Welcoming a Child: Financial Considerations for Growing Families
Whew! If you’re reading this, you might be thinking about—or already welcoming—a new little one into your world. Having experienced these emotions myself, and having walked alongside many clients at the beginning of their family journey, I know there are so many questions and unknowns that come with this transition.
While some of that uncertainty is simply part of the natural nerves of stepping into a new chapter, bringing a bit of clarity to the situation can make a world of difference. I often find that when people see they’ve checked the major items off their list—or have a clear action plan to get there—it helps ease the worries. Then when the anxieties surface, they can take a breath and say, “We’ve taken care of that.”
Areas to Reflect On
In our Financial Planning Checklist: What to Consider When Having or Adopting a Child, we highlight key areas to help you move through this transition with clarity and confidence. A few of the most important include:
1. Updating your cash flow and household budget. Children bring new expenses—medical costs, childcare, diapers, and future education savings, to name a few. If one parent plans to stay home, consider how that change in income affects your short-term cash flow and long-term savings goals. It’s also worth checking your employer benefits—some offer childcare subsidies or extended parental leave that can help during this time.
2. Planning for health and medical needs. Be sure to add your child to your health insurance plan right away and confirm that your chosen pediatrician is in-network. If you have a Health Savings Account (HSA), this is a good time to revisit your contributions to help cover future medical costs tax-efficiently.
3. Reviewing your protection plan. With a new family member depending on you, it’s wise to review your life insurance coverage and ensure it reflects your family’s needs. This can provide lasting security and peace of mind.
4. Saving intentionally for the future. If you receive monetary gifts, consider opening or contributing to a 529 college savings plan. Even modest contributions early on can grow meaningfully over time. You might also start thinking about other future goals—like helping with a first car, a wedding, or simply providing a strong financial foundation for your child’s adulthood.
5. Revisiting your tax and estate planning. Check your tax situation to make sure you’re taking advantage of child or dependent care credits—and adoption credits if applicable. Also, update your estate plan, including
your Will, Trusts, and beneficiary designations, so your intentions are clear and your family is protected.
Bringing It All Together
Having or adopting a child expands your heart—and your financial world—in beautiful ways. Taking the time to review these areas now can create a foundation of confidence and calm, helping you focus on what truly matters: enjoying your growing family.
To make this process easier, we’ve created a comprehensive checklist of key financial considerations when having or adopting a child.
Download the “Welcoming a Child” Financial Planning Checklist.
Use it as a guide to bring more awareness, organization, and ease into this exciting season of life. Remember—planning isn’t about perfection, it’s about creating space for presence, connection, and joy as your family grows.
