How do I financially prepare for having my first child in my late 20s or 30s?
Start six to twelve months out. First, confirm your health plan's maternity coverage and estimate your out-of-pocket maximum, since delivery costs are usually capped there. Build a dedicated cash cushion for the deductible plus a few months of new expenses like childcare, which the Bureau of Labor Statistics notes is one of the fastest-rising household costs. Add term life insurance and disability coverage while you are young and premiums are low, and name guardians in a simple will. Update beneficiaries on your 401(k) and IRA. If you plan to save for college, you can open a 529 even before birth and change the beneficiary later. Finally, rehearse your reduced-income budget during any parental leave. The Emergency Fund Calculator at wealthserene.com/tools/emergency-fund helps size the cushion.