Faith & Finance - New Baby, New Budget: Your Financial Checklist for Parenthood

"Behold, children are a heritage from the Lord, the fruit of the womb a reward." – Psalm 127:3

Children are a precious gift from God—a reward and a heritage to be cherished. With the incredible joy of welcoming a newborn also comes great responsibility, especially in managing finances wisely.

To help new parents navigate this season, here’s a New Baby Financial Checklist to ensure you’re covering all the essential financial bases.

1. Add Your Newborn to Your Health Insurance

In the whirlwind of 2 AM feedings and endless diaper changes, don’t let updating your health insurance slip through the cracks. Most plans allow a 30-day window after birth to add your baby to your policy.

While you’re at it, double-check that your plan covers:

• Pediatric care
• Vaccinations
• Emergency hospital visits

Thankfully, welcoming a new baby qualifies as a “life event,” meaning you can make necessary adjustments to your plan.

2. Secure Life Insurance Coverage

Life insurance isn’t for the baby—it’s for you. Ensure you have a term life policy that provides at least 10 times the primary breadwinner’s salary in coverage.

Don’t overlook the caregiving spouse, either! If something were to happen to them, the cost of childcare could be significant. Securing life insurance ensures financial stability for your growing family.

3. Update Your Budget

It’s time to add a “Baby” category to your budget. When estimating how much to allocate, consider these new expenses:

• Diapers and wipes
• Baby clothes (that seem to shrink overnight!)
• Baby food and formula
• Medical expenses

These costs add up quickly. You may need to adjust other budget categories to stay on track, but planning ahead will reduce financial stress down the road.

4. Create or Update Your Will

A will isn’t just about distributing assets—it’s about securing your child’s future. One of the most critical decisions in your will is naming a guardian for your child in case both parents pass away.

While this can be a difficult decision, it’s essential to have a plan in place. Pray for wisdom and choose someone who shares your values and would provide loving care if the unthinkable happens.

Proverbs 13:22 reminds us: “A good man leaves an inheritance to his children’s children…” This inheritance isn’t just financial—it includes faith, wisdom, and values that shape their future.

5. Build or Strengthen Your Emergency Fund

If you don’t already have an emergency fund, now is the time to start. Aim for 3 to 6 months’ worth of living expenses in savings.

A new baby comes with many surprise costs, from medical bills to strollers that cost more than you expected. If a financial emergency—like a job loss—were to happen, having this cushion would be a huge blessing.

6. Update Your Taxes

With the arrival of your baby, yo