Everything I’m Doing to Financially Prepare for Our First Child
There’s something surreal about preparing for a baby.
You can read the books. You can assemble the crib. You can watch the hospital tour & birthing videos twice.
But at some point, it hits you:
This tiny human is about to rearrange your calendar, your sleep, your house… and your balance sheet.
As a financial life planner — and as a soon-to-be dad — I didn’t want to “wing it.” I also didn’t want to overreact and optimize every last dollar out of fear.
So here’s exactly what Jillian and I are doing to prepare financially for our first child.
If you’re expecting (or thinking about it), steal whatever’s useful.
1. We Slightly Increased Our Emergency Fund
Most financial advice says: “3–6 months of expenses.” But this can vary widely depending on your job security, whether or not you own a business, and whether you’re a single or double income household.
For us, we have a 3-month emergency fund for our businesses, and a 3-month emergency fund for personal.
But babies introduce two new variables:
Medical unpredictability
Income unpredictability (especially when both spouses are self-employed)
So we added a modest buffer, slightly increasing our personal emergency reserves so that we wouldn’t sweat things as they happen. Just enough that if:
One of us takes longer off than expected
There are unexpected medical bills
Our client work gets delayed
…we don’t feel financial stress layered on top of newborn exhaustion.
Practical takeaway:
Calculate your current monthly baseline expenses.
Add realistic baby-related expenses (more on that below).
Consider adding 1 extra month of expenses as a psychological cushion.
These reserves buy calm.
2. We Verified Our Health Insurance Details (Not Just the Premium)
It’s important to verify the details of your health insurance plan before you go into childbirth (and add your new baby as a dependent).
As two self-employed individuals, we do not have a great plan – it’s expensive, so beyond just reviewing our ~$1200/mo premium, we also looked at:
Verifying our updated deductibles for 2026 (chose a low deductible plan for this year)
Ensuring that we have enough in the HSA/healthcare-specific savings to cover the Max Out-of-Pocket cost for Jillian
I booked (and already completed) a surgery I needed for early 2026 since we’re already likely to max out our plan – it can be a smart thing to “bunch” major medical expenses into a single plan year
Other things we did:
Chose a pediatrician for baby
Verified our expected costs with the OBGYN
Still pending, but soon we’ll verify expected “normal” costs with the hospital
We also plan to not pay the hospital bill until after everything has been processed by insurance, and we will have them verify an itemized bill to confirm we actually used everything they claim.
A pro-tip for otherwise healthy folks who think they’ll start a family in a few years:
Use a High Deductible Health Plan w/ an HSA to do some tax-advantaged savings in the years leading up.
Then switch to a low deductible plan for the year you expect to give birth – you can still use all those saved up HSA monies to cover the expenses.
Practical takeaway:
Confirm your max out-of-pocket.
Make sure your HSA (or other savings) has at least that amount available (or a plan to fund it).
Verify your hospital and OB are in-network.
Know when to add the baby to your plan (usually within 30 days).
Financial peace during delivery > scrambling with insurance forms at 2am.
3. We Reviewed Our Cash Flow Plan (Before the Baby Arrives)
One of the biggest mistakes I see?
Parents wait until after the baby arrives to adjust spending. We pulled up our monthly cash flow and asked:
Where will diapers go?
Increased health insurance premiums?
Childcare?
We created placeholders.
Even if the estimates aren’t perfect, the category exists.
That alone reduces stress.
What we’re budgeting for:
Diapers and wipes (we wish we were cloth diaper people but I just don’t think that journey is for us haha)
Increased grocery costs
Higher health insurance premium
Baby “stuff” (all the little things we’re not thinking of yet)
Future childcare (TBD depending on how we shift our work schedules)
We also asked a harder question: What spending categories matter less now?
For us, it might mean:
Fewer spontaneous weekend trips
Likely less dining out
More intentional entertainment spending
But we also took time to discuss what is still important to us – in our case, that’s international travel, which we still plan to do when baby is 5-6 months old (more on that below).
Practical takeaway:
Create baby categories now. Fund them before the baby arrives. Even small monthly amounts reduce sticker shock.
4. We’re Opening and Funding a 529 Plan Early
Yes, even before she’s born. It’s not a large amount, but just something each month to move the needle.
And here’s the important nuance: A 529 plan is not just “for college.”
It’s one of the most tax-efficient multi-decade investment vehicles available to families.
Why we’re funding it early:
Tax-free growth for education expenses
Many states offer tax deductions (check yours)
Long time horizon = compounding advantage
And here’s the big one most people don’t realize: Under current law, unused 529 funds can be rolled into a Roth IRA for the beneficiary (subject to limits and rules).
That changes the conversation.
Even if:
She doesn’t go to college
She gets scholarships
She chooses a nontraditional path
This account is still powerful. It’s optionality for her long-term.
Practical takeaway:
Open a 529 as soon as you have a Social Security number.
Start small if needed.
Let time do the heavy lifting.
Time is the real asset here.
5. We’re Organizing to Apply for the “Trump Account” ($1,000 for Babies Born 2025–2028)
If legislation proceeds as proposed, babies born between 2025–2028 should receive a government-funded $1,000 investment account.
Free invested dollars for a newborn? Yes please.
As we understand it today, babies born between 2025-2028 are eligible to apply for this “Trump Account”.
Family has the option to add $5,000/year to this investment account.
It will essentially function as a Traditional IRA.
Here’s what’s so powerful about this…If we just let it ride from her birth until her potential retirement (we’ll use the standard age 65):
At 8% annual growth, compounding for 65 years, $1,000 turns into $148,780.
If you added $83/mo ($1000/year) yourself, then it’s a whopping $1.9million.
Practical takeaway:
Stay informed. If your child qualifies, apply early and invest wisely, here’s the link —> https://form.trumpaccounts.gov/
6. We Set Calendar Reminders for Her Passport
This one isn’t strictly financial, but it’s deeply aligned with how we think about money.
We’re planning an international trip when she’s five months old (don’t worry, we booked refundable fares just in case things change lol). We plan to visit Portugal and France and take my mom along with us.
Planning for this means thinking through:
Passport application timelines
Birth certificate processing
Photos
Appointment scheduling
We set reminders now… Why?
Because the point of financial planning isn’t just stability.
It’s designing a life.
Money supports experiences.
And we want to still do what we love, even with a little one along for the ride.
Practical takeaway:
If you have a trip planned within the first year, calendar passport logistics now. Government timelines can move slowly.
7. We’re Preparing the Home (Which Is Financial, Whether You Admit It or Not)
Before buying anything new, we did something else:
We decluttered.
We’re:
Clearing our bedroom
Simplifying the home office
Reorganizing the kitchen (we used professional organizers for this one!)
Preparing the nursery intentionally
Clutter costs money.
It causes duplicate purchases.
It increases stress.
It reduces usable space.
Instead of impulse-buying every gadget marketed to new parents, we’re:
Starting minimal
Accepting hand-me-downs
Borrowing where possible
Waiting to see what she actually needs
Babies need safety and love… not 47 plastic accessories.
Practical takeaway:
Declutter before you purchase.
Delay non-essential buys.
Let real needs drive spending.
8. We Reviewed Life Insurance
If you have dependents, and are not yet financially independent, then you need coverage. But you can probably keep it simple (term life insurance is where to start).
In my work with clients, here’s what we think about that insurance covering:
Eliminating all debt (reduces cash flow pressure permanently)
Childcare and education needs of the children
Income replacement for the surviving spouse
Depending on the circumstances, retirement-savings replacement as well
We are reviewing:
Term coverage amounts
Policy lengths (do they get baby through to adulthood?)
Beneficiary designations
This is one of those “boring but life-changing” moves.
9. We Will Be Updating Our Estate Plan
If you have a child and no Will, that’s a gap.
We’ll be meeting with at trusted local Estate Planning attorney to:
Update our Will & name guardians
Establish a Revocable Living Trust to manage all assets flow
Confirm healthcare directives
Update both healthcare and financial Powers of Attorney
To me, estate planning is an act of love. If you’ve been on the receiving end of a messy estate after someone has passed, then you know what I’m talking about.
10. We’re Mentally Preparing for a Shift in “Enough”
This might be the most important one.
Babies don’t just change expenses. They change priorities.
We’ve talked openly about:
What success means in this season
How much work is enough
How much income growth is necessary
Where we’re willing to slow down
Because financial preparation isn’t just math.
It’s identity.
And we want this next chapter to feel aligned, not just financially successful.
Final Thoughts
Preparing financially for a child is about building flexibility.
For us, that looks like:
A slightly bigger emergency fund
Clear health insurance numbers
Intentional cash flow categories
Early investing vehicles
Organized logistics
A decluttered home
Updated protection and estate plans
All so that when she arrives…
We’re thinking about her.
If you’re expecting, don’t overcomplicate this.
Cover the big risks.
Create a buffer.
Invest early.
Design your life intentionally.
Everything else?
You’ll figure out as you go.
And that’s okay.