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If you’re a mom-to-be, let me first wish you congratulations!

Motherhood has its ups and downs, but few things (in my opinion) are more rewarding than welcoming a new life into your world. 

It’s a major life event to welcome a new baby, and it’s important to be financially prepared for the inevitable life changes.

This is especially true for career-driven moms, who may need to take time off work or change work arrangements to care for a new child.

In this article, I’m going to give you 14 tips to help you financially prepare for a baby.

9 Tips to Help a Mom-To-Be Financially Prepare for a Baby

Having a baby is a wonderful life event, but it can also be a financial challenge. If you’re a career-driven mom, you may be wondering how you can financially prepare for your new arrival. 

Here are some tips on how a career-driven mom-to-be like you can financially prepare for your new baby:

1. Have a money talk with your partner (if you’ll be co-parenting). 

Ideally, before you even start trying to conceive, adopt, foster, or otherwise welcome a new child into your home, sit down with your partner and talk about your financial goals for the future. 

You’ll want to discuss how you’ll pay for your baby’s healthcare, childcare, and any other related expenses.

You’ll need to factor in additional monthly expenses like diapers, childcare, and baby clothes, among any other baby essentials. While it’s totally possible to find low-cost items, these things will increase your bottom line so it helps if you can plan ahead.

2. Create a new budget. 

Once you have a better understanding of how your expenses may increase, create a new budget that takes that cost into account. This will help you track your spending and make sure you’re on track to reach your goals.

3. Build your emergency fund. 

An emergency fund is money that you set aside for unexpected expenses, such as a medical emergency or a job loss. If at all possible, aim to have at least three to six months of living expenses saved up in an emergency fund.

4. Review your health insurance. 

If you’re planning to take time off work after your baby is born, make sure you understand your health insurance coverage. Some plans offer short-term disability benefits that can help you pay your bills while you’re out of work.

5. Review relevant employer benefits.

Your employer may also offer paid maternity or paternity leave. Have a conversation with HR if you need better clarity on what options are available to you.

6. Check in on your life and disability insurance. 

Make sure you have adequate life and disability insurance in place. This will protect your family financially if something happens to you.

7. Make a plan for debt. 

If you have any debt, make a plan to pay off what you can before you have a baby. This will free up more money in your budget to spend on your child.

While it’s probably not practical to try to pay off everything, anything you pay off will free up money you’d otherwise have tied up. Prioritize paying off debt (along with paying into your emergency fund) where practical.

8. Start saving for your child’s future. 

If it’s a priority, you can start saving for your child’s future by opening a 529 plan or a UTMA/UGMA account. These accounts allow you to save money tax-free for your child’s education.

Psst… if you need some ideas to help you start investing for your child’s future, I recommend reading the following books:

The Bogleheads’ Guide to Investing (a good intro to investing book)

A Beginners Guide to the Stock Market (a more detailed and complex intro to investing book)

9. Don’t forget about your own retirement. 

It’s important to continue saving for your own retirement, even after you have a baby. You can do this by contributing to your employer-sponsored retirement plan or by opening an IRA.

Financially preparing for a baby can be a challenge for a mom-to-be, but it’s important to start as early as possible. By following these tips, you can set yourself up for financial success as a career-driven mom.

5 Additional Tips

If you’re committed to maximizing your financial preparation prior to welcoming your new child, consider the following tips:

1. Make sure you understand what maternity and paternity benefits are available to you. 

Some employers offer paid maternity leave, while others offer unpaid leave or a combination of paid and unpaid leave.

2. Research childcare options in your area. 

Childcare can be expensive, so it’s important to find an option that fits your budget.

3. Consider working from home or part-time after you have your baby. 

This can give you more flexibility to care for your child and still work.

4. Keep track of your financial goals.

Whether you’re paying off debt, saving, or doing anything else to financially prepare for a baby, it helps to keep track of your progress toward your goals.

While there are numerous tools that offer great support, I recommend using ClickUp.

5. Don’t be afraid to ask for help. 

As a mom, it’s easy to believe that you need to do it all, but you don’t. In fact, if you can adopt the mindset as a mom-to-be that you don’t need to do it all you’ll be far more prepared for success.

There are many resources available to help you financially prepare for a baby. Talk to your family, friends, or financial advisor for help. 

I’d also highly encourage you to network with other career-driven moms. Talking to other moms who have been through it can be a great source of support and advice.

Conclusion

Remember, you’re not alone in this. There are many other career-driven moms who have successfully balanced their careers and families. With careful planning and preparation, you can too.

Having a baby is a wonderful experience, and it’s important to be financially prepared for the journey. By following these tips, you can set yourself up for financial success as a career-driven mom-to-be.

Think getting a handle on your finances as a mom-to-be will FIRE Your Career? Check out the posts page for more ways you can FIRE Your Career and achieve financial freedom.

FIRE Your Career: Achieve Financial Freedom Through Your Career & Spend MORE Time Doing What You Love.

Products I recommend in this article:

ClickUp (my recommended goal-tracking and project management tool)

The Bogleheads’ Guide to Investing (a good intro to investing book)

A Beginners Guide to the Stock Market (a more detailed and complex intro to investing book)