Financial Wellness Checkup for New Moms

Start by creating a budget based on your current household expenses — and finding areas to trim if needed. Next, account for upcoming expenses — both one-time and monthly expenses.

Medical: Kids and doctor visits go hand in hand. No matter what stage you’re in, it’s important to find out what insurance covers — so you can factor it into your budget. Consider things like prenatal care and delivery, postpartum care, pediatrician visits and other check-ups.

Big-ticket items: From cribs, to twin beds, to the “big girl bed” she’ll ask for down the road — expenses are inevitable as your family grows. Saving for these big-ticket items, browsing deals and sticking to budgets can help with your financial peace of mind.

Recurring expenses: Diapers, formula, food, clothes — anticipating recurring expenses, no matter what stage you’re in, can help you breathe easy.

And don’t forget to account for any upcoming changes in income. For example, if you decide to put your children in daycare, make sure your updated family budget reflects this. While this seems like a very obvious tidbit, it’s easy to overlook these types of things when you’re busy with the excitement of parenthood.

Looking for easy-to-use budgeting tools? Check out our calculator!¹

Another important step to tackle head-on is prioritizing any debt you may have — especially high-interest debt. Freeing up space in your budget can help provide financial peace of mind. However, this shouldn’t come at the expense of depleting your bank account.

Coming up with a goals-driven strategy that focuses on balance is key. And your updated budget will serve as your roadmap. If you only have space to make the minimum payments, so be it. You don’t have to do everything at once — just pointing yourself in the right direction is important.

An emergency fund is always important to have. Ideally, you want to shoot for three to six months’ worth of living expenses, but there are many factors that play into this, like job security, number of incomes, and debt — to name a few.

And while the end goal of this fund can seem daunting, starting small and adding several tactics to your repertoire can make it easier. 

Having part of your paycheck automatically sent to your savings account is an efficient and effortless way to start building your fund. Whether it’s $50 or $500 a paycheck, that money will add up. 

Putting your fund in a high-yield savings account is another great way to grow your money effortlessly. The longer it’s there, the more interest accrues — and the higher your returns.

While the thrill of treating yourself with that holiday bonus is tempting — it doesn’t beat the relief of being able to cover unexpected expenses. Treat your future self to financial security and stash away any windfalls.

This is a great method if you can comfortably do it. Whenever your new paycheck hits, transfer some or all of the remaining balance from your previous check into your emergency fund.

To learn more about these methods, check out our helpful article: 6 Simple and Creative Ways to Build Up Your Emergency Fund.

Set yourself up for success by finding out what your insurance will cover. Even with a robust plan, you can still pay a lot in out-of-pocket costs for prenatal care, delivery, postpartum care, braces, wisdom teeth removal — you get the picture. And getting an estimate for these costs and factoring them into your budget can help you move forward with a plan.

When your bundle of joy arrives, don’t forget to add them to your or your partner’s plan. You typically have a 30-day window to do this, but get the ball rolling as early as possible and figure out what you need to do prior to their arrival. From day 1, until your child’s on their own plan, anticipating their health needs will be important as your family switches health plans.

If you or your partner are taking parental leave, consider the insurance implications. Make sure you’re covered by the Family and Medical Leave Act. This guarantees you keep your insurance policy for up to 12 weeks while out of work. The FMLA can also protect you and your family during other medical leaves.

Also, think about opening or contributing more to a pre-tax health savings account (HSA). This can cover a vast amount of healthcare costs that come with motherhood, regardless of where you are in your journey:

• OB/GYN visits
• Dental treatment
• Braces
• Vision care

Consult your tax preparer for the following credits you may qualify for:

• Child Tax Credit
• Child and Dependent Care Credit
• Earned Income Tax Credit
• Adoption Tax Credit