Are you planning for your baby, financially speaking? Besides buying the crib and taking parenting classes (don’t forget infant CPR!), new families need to get their finances in order before welcoming a little one into the home. This is especially important if you’re an LGBTQ family who is going through surrogacy or adoption—two paths that already add extra expense to the process!

This is one of those posts that hits very close to home, as my spouse and I have just welcomed our first child, Ben, into the world via our surrogate Katelyn! So believe me when I say I empathize with the work it takes to financially plan for a baby. While it may seem like a stressful thing to add to a never-ending to-do list, I promise that trying to wrangle finances after the baby’s arrival will be 100x harder. 

What Do You Need To Live Comfortably?

Your main goal should be that you and your family live as comfortably as possible while transitioning into your new life together. Can you afford to live the same way you’ve been living, but with a child? Most likely, you’re going to have to make some modifications to how you spend your money on those extra life perks. If you haven’t already, get a handle on your cash flow. In this case, it’s ok to take some time off of saving money, especially if it means enabling a life where you can be more present and grounded with your baby. And speaking of savings…

Do You Have Enough Money In Savings?

This is something you definitely want to have settled before your baby comes. Work toward having a minimum of 3-6 months of cash in the bank. This is money outside of your 401k. If you’re a queer family who can plan in advance due to IVF or other fertility treatments, build up a safety net if you don’t already have one. The last thing you want to do is have to worry about some big expense while caring for a newborn. 

Watch: Is it Important to have an Emergency Fund?

How Are You Handling Current Debt?

If you have any old debts hanging over your head, now would be a good time to address them. That doesn’t necessarily mean paying them off (unless you can!), but it does mean making a plan. How are you factoring in student loan payments to your budget with a baby? Can you get rid of things like credit card debt with a high interest? Consider restructuring or refinancing debt to give yourself a little more flexibility. The bottom line is that you need to have a plan and intention around your debt. That way, your plan is working automatically while you’re tending to more important things (like changing diapers at 3 a.m.). 

What Does Your Coverage Look Like?

Life insurance is more important than ever. The risk really begins before the baby is born: if one parent (or a surrogate) is carrying the baby and something happens to either or both parents, the baby will still need to be taken care of! Get the ball rolling by purchasing a plan that works for your situation as soon as possible. A sticking point is always how much insurance to buy: do you want to cover a certain number of years of living expenses or salary? Or make sure your mortgage or child’s tuition is secure? These types of questions will help you assess what your needs are. 

Picking out life insurance means playing out the worst case scenarios, which no new parents want to do, but it is an inevitable part of becoming a parent. Knowing that your family and your baby are protected in a tragic event means you can sleep well—when you sleep at all, of course.

What Does Your Childcare Situation Look Like?

Unless you have family in the area to help, childcare can be one of the largest expenses of having a child. Depending on your employment and financial situation, your childcare needs will change over time. Who is taking care of your baby during the first three, six, and 12 months of life? Will you employ a nanny or night nurse, enroll in daycare or find a nanny share? Find an option that fits your life and needs as well as your budget. 

Childcare is also an area you need to address early, as choosing a daycare or nanny can be a long process. If you’re going the nanny route, you may want to employ a premiere service that thoroughly vets candidates, and those can be pricey. Otherwise, many local neighborhood networking options (like family-oriented Facebook groups or subscriber-based parenting networks) can help you find someone trustworthy and affordable. 

Do You Have Time Off?

In the best-case scenario, you and your partner will both have time off to bond with your new baby. Whether that’s because you receive parental leave from your employer, or because you have a flexible job, you’ll need to look at the financial impact. Is your leave paid or unpaid? How much leave do you have? In some cases, employers will allow new parents to take additional, but unpaid, months off without penalty. You can also look at options for splitting up your time off. For example, if your company allows six weeks of paid parental leave, you may be able to use those weeks as needed instead of consecutively. 

When you bring your new loved one home, you want as few distractions as possible. That’s why planning ahead with your finances is crucial for putting your mind at ease. Focus on enjoying those first precious months together instead of stressing about money—you’ll thank yourself when your impossibly tiny infant is suddenly a full-grown adult!

Want to be more financially prepared for a baby? Interested in working together? Learn more about my financial planning services!