How does my budget change after having a baby?

Expect new fixed costs, lumpier irregular ones, and often a temporary income dip from parental leave. The biggest line is childcare, which in many areas rivals rent, so model it as a second housing payment if you'll use daycare. Add a baby sinking fund for the early gear and recurring supplies, revisit health insurance and your deductible since you'll use it more, and check whether your employer offers a Dependent Care FSA to pay up to $5,000 of care pre-tax. This is also the moment to add or increase life and disability insurance and start a 529 if college is a goal. Build the new fixed costs first, then trim discretionary categories to fit, and refill your emergency fund afterward. The /for/having-a-baby guide lays out the full sequence.