It costs how muchto have a baby?

Some folks can pay close to $10,000 or more in prenatal costs and delivery. Of course, these amounts do vary by location and insurance provider, but it’s a good idea to work out exactly how much it will cost you to have a baby so you aren’t in for an unpleasant surprise after the baby is born.

If you’re planning on adopting, you may actually be looking at somewhere between $5,000 and $40,000. Going through a foster agency may land you at the lower end of the spectrum, whereas an international adoption may mean a higher cost.

Moral of the story? Start saving now!

Start saving for college

Believe it or not, your little one will, one day, be all grown up and ready for college! This can mean paying a small fortune in tuition. The sooner you start saving for your child’s college education, the easier it will be to save. You’ll spread the costs, and also give those savings the best chance at growth.

Consider opening a 529 plan before your child is born where your college savings can grow tax-free, or talk to one of Community Financial Credit Union’s Financial Sales Representative about educational savings options today at (877) 937-2328.

Write a will

While you’re preparing to welcome home your bundle of joy, you’re probably not thinking about what would happen to them if an unthinkable tragedy strikes you or your partner. Unfortunately, this could mean new parents forget to write a will until it’s too late. Do your little one a favor and write a will—and purchase life insurance if you haven’t done so already—and make sure they’re covered no matter what.


Welcoming a new baby into your home is a life-altering experience, and can mean big changes for your finances. Follow our tips to ensure you’re financially prepared for your new baby’s arrival!


Your Turn: What steps are you taking to prepare financially for a new baby? Tell us about it in the comments.

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