Financial guide for new and expecting parents
Planning for new costs, maximizing parental leave, and starting a 529 the right way.
A new child is one of the most significant financial events of your life. Costs in the first year — healthcare, childcare, equipment — can run $15,000–$25,000 before the child's first birthday.
The financial preparation that matters most: fully fund your emergency reserve before the birth (3–6 months, with 6 months preferred for single-income households during parental leave), understand your health insurance deductibles and out-of-pocket maximums, update your will and life insurance beneficiaries, and open a 529 — contributions in year one have 18+ years to compound.
Action checklist
Work through the steps in order. Progress saves in this browser, without an account.
Before the baby
6–12 months before
Covers income gaps during parental leave.
See where the first-year expenses fit.
Tool: Budget AnalyzerA new dependent raises how much coverage you need.
Decide who would raise your child.
First year
0–12 months
Usually a 30-day enrollment window after birth.
18 years of compounding makes a dramatic difference.
Tool: College PlannerNew credits change your withholding.
As they grow
Ongoing
Steady monthly contributions beat lump-sum guesses.
Tool: College Readiness ScoreYou can borrow for college, not for retirement.
Tools for your situation
Free calculators and assessments selected for this guide.
- 1Budget AnalyzerModel the new baby expenses and find room in your budget
- 2Emergency Fund CalculatorIncrease your reserve to 6 months before parental leave begins
- 3College PlannerStart a 529 now — 18 years of compounding makes a dramatic difference
- 4College Readiness ScoreSet education savings goals from day one
- 5Financial Resilience ScoreEnsure you can absorb an income shock during parental leave
Recommended reading
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