couple putting together a baby crib in baby room

Preparing For a Baby

Tips for families who have an little one on the way!

Are you adding a child to your family? Congratulations! Whether you're a parent, guardian, grandparent, or another expecting relative, parenthood is a fulfilling experience that requires careful planning and consideration.

As with any major life change, if you have a better grasp of the financial requirements and tasks, you can be better prepared for what's ahead.


Plan things one step at a time. Ask relevant questions, such as:

Will you (or your partner) take parental leave?

Though the United States does not offer universal paid parental leave, many employers offer some kind of maternity leave, and may include some portion of it as paid time off. In fact, the Family and Medical Leave Act allows eligible employees to take up to 12 weeks of unpaid leave after the birth of a baby. Talk with your boss and your employer's HR department to see what you can arrange. If applicable, don’t forget to explore options for paternity leave, as well. If no paternity leave is officially available, talk with your partner. You may still be able to save vacation time or other paid time off.

baby clothes and necessities illustration

Will you plan on a hospital, birthing center, or professionally-assisted home birth?

Be sure to include the financial aspect in your research. Does your health insurance cover a specific method and not others? Are your doctors and other prenatal professionals covered under your insurance plan? These kinds of questions are very important. Meet with the birthing professionals or institution beforehand to clarify billing procedures and to make as many arrangements as possible before the baby gets here.

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Where will you get all of the supplies you'll need for your new family member?

Will you buy most things new, or can you buy second-hand or borrow from friends or family who have already had children? While it is very important to buy some things new for safety reasons (car seats and strollers can be examples of this, as safety standards change over time), many other expenses can be reduced through buying things secondhand—or even borrowing them! Baby clothes, toys, diaper bags, and other necessities can break the bank if you’re not careful. Take a good look at your budget and see what you can reasonably afford.

Are there existing medical or other conditions for the mother or child which will require special treatment?

While most people can’t know this answer for sure, it is something to consider. For example, if you plan to adopt a child with special care requirements, or if the mother has special medical circumstances, take a look at those extra costs and budget them in as best you can.


The answers to these questions can inform you as you create a new budget. Take a look at your current expenses to see where you need to make adjustments. (Don’t have a current budget? Click here for budgeting resources!) You'll probably end up needing more than you expect for your new bundle of joy, particularly if this is your first child. Being generous with your budget now and planning around these new expenses in advance can make the transition easier when the baby arrives.

If possible, start setting aside the amount you plan to spend on your child each month in a separate account - LA Financial lets you nickname accounts in Online & Mobile Banking for specific purposes, so you can know how much you have for your "Baby Fund." Looking to open an account? Find ones that give you great saving benefits, too - open a Spending account. Super helpful savings perks when growing a family.

If one partner plans to stay at home after the baby is born, ease your way into living on one income and set any left aside for the baby account, too. This way, you can make the financial shift before your child arrives, AND you have some extra money put away for unexpected (or expected) expenses. If things are too tight, talk with your partner and decide where you can adjust your new budget.

It all can feel overwhelming but if you have some basic financial guidelines in place before the due date, you can be better prepared for your newest family member.

Need some extra funds to prepare for a new bundle of joy? Consider a fixed rate personal loan1. The loan may be used for any purpose. On approved credit, members may borrow from $1,000 to $20,000 for a maximum term of 5 years. Apply for a personal loan today.

1 We only offer personal loans in California and Arizona.


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