Baby Fund: Financial Tips for New Parents

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Babies are cute, funny, adorable — and expensive. Most people don’t realize just how much additional money it costs when you have a baby. That’s why we’ve put together this helpful list of things to consider and budget for when you have a baby. Let Dime help put your mind at rest so you can spend your energy on what really matters — your new baby.

Pre- and Post-Baby Budgets

There are new expenses to consider even before your baby arrives, so creating two different budgets is going to be important. Consider these kinds of things to include in your budget before and after your baby is born:

Pre-Baby Budget:

  • Out-of-pocket medical expenses related to the pregnancy
  • Car seat
  • Crib
  • Stroller
  • Formula
  • Diapers

Post-Baby Budget:

  • Out-of-pocket medical expenses related to the baby
  • Food
  • Diapers
  • Childcare
  • Insurance

You’ll also want to adjust your budget for any maternity and/or paternity leave you’ll take. Unfortunately, not many companies will pay for this kind of family leave, and if they do, it most likely won’t be at full-salary. So make sure you adjust your budgets accordingly pre- and post-baby.


Before your baby is born, or within a few days of his or her birth, make sure you add your new baby to your insurance policy, and find a pediatrician in your health insurance network. Your baby’s first doctor visit will usually happen within a week of the birth, so finding one ahead of time will take some of the stress away. You usually have up to 30 days after the birth to add your new child to your insurance policy, but check these regulations ahead of time to avoid any issues.

Emergency Fund

Almost all financial advisors, including ours, will tell you that it is very important to have an emergency fund to cover you should the unexpected happen, whether you’re having a baby or not. If you don’t have one already, now is the time to start building one. Should you, your partner, or your child become injured or sick, or should something happen to your car, house, or job, an emergency fund can help pick up the slack.

Calculate how much money you’d need to cover you and your family for at least three to six months, and set it aside.

The Future

What kind of a future do you see for yourself, your child, and your family? A number of people will immediately start a college fund for their child when they find out they’re pregnant, or soon after the birth. But don’t forget about your own goals and plans. Make sure you keep saving and planning for your retirement as well as your child’s future.

Your dreams of the future may change once you have a child so that all you want to focus on is their bright and shining future. So make sure you keep building your retirement fund so your kids won’t have to take care of you when you’re older and they can focus on their own dreams. You’ll be glad you did.

Having a child can be as stressful as it is exciting. But if you take the time to sit down and plan a little for the future, a lot of that stress will melt away.

Speak with one of the Dime team today at 1-800-321-DIME (3463) about setting up a college fund for your new baby, creating an emergency fund to keep you safe, or to help expand your retirement fund. We’re always here to help.

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