How do I financially prepare for a new baby before they arrive?

A baby adds both one-time and ongoing costs, so plan on two fronts. Before birth, build a sinking fund for upfront items, gear, nursery, and out-of-pocket delivery costs, by estimating the total and dividing across your remaining months. Confirm your health plan's maternity coverage and out-of-pocket maximum so the hospital bill is not a shock. For ongoing costs, the biggest is often childcare, which in many U.S. metros rivals rent, so price it early and adjust your budget now to test whether the new monthly number is livable. Also review life and disability insurance, update beneficiaries, and start (or bolster) your emergency fund, since a larger household means a larger buffer. Practicing the post-baby budget before the baby comes reveals gaps while you still have time to fix them.