Financial Checklist For Pregnancy

Updated 05/28/26 | Having a baby is life-changing, and expecting an infant can be overwhelming and wonderful. For many, learning that you will be a parent brings the future into sharper focus. All of a sudden, you realize it’s time to start planning for the changes that are coming your way.

Financially, expectant parents face a range of expenses from medical care and baby equipment all the way to estate planning. Navigating pregnancy costs requires a bit of an investment and, more than likely, professional assistance. 

Below, we cover what to plan for financially and what to review before the baby arrives.

Medical Planning to Take Care of Before the Baby is Born

Before you bring home your new baby, there are a few medical planning activities to take care of:

• Hospital: Pre-select the hospital facility you’re planning on using. It’s a good idea to do a walk-through.
• Legal Paperwork: Make sure you have a Power of Attorney (for Healthcare) and Healthcare Directive documents on file with your provider.
• Pediatrician: Select a pediatrician and get on a waiting list if applicable.

Our next topic (insurance) overlaps with your medical planning, but there is much to cover, so we dedicated a section to it.

Medical Insurance

UW Health reports that the average cost of having a baby in the United States in 2025 was approximately $18,865. LendingTree estimated the total cost of raising a child from birth to 18 to be $310,605. 

The cost varies and depends on many factors: where you live, your insurance coverage, the prenatal treatments/tests you may need, and how you deliver. For example, the average C-section costs $2,800 to $12,000 with insurance or $15,000 to $38,000! Make sure to examine your health insurance to understand what costs you will be responsible for.

What is the best way to estimate the costs associated with pregnancy?

Call your insurance provider! It’s essential to contact your health insurance provider to find out the details of your coverage and ask questions that will help you estimate the charges for:

• Prenatal care
• Co-pays/deductibles
• Out-of-pocket expenses
• Hospital stay
• Emergency costs
• Post-natal care

Determining these costs in advance allows you to get the most out of your insurance and extra savings from FSA/HSA accounts. Your health insurance provider can also provide a list of in-network providers, required pre-registration, and/or possible restrictions specific to your coverage.

When does your baby obtain medical insurance?

Now is also a good time to confirm when the baby will be covered under the policy and what steps you will need to take to have them added. Typically, there is a 30-day period for enrolling a newborn. You may have to wait until your company’s annual open enrollment period if you miss it. Missing open enrollment could mean you are exposed to larger out-of-pocket costs if your child needs care.

Pre-baby Estate Planning

There are five essential items new parents need to consider when estate planning:

1. Health Care Proxy and Executing a Power of Attorney
   These are considered “living documents” and ensure that another adult has the power to make decisions for an adult who is incapacitated.
2. Naming a Guardian and a Custodial Trustee
   These two individuals will work as a team; one to care for the child and the other to care for your child’s finances.
3. Creating or Updating A Will and Possibly adding a Trust
   These documents outline your wishes after you pass. Without an updated will, an estate may be subject to the court-supervised probate process, which can introduce administrative delays and potential expenses depending on your jurisdiction.
4. Evaluating Life Insurance Coverage
   Purchasing or possibly raising coverage on life insurance policies is critical for both parents. There is a dependent who needs to be cared for, and a spouse who needs the security of added coverage should the unthinkable happen.
5. Updating Account Ownership and Beneficiary Designations
   Proper beneficiaries will ensure that assets are assigned according to your prepared documents.

The cost for preparing these documents pales in comparison to the comfort of knowing that your loved ones are protected and well cared for. An estate plan is an essential safeguard for the care of your new family.

Approximate costs of estate planning range from $1500 to over $4,000. Depending on the complexity of the estate and local regulations, legal and court fees can accumulate significantly. Proactive estate planning can help mitigate these potential frictions.

Maternity/Paternity Leave

Another important factor to consider is time off from work: maternity/paternity leave. The FMLA, or Family and Medical Leave Act, is a federal law requiring employers to provide at least 12 weeks of unpaid leave for expectant mothers and fathers. This law guarantees you will have a job to return to, but it does not guarantee that you will have an income during your time off.

During your pregnancy, contact your HR department for help determining company policies regarding paid time off and FMLA leave. Some employers may not fall under the FMLA requirements, yet others may even offer a form of short-term disability or other forms of paid leave for expectant parents.

Like everything else, it pays to ask and perform due diligence in finding out what benefits will be available. Periods of lost or reduced income are costs that no family wishes to face unexpectedly.

Increased Expenses

As your family grows, other areas in your life also need to grow. It’s not unreasonable to include the cost of larger living spaces or perhaps a bigger vehicle in the price of pregnancy. A one-bedroom apartment or a two-seater sports car just aren’t practical for family life. So, depending on your situation, it may be time to make some lifestyle changes before Baby arrives.

Believe it or not, that tiny little bundle needs space (a lot of space) for all of their stuff. However, don’t let the fact that you will have a baby destroy your financial planning. Before making larger purchases, consider how those purchases are going to affect your future finances and the well-being of your family. Frequently splurging on expensive items and neglecting your financial plan (such as saving and investing) is not the best way to provide a great life for your family.

And don’t forget about daycare! Sign up as early as possible and understand the cost. In Washington State, infant care can run you $20,370 (and climbs from there, eep! Learn more here).

Baby Care and Immediate Expenses

According to BabyCenter.com and their baby-cost-calculator, infant care costs over $20,000 in the first year. This number is for a stay-at-home parent, with a breastfed baby, who is purchasing disposable diapers. This number also includes a comprehensive list of the one-time costs of infant items such as cribs, clothing, and strollers. It also allows you to calculate different variables, such as daycare vs. nanny, and diaper service vs. disposables, which helps to personalize the cost and causes it to vary widely.

Technically, baby care is a cost that would be incurred in the infant’s first year. Since most of these decisions and purchases need to be in place before the baby arrives, they really should be considered a cost of pregnancy.

If you want to crunch the overall numbers, recent studies demonstrate that over 18 years, costs for raising one child are approximately $297,674.

Before Baby Expenses for Mom

We also have to consider mom’s needs and specifically, her wardrobe. Maternity clothes are a must for keeping mom feeling and looking her best. The cost will vary depending on mom’s career, needs, and preferences, but she will probably need to spend a fair amount on clothes and shoes. She’s growing a whole person, after all! 

Pregnancy yoga, pregnancy massage, pregnancy chiropractors, doulas, etc., may also be essential costs for Mom’s well-being. This is in addition to all of the necessary, and sometimes unplanned, prenatal and pregnancy expenses. These costs may be considered elective and not covered under health insurance, but may qualify for FSA/HSA expenditures.

How Should Your Re-evaluate Your Budget for a Baby?

Increased expenses mean it’s time to examine your budget and increase your emergency reserve. Aside from one-time costs for baby and mom’s pregnancy essentials, your monthly payments will also increase. During pregnancy, start to investigate these costs and develop a plan.

Some questions to ask:

• Has our rent/mortgage increased?
• What is the cost of childcare?
• How much college savings should we be investing?
• How much do we expect our food budget to increase?
• Will our insurance premiums change?
• What items are considered “eligible expenses” for HSA and FSA accounts?

With some forethought, you and your partner can have a reasonable budget before Baby comes home from the hospital.

A note on eligible expenses for HSA/FSA accounts: the list is far too long to include here, and there are probably expenses you may find surprising. Ask your insurance company for an eligible cost list or speak with a financial advisor who specializes in navigating insurance.

What are Tax Considerations When Having a Baby?

During pregnancy, it may be worthwhile to schedule an appointment with your tax advisor to discuss the tax consequences of having a baby.

Here are some things to consider:

• Updating your W-4 at work. Adding a dependent to your deductions could result in increased take-home pay. However, consider how your tax burden may change, come April.

• Obtaining a Social Security Number for your child. To claim your child as a dependent on your taxes, you must register them for a SSN#. This can be done before you leave the hospital when filling out your child’s birth certificate.

• Learn about tax credits and deductions. Make sure to stay up-to-date on the current tax credits by checking the IRS website.

• • For 2025, the tax credit for a new baby is up to $2000 per qualifying child.
  • Up to $1,700 of the tax credit is refundable.
  • You may also be eligible for earned income credits, childcare credits, adoption credits, and college savings benefits.
  • Generally, expanding your family may qualify you for certain tax deductions and credits designed to reduce overall tax liability, subject to income thresholds and IRS guidelines.

• Will you have a nanny? You are the nanny’s employer and must report this on your tax documents.

• Will your child have income from investments? Also known as the kiddie tax, you must report this on your tax forms.  

Child Tax Credit
For the Child Tax Credit, the child can be your child from birth, adoption, a foster child, or even a stepchild. Your income level is capped at $200,000 if single and $400,000 if married filing jointly. The child must be under 16 before December 31st of the year the credit is being solicited.

Childcare Credit
The IRS states that if you paid someone to care for your child or other qualifying person so you (and your spouse if filing jointly) could work or look for work, you may be able to take the credit for child and dependent care expenses. 

Adoption Tax Credit
Yes, there is a credit for that! For the 2026 tax year, the Adoption Tax Credit offers a maximum credit of $17,670 per eligible child for qualified adoption expenses. 

Savings and Investments

Planning for a baby is preparing for the future. As mentioned above, be careful not to completely disregard your saving and investing plans. One of the best ways to protect your family is to plan for their financial future.

Pregnancy is an ideal time to re-evaluate your portfolio. Are your investments too risky? Too conservative? Is it time to change contribution amounts?

You will undoubtedly need to continue saving and investing for your retirement. But the future holds many things for your new family: college, braces, cars…A financial advisor can help develop a plan that’s right for you. They will also be able to advise you on savings strategies and products for minors.

Here are some saving strategies for a new baby to explore:

1. Open a savings account
2. Open a Roth IRA
3. Look into 529 college plans
4. Opt for a Coverdell education savings account
5. Consider prepaid tuition plans
6. Open a Uniform Gifts to Minors Act or UTMA account
7. Set up a Trust for education
8. Invest in treasury bonds 

A Quick Overview of Some of the Lesser-known Saving Options

There are several nuances to these savings vehicles, so reach out to your financial advisor to see what will be best for you and establish a plan that allows you to maximize savings.

529 College Plan: 529 plans are flexible, tax-advantaged investment accounts that help you pay for your child’s education and offer tax-free growth, withdrawal potential, and estate tax benefits. There are two types of 529 plans, according to the U.S. Securities and Exchange Commission:

• Prepaid tuition plan allows you to purchase college credits at current prices for your child. 
• Educational savings plan allows you to open an investment account focused on growth in the child’s early years and then shifts to a more conservative portfolio as the child nears college age. The education savings plan can receive contributions and “gifts.” Washington state allows for contributions up to $500,000.

UGMA/UTMA: This account type offers a way for minors to own securities and eliminates the need to hire an attorney to prepare trust documents. The parents act as fiduciaries and must follow fiduciary standards, and the money in the account is part of the parents’ taxable estate. Any income generated from this account is subject to the “kiddie tax” and must be reported on your tax documents.

Coverdell Account: This account type is an after-tax savings account, similar to a Roth. Withdrawals made on this account are tax-free. The yearly contribution limit is currently $2,000

Pregnant? Schedule Some Time with Your Financial Advisor

With careful planning, you can start your family on the right financial path. Schedule appointments during your pregnancy with tax, law, and financial professionals. When the baby comes, you can focus on the essential thing: your family.

After all, an addition to the family may come with added costs, but being a parent can make your life richer in ways you never thought possible.

As always, you don’t have to navigate all of these complex concepts on your own. Make an appointment with Northern Lights Advisors to kickstart updating your financial planning for your new baby.

Frequently Asked Questions About Financial Planning for a New Baby

How much should we budget for a new baby in the first year?
Costs vary widely depending on childcare, medical expenses and lifestyle choices, but many families spend tens of thousands of dollars during the first year alone. Planning ahead for healthcare, daycare and one-time purchases can help reduce financial stress once the baby arrives.

When should we update our estate plan after having a child?
Ideally, before the baby arrives or shortly afterward. New parents should review wills, guardianship designations, powers of attorney, healthcare directives and beneficiary designations to ensure their child is protected if something unexpected happens.

Should we start saving for college right away?
For many families, yes. Starting early gives college savings accounts like 529 plans more time to grow tax-free. Even smaller contributions made consistently over time can add up significantly by the time your child reaches college age.

How can my financial advisor help us prepare financially for a baby?
A financial advisor can help you update your budget, evaluate insurance coverage, plan for childcare and build a long-term savings strategy for your growing family. Northern Lights Advisors works with high-earning individuals and families to create financial plans that balance immediate expenses with long-term goals like retirement, college savings and estate planning.

Northern Lights Advisors is a fiduciary, fee-only Registered Investment Advisor (RIA) firm based in Seattle, Washington. The information in this article is not intended as tax, accounting, or legal advice. Read the full disclosure here.