Finance

Money stress is nervous system stress. A plan you make together before the baby arrives takes a lot of pressure off the months after.

Illustration of a couple embracing, with a glowing baby brain and icons for food, movement, sleep, love, calm, and genes around them

Conversations to have early

Leave

Find out what your workplace offers and what your state provides. Federal FMLA offers eligible employees unpaid, job-protected leave, and some states, including Washington, run paid family leave programs.

Insurance

Learn your deductible, out-of-pocket maximum, and how to add the baby. In the US, a birth usually opens a special enrollment window, so check your plan's deadline.

Childcare

Waitlists can be long. Look early, and talk about who will cover care if someone gets sick.

A cushion

Even a small emergency fund lowers stress. Many planners suggest aiming over time for enough to cover out-of-pocket birth costs plus a few months of living expenses. Decide together what counts as an emergency.

Costs across the journey

Just to give you an idea. These are rough US averages for planning. Costs vary widely by state, country, insurance, and family choices, and prices change every year, so check current information with your insurer, employer, and local providers.

The first year, month by month

Costs rise and fall as your baby grows. Tap a stage to see what tends to come up.

Studies of the cost of raising a child vary widely. One 2026 LendingTree analysis put the average at about $17,000 a year, or more than $303,000 to age 18, with child care a major expense in the early years. Your costs may be far lower or higher.

What a baby can cost

Numbers can feel overwhelming. They're here to help you plan, not to scare you. Costs vary a lot by where you live, your insurance, and your choices.

The birth

Costs depend on your insurance, your state, and whether you have a vaginal or cesarean birth. With insurance, most of the bill is covered; check your deductible and out-of-pocket maximum early. Twins and complications cost more.

Medicaid

Medicaid pays for about 4 in 10 US births, and most states now cover parents for a full year after birth. Income limits are higher during pregnancy than for other adults, so check even if you didn't qualify before.

Gear

Hand-me-downs and used items save a lot. Two exceptions: buy car seats new or from someone you trust (they expire and may be damaged in crashes), and make sure cribs meet current safety standards.

A typical year in the first two years

About $12,680 a year for a middle-income two-parent family, based on the USDA's last report (2015 dollars). Costs are higher today with inflation. Child care is often the biggest expense after housing, so sibling discounts, family help, and flexible work can make a real difference.

Money stress is real stress. Financial strain is a known risk factor for depression in pregnancy and after birth. If money worries keep you up at night, you're not failing; it's a sign to reach out. Programs like WIC, Medicaid, and community health centers exist for exactly this. Free and low-cost help

Benefits, insurance, and savings for a new baby

For information only, not tax or financial advice. Tax laws change often and differ by state and country. Check IRS.gov or talk with a tax professional for your situation. Figures below are for US federal rules as of the 2026 tax year.

After-birth money checklist

Tax credits

Child Tax Credit

Up to $2,200 per child under 17, with up to $1,700 refundable even if you owe little or no tax. The full credit is available up to $200,000 in income ($400,000 for married couples filing jointly). To get the refundable part, you need at least $2,500 in earned income. You (or your spouse, if filing jointly) and your child each need a Social Security number valid for work, issued by your tax return's due date, so apply for your baby's number soon after birth. Claimed on Schedule 8812 with Form 1040; you may be able to claim it even if you don't usually file. IRS details

Pre-tax and penalty-free options

A Dependent Care FSA through your employer lets you pay for child care with pre-tax dollars, and a Healthcare FSA covers copays and prescriptions. Within a year of a birth or adoption, each parent can take up to $5,000 from a retirement account without the 10% early-withdrawal penalty, though income tax still applies, so weigh it carefully.

Other credits to know

The Credit for Other Dependents (up to $500), which can be claimed for dependents with an ITIN when the Child Tax Credit doesn't apply, the Child and Dependent Care Credit for daycare costs, the Earned Income Tax Credit for lower and moderate incomes, and the Adoption Tax Credit for adoptive families. Free tax help is available for qualifying families.

Health insurance for your baby

Coverage isn't automatic

Many plans cover a newborn only for the first 30 days. A birth is a qualifying life event, so you can add your baby outside open enrollment, but deadlines are short: usually 30 days for employer plans and 60 days for Marketplace plans. Don't wait for your baby's Social Security card; the clock starts at birth, and you can usually add the number later. It's also a chance to rethink your whole plan, since babies have many checkups in the first year.

Medicaid and CHIP

Babies born to parents covered by Medicaid are generally covered for their first year. The Children's Health Insurance Program (CHIP) offers low-cost coverage, including checkups and vaccines, with year-round sign-up.

Savings accounts for a child

AccountKey featuresThings to know
Trump AccountA federal $1,000 starter deposit for eligible US-citizen children born 2025 through 2028. Family and others can add up to $5,000 a year, invested in US stock index funds.Opened by filing IRS Form 4547 (with your tax return or online). Follows retirement-account rules once the child turns 18.
529 education planEarnings grow tax-free when used for qualified education, including college, trade school, and some K–12 tuition. Many states offer a state tax deduction.Plans are run by states; compare fees and your own state's benefits. Unused money can usually go to another family member, and some can later roll into the child's Roth IRA within limits. Some states also offer prepaid tuition plans.
Coverdell education savings accountTax-free growth for education from kindergarten through college, including tuition, books, and tutoring.Contributions are capped at $2,000 a year per child, and income limits apply.
Custodial account (UGMA/UTMA)No contribution limits and can be used for any purpose that benefits the child.Fewer tax advantages, the money legally belongs to the child, and the child gains full control at 18 to 21, depending on the state. It can also count more heavily against college financial aid.
Children's savings accountA simple bank account managed by a parent or guardian.Look for no minimum balance, no fees, and a good interest rate.

Many families combine accounts. A financial or tax professional can help you decide what fits your goals.

Protecting your family

It's not easy to think about, but a few documents give real peace of mind.

A will and a guardian

A will is where you name who would raise your child if something happened to you. For many parents, this is the single most important step after a birth.

Beneficiaries and powers of attorney

Update beneficiaries on life insurance and retirement accounts, and name who can make financial and medical decisions if you can't. A trust can add control, especially for larger estates.

Insurance that protects income

Check whether your life insurance would replace lost income, child care, and debts, and consider disability insurance, since your ability to earn is often your biggest asset.

Your rights at work (US)

Protection from discrimination

You can't be fired, passed over, given lesser assignments, or forced onto leave because of pregnancy, childbirth, or a related medical condition.

Reasonable accommodations

Under the Pregnant Workers Fairness Act, if your employer has 15 or more employees, you can ask for changes like extra breaks, a water bottle or snacks, a stool, schedule changes or telework, help with lifting, or time off for appointments and recovery. Learn more

The right to pump

Under the PUMP Act, most employees have the right to reasonable break time and a private place, other than a bathroom, to pump milk at work for up to a year after birth. Learn more

More help for families

Food

WIC for pregnancy through age 5, and SNAP for groceries when money is tight.

Housing and energy

HUD housing counseling and LIHEAP for help with energy bills.

Child care

Help paying for child care, plus tips for visiting and choosing a program.

Children's coverage

InsureKidsNow.gov or 1-877-KIDS-NOW for Medicaid and CHIP. If you're enrolled, keep your contact information current and watch for renewal letters.

Cash assistance

Temporary Assistance for Needy Families (TANF) offers time-limited cash help for eligible low-income families through your state. Some states have their own programs too. Some cities and tribal communities also run guaranteed-income pilots for new parents; ask locally.

Example: Washington State

The Pregnant Women Assistance program offers up to $450 a month in cash to eligible low-income pregnant people who don't qualify for TANF. Apply through DSHS online, by phone at 877-501-2233, or at a local office. Applications come in many languages.

Where to start

Most programs run through your state's health and human services department. In the US, dialing 211 connects you with local help for food, housing, utilities, and more.

Outside the US

Every country has its own supports. Your local health ministry, midwife, community health center, or social services office can tell you what's available where you live.

Source: US Department of Health and Human Services and Washington State DSHS. Programs, amounts, and eligibility vary by state and country, and change over time, so check current details.

Essentials, not extras

Babies need less than stores suggest. Check off what you have; your list stays in this browser. Borrowed and secondhand items are great, except car seats and sleep spaces, which should meet current safety standards.

Safe sleep basics

Every sleep: alone, on the back, on a firm flat mattress with only a fitted sheet. No pillows, blankets, bumpers, or weighted sleep sacks. Room-sharing without bed-sharing is recommended for at least the first 6 months.

Bouncers and swings

Handy for awake, supervised time while you're nearby. If your baby falls asleep in one, move them to their flat sleep space.

Fever in a newborn is urgent

For a baby under 3 months, a temperature of 100.4°F (38°C) or higher is a reason to call your pediatrician right away, day or night. A rectal thermometer gives the most accurate reading.

Shop smart

Research big items like the car seat and stroller for your needs and budget. Keep clothes simple. Buy one or two bottles and pacifiers to test before buying a set. Toys and gadgets can wait; every baby is different.

Clean bottles

Wash bottles after every use with hot soapy water and a bottle brush. The CDC also recommends sanitizing at least once a day for babies under 3 months, born early, or with weaker immune systems, for example by boiling for 5 minutes.

Changing and bath safety

Keep one hand on your baby when they're on any raised surface, or change them on a mat on the floor. Test bath water with your wrist or elbow, and never leave a baby alone in water, even for a moment.

Umbilical cord care

Today's advice is simple: keep the stump clean and dry, fold the diaper below it, and let it fall off on its own, usually in 1 to 3 weeks. Rubbing alcohol is no longer recommended. Call your pediatrician if you see redness spreading, pus, or a bad smell.

You can probably skip

Changing tables, wipe warmers, bottle warmers, baby shoes, diaper pails, and too many outfits. A regular sink or tub works for baths, and any backpack can be a diaper bag. Ask what your hospital sends home, and pass things along when your baby outgrows them.

Car seat check

Rear-facing, installed correctly, and never secondhand from a stranger. Many fire stations and hospitals offer free installation checks by certified technicians.

Monthly baby budget sketch

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This is a planning aid, not financial advice. A financial professional can help with your specific situation.

You don't have to wait until it's bad

These free US lines are for parents, partners, and anyone supporting them, during pregnancy and after.

Outside the US, contact your local emergency number or health service. If someone has confusion, hallucinations, or thoughts of harming themselves or the baby, call 911 or go to an emergency room.

Physical warning signs like chest pain, trouble breathing, a severe headache, or heavy bleeding during pregnancy or in the year after birth also need care right away. See urgent warning signs

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