Welcoming a new baby is a lifechanging experience for parents and other family members alike. Amid the excitment, many families find it difficult to navigate the complexities of finanical planning that come with this major life change.
Mandy Kelso, Head of Financial Education for TD Bank, and mother of four children, offers these nine tips to help new parents with these challenges.
- A baby registry will get you much-needed supplies from friends and family. But a local moms’ group on social media can be a great way to find locally used items, especially for clothes or toys needed for a short time, since babies grow quickly!
- If family members want to gift your baby money, open a Uniform Transfers to Minors Act (UTMA) account, which will help you safely manage those funds until your child is an adult.
- Find out if your employer offers a Flexible Spending Account (FSA) that you can contribute to before the baby arrives and then use that money for medical expenses, including over-the-counter items that you will need for both you and your baby. Add any medical items not covered through an FSA to your baby registry.
- Research and purchase life insurance, update your will, and think about who could take care of your children in the event of an emergency. Talk to friends and family about what would happen in unforeseen circumstances and check to see if the insurance policy has enough to provide for your child until they are 18 years old.
- Interview and decide on a pediatrician and confirm they take your health insurance. Call the pediatrician’s office to schedule your baby’s one-, two-, and three-month wellness check-ups and don’t forget to add them to a shared calendar.
- If you plan on putting your baby in childcare and returning to work, ask your employer if they offer a dependent-care flexible spending account, which can let you pay for childcare with pre-tax dollars. Next, find a daycare you like and once you’ve confirmed the rates work for your family, be sure to incorporate the new recurring expense in your budget.
- College may be a long way off, but saving early is key. Talk to a financial advisor about opening a 529 plan, setting aside recurring funds to contribute and grow that account.
- Make sure your baby’s birth certificate is stored in a safe place, such as a safety deposit box, home safe or fireproof lock box. Add other important documents like your marriage license, life insurance policy, an updated will, and other information you want to keep protected.
- Family and friends may want to share photos of your new bundle of joy on social media but get on the same page with what you’re comfortable sharing on public sites so you protect your baby from cyber fraud and financial identity theft.
Unfortunately, there have been many cases where fraudsters are able to use social media posts as a starting point to find out a child’s Social Security number, name, address, or date of birth. They can then use the stolen information to open credits cards and take other financial actions.
For more on personal finance topics
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We hope you found this helpful. This article is for informational purposes only and is based on information available as of June 2025 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.