5 financial tips for expectant parents

A new baby changes every aspect of your life, including your finances. You’ll likely see an immediate jump in spending along with long-term adjustments to your budget. So as you get ready to welcome your bundle of joy, here are some tips to help you prepare for a healthy financial future.

Preparing and caring for a baby adds new costs to your expenses. Use our budget tools to help you:

• See if you need to make adjustments
• Total your one-time expenses, like a crib
• Estimate new ongoing costs, like diapers
• Look for places to cut back, like subscriptions

Having a financial cushion for unexpected expenses is even more important when you have children, so:

• Open or add to a dedicated emergency savings account
• Aim to build it to 3-6 months’ worth of expenses
• Put aside what you can, even $10/week adds up over time

Putting pre-tax dollars into an HSA can help cover pregnancy and baby-related expenses. To start:

• Open an HSA if you have a high deductible insurance plan
• See what your HSA includes as qualified expenses
• Contribute what you estimate you’ll spend on eligible items

If your work life will change while you’re raising your child, plan now so you can do what’s best for your family.

• Estimate your new earnings
• Recast your budget if your income will change
• Factor in childcare and baby expenses
• Update your will and beneficiaries on IRAs and investments

Use our college savings calculator to predict education costs and how much you’ll need to save.

• Talk to a financial advisor about investment and 529 accounts
• Deposit baby gifts into the fund
• Direct money from your paycheck into it

Getting excited to welcome your new baby? Speak with a local banking expert about ways to prepare your growing family for a healthy financial future.