Bringing a baby into the world is one of the most exciting and life-changing seasons of your life. At the same time, it comes with some financial stress. From medical bills to monthly baby expenses, preparing your family for a new baby means planning in more ways than one. Whether you’re pregnant or hoping to conceive soon, here are 10 smart and practical ways to financially prepare for a baby as a couple.
1. Review Your Current Budget
If you don’t have a budget already, now is a great time to start one. Notate your current income and spending habits. Where’s your money going and does it support or hinder your goals? What can you shift or cut back on, if needed? Is there room in the budget to build up a “Baby” fund and support baby expenses? Knowing where you stand now is the foundation for building a financial plan that works once the baby arrives.
2. Build or Boost Your Emergency Fund
Now is the time to prioritize saving, if you aren’t already. A solid emergency fund—ideally covering 3 to 6 months of expenses—can help you handle any surprises without panic. Even small, consistent contributions can make a big difference over time. Ideally, keep this emergency fund in a high yield savings account. We’ve used Ally bank for a few years and love it – their “bucket” feature is amazing! Feel free to use my referral link to join them.
3. Understand Your Health Insurance Coverage
One of the best ways to financially prepare for a baby is to understand your insurance benefits. Ask about coverage for:
- Prenatal care
- Labor and delivery
- Postnatal visits
- Baby’s first checkups
This will help you plan for deductibles, copays, and out-of-pocket costs well in advance. Make sure to add baby to your health plan within 30 days after they’re born!
4. Plan Ahead for Parental Leave
Will you or your partner take unpaid time off? Start calculating the income you may lose and create a savings cushion to cover that time. Research your employer’s policies, paid family leave, or any state-specific benefits you might qualify for. (I’ll be making a post about California benefits at some point!)
5. Make a List of Baby Essentials
It’s tempting to go overboard with baby gear, but the truth is—you don’t need it all. Focus on must-haves first like:
- Car seat
- Stroller
- Diapers and wipes
- Basic clothing and muslin cloths
- Feeding/pumping supplies
- A couple infant toys and books
- Baby first-aide items (think thermometer, nail clippers, gas drops, etc.)
- Postpartum supplies for healing (check out my postpartum bathroom cart essentials post for a little of supplies)
Then go into a first round of “nice-to-haves” like:
Crib (we haven’t used our crib yet since we co-sleep. If you will be putting baby in a crib early on then this would be a must-have for you!)
- Tummy-time mat
- Bathing tub
- Carrier
- Breastfeeding pillow
Then maybe a second round of “nice-to-haves” such as:
- More baby toys and books
- Bouncer
- Dock-a-tot
Use baby registries, secondhand items, and gift cards wisely to cut down on out-of-pocket costs.
6. Look Into Life Insurance and Estate Planning
To truly financially prepare for a baby, think about the “what ifs.” Consider getting term life insurance for you and your partner. A good rule of thumb is 8-10x your annual income (or for us stay-at-home moms what would cover the expenses we perform like childcare, meal planning, cleaning, etc). Also take into consideration any debt, financial obligations and your budgeted monthly costs when determining how much insurance to purchase.
And if you haven’t already, create or update a will to name a guardian for your child and outline how assets should be handled.
7. Estimate New Monthly Expenses
Babies come with recurring costs. Start estimating a monthly budget that includes:
- Diapers and wipes
- Formula or breastfeeding needs
- Baby gear and clothing
- Pediatric visits
- Childcare (if needed)
Knowing what to expect helps you adjust your finances before the baby arrives.
8. Shop Smart and Accept Help
Say yes to hand-me-downs, borrow big items from family or friends, and buy only what you truly need. I’ve already packed away about 20 outfits that Oliver never wore and no longer fits into, and he’s only 3.5 months old! Look for deals (love holiday deals like Black Friday, Cyber Monday, Memorial Day, Labor Day, etc.), use coupons, and take advantage of cash-back apps. Financially preparing for a baby doesn’t have to mean spending big—it can mean spending smart.
9. Plan for Childcare Early
Childcare is one of the biggest expenses for new parents. Look into options early (the good places usually fill up fast!), especially if you’ll return to work. Ask about daycare waitlists, family care, or hybrid solutions to get a sense of what your monthly cost will be.
10. Communicate with Your Partner Often
Finances can be an emotional topic—especially with a baby on the way. Everyone approaches and handles money differently. Make space for regular check-ins with your partner so you can talk openly about goals, concerns, and budget adjustments. Staying united will reduce stress and bring more peace to your home.
Final Thoughts: You Can Financially Prepare for a Baby—One Step at a Time
You don’t need to have everything perfectly planned before your baby arrives (we certainly didn’t!). But taking steps now to financially prepare for a baby will help you feel more confident, more grounded, and more able to enjoy those precious early days without as much stress.
You’re not just getting ready for a baby—you’re building a strong foundation for your growing family. You’ve got this!