Children are a precious gift from God—a reward and a heritage to be cherished. With the incredible joy of welcoming a newborn also comes great responsibility, especially in managing finances wisely.
To help new parents navigate this season, here’s a New Baby Financial Checklist to ensure you’re covering all the essential financial bases.
In the whirlwind of 2 AM feedings and endless diaper changes, don’t let updating your health insurance slip through the cracks. Most plans allow a 30-day window after birth to add your baby to your policy.
While you’re at it, double-check that your plan covers:
Thankfully, welcoming a new baby qualifies as a “life event,” meaning you can make necessary adjustments to your plan.
Life insurance isn’t for the baby—it’s for you. Ensure you have a term life policy that provides at least 10 times the primary breadwinner’s salary in coverage.
Don’t overlook the caregiving spouse, either! If something were to happen to them, the cost of childcare could be significant. Securing life insurance ensures financial stability for your growing family.
It’s time to add a “Baby” category to your budget. When estimating how much to allocate, consider these new expenses:
These costs add up quickly. You may need to adjust other budget categories to stay on track, but planning ahead will reduce financial stress down the road.
A will isn’t just about distributing assets—it’s about securing your child’s future. One of the most critical decisions in your will is naming a guardian for your child in case both parents pass away.
While this can be a difficult decision, it’s essential to have a plan in place. Pray for wisdom and choose someone who shares your values and would provide loving care if the unthinkable happens.
Proverbs 13:22 reminds us: “A good man leaves an inheritance to his children’s children…” This inheritance isn’t just financial—it includes faith, wisdom, and values that shape their future.If you don’t already have an emergency fund, now is the time to start. Aim for 3 to 6 months’ worth of living expenses in savings.
A new baby comes with many surprise costs, from medical bills to strollers that cost more than you expected. If a financial emergency—like a job loss—were to happen, having this cushion would be a huge blessing.
With the arrival of your baby, your tax situation changes:
Child Tax Credit—You can claim your baby as a dependent on your tax return, which may qualify you for a $2,000 tax credit.It may feel early, but saving for your child’s education now can set them up for success. A 529 plan is a great option—it can be used for:
Identity theft isn’t just an adult problem—it can happen to children, too. If you’ve applied for a Social Security number for your baby, consider placing a credit freeze with the three major credit bureaus.
This prevents fraudsters from opening accounts in your child’s name, protecting their financial future.
Welcoming a new baby is an incredible blessing, but it also comes with financial adjustments. By taking these steps, you can ensure a secure and stable future for your family.
Have you checked off all the items on this list? Start today and take one step at a time—you’ve got this!