How to Financially Prepare for Baby During Pregnancy

Expecting a baby? Here is your month-by-month financial planning guide.

Having a baby is a miracle and an enormous blessing, but one that brings financial challenges, especially if this is your first baby or you’ve been surprised by the pregnancy. The good news is you can take steps to welcome your baby into your financially stable home.

Raising a child is not cheap. The USDA puts the cost of raising a child from birth to age 18 at $233,610 for a middle-income family—around $12,980 per year.¹ There are plenty of ways to save money before your baby arrives—just take it month by month throughout your pregnancy.

During Months 1-3: Meet With a Financial Advisor

Use the first trimester to assess your financial situation and set up a plan for success. If you have a financial planner, schedule a meeting to discuss preparing your finances for your pregnancy and baby. If you don’t have a financial planner, it’s time to find one.

Financial planners help you create a budget and financial plan for the short term such as managing health care costs and any loss of income during maternity/paternity leave. Long term, it’s never too early to start saving for college and retirement.

Ask about creating a will and obtaining life insurance in the event of a catastrophe. You want to make sure your baby is well taken care of.

Your financial planner will help prioritize what is most important and manageable for your particular situation. They may have suggestions on where to start curb spending to save more money.

For starters, you can conserve money eating out, entertainment, or costly salon treatments. Account for potential contributions from family members. How much money you set aside or save for the baby depends on your unique circumstances.

If you have significant debt and little savings, consider free services for budgeting and debt consolidation. Explore services offered through your bank, credit union, or Employee Assistance Program (EAP).

Practice self-compassion and self-forgiveness and transcend any financial shame or financial anxiety. Become a financially conscious parent by positively reframing this challenge.

Month 4: Identify Necessary Needed Items and Create a Plan

During month four, think about what items your baby needs and how much they are going to cost. If you expect any baby showers, consider the following when it comes to your baby registry:

• You will be more likely to receive the items you need by asking for them in your registry. This will also reduce stress regarding excess clutter. Include items at a few different price points so your loved ones can select gifts according to their budget.
• Consider asking your closest family members (like your parents or grandparents) to pool their money together to purchase more expensive items.
• Select items that have good reviews but aren’t the most expensive. This might enable people to give you more of what you need.

If you aren’t having a baby shower, create a list of “wants” and start exploring thrifty options like coupons, sales, buying gently used items through consignment stores, or using sites like Facebook Marketplace. Let friends and family know you welcome hand-me-downs. Let go of ego or pride as you realize you are giving your loved ones a way to support you. Besides, you are being environmentally conscious by not buying new.

Month 5: Research Insurance Benefits and Other Resources

At month five, make sure that the hospital you plan to deliver at is in-network. Also, identify an in-network pediatrician. Ask your insurance provider if there are any special maternity or new baby benefits or coverages available. Learn about your out-of-pocket costs. Explore flex spending or health savings account benefits.

In my therapeutic practice, I’ve seen many new parents not take full advantage of resources available to them through their employer or their partner’s employer. Consult HR about programs available for new parents. They may include leave of absence benefits or EAP services. Ask your doctor or OB-GYN for resources too.

Check out community resources such as support resources available through your park district or place of worship. My client with triplets had an army of volunteers from her church help her with everything from child care to meals to supplies during the first several months saving her countless dollars while preserving her mental health and marriage.

Month 6: Baby-Proof Your Mental Health and Relationship

During month six, many people spend more time planning their nursery than preparing themselves or their partnership for the transition to parenthood and family. So instead, focus on investing in some pre-baby counseling.

This investment may save you the cost of impaired mental health (which is a real risk because of postpartum depression) or relationship happiness, which can have dire financial consequences. Check your insurance or EAP benefits or sites like Psychology Today to find a therapist.

If you don’t have insurance, contact a social services agency near you. Use these sessions to talk about your psychology of money, money script, and discuss financial communication, transparency, and boundaries when it comes to money.

This is a good time to discuss the plan for any changes to work scheduling and to explore child care options. Ask your financial advisor for input and suggestions.

Month 7: Make Space for the Baby By Selling or Donating Unwanted Items

Month seven is a good time to start nesting. Clear your home of clutter and turn it into cash. Haven’t played your keyboard or used your skates in five years? Consider selling or donating them to a non-profit organization that will give you a receipt to use as a tax deduction.

Month 8: Get Creative About New Income Streams

If you or your partner are taking time off work, plan to cut back your hours, or become a stay-at-home parent, in month eight, consider new income sources. For example, a part-time, work-from-home, flexible data entry job might be perfect during nap times. One couple I counseled picked up a paper route that the dad did while the mom was feeding the baby early in the morning, bringing in another $25K per year.

Month 9: Remember, Every Little Bit Helps

Ask the hospital about sample formulas, creams, diapers, referrals, or discounts during month nine. A free diaper bag might be perfect for anyone helping you with child care. Ask about resources and referrals and discounts for ongoing needed items and services such as child care.

Having a baby is life-changing. Make it easier on yourself by doing some preparation during each month of pregnancy. By doing so, you’ll be more emotionally, relationally, and financially prepared for your new bundle of joy. Remember, it takes a village to raise a child—it also takes one to be a happy parent so open yourself up to receiving the support you and your baby deserve.