mom and dad hold baby legs.

How to Plan Financially For A Baby

In the excitement of a new baby on the way, many couples forget how important it is to think beyond the costs of nursery décor, bassinets, and those adorable onesies. While those are important, some things you may not have thought about are the actual costs of having your baby, insurance, and even your budget once baby is finally here. Don’t worry, preparing for a new baby doesn’t have to be overwhelming—at least financially. 

Let’s talk about how to financially prepare for a baby so you can rest easy and enjoy every step along the way. Here are some important things to take into consideration as you get your finances ready for your new baby: 

Plan for Healthcare Costs

According to Peterson-KFF Health System Tracker, the average cost of pregnancy, birth, and postpartum care is around $18,865.1 And if you have insurance, the average out of pocket costs for new parents lands around $2,854.2 Of course, those are just estimates. Your own personal health costs may be different depending on your situation. Make sure to review your healthcare insurance plan to find out exactly how much you can expect to pay once your bundle of joy arrives. 

Create An Estate Plan

If you haven’t thought about creating an estate plan, now is the time! No matter how old you are, an estate plan exists to help your loved ones know what you want to do with your assets when you pass. It includes things like a will, advance directives, legacy or generational planning, and more. A will also designates your desires for your children; in the event that you pass away, you’ll need to assign caregivers and guardians for them. You’ll also designate a power of attorney if needed and beneficiary designations on your retirement accounts to make sure your family is taken care of when you’re gone. 

Pad Your Emergency Fund

An emergency fund is the financial foundation that ensures you’re covered when life happens. And as we all know, life can happen unexpectedly. An emergency fund gives you the peace you need when chaos hits. Instead of worrying where that money is going to come from, you can borrow from your own savings, but don’t forget to pay yourself back later. 

Debt Freedom

The art of debt free living is exactly that—an art. Sure, it can be a bit of a tough transition if you’re used to spending on credit cards, but your future self (and your family) will thank you later. Paying off your debt before baby makes his or her debut will be a huge help so you can focus on using your funds for things like wipes, diapers . . . and more diapers. If you’re serious about paying off your debt, there are plenty of helpful methods out there like the debt snowball or the debt avalanche methods to help you as you work toward debt freedom. 

How to Budget for a Baby

One of the first things you can do as you financially prepare to start a family is a budget. Doing a regular budget will help you work out the kinks. Where are you spending too much? What can you cut out? Where can you save? These are great things to think about as you get ready to increase your cost of living for a new baby. 

There are many different ways to prepare your budget. Download an app or just use an excel spreadsheet. No matter what you choose, just make sure you track your spending throughout the month and adjust your budget as you go. 

Preparing for a new addition can be a little nerve-wracking. But it doesn’t have to be! A financial advisor can help you prepare as you enter this exciting phase of your life. Contact your SageSpring Wealth Partner and start planning today.

Opinions expressed are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James does not provided legal advice. Be sure to consult with the appropriate professional in regards to your situation.

Jeffrey Dobyns
Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns is President and Founder of SageSpring Wealth Partners. Passionate about serving his clients, he strives to truly get to know them, understand their goals, and provide them with financial confidence before developing and executing ongoing, strategic financial plans. 

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNER™ professional, a Chartered Life Underwriter, a Chartered Financial Consultant, and a participant of the Dave Ramsey SmartVestor referral service program.

Jeff has held executive positions with financial planning firms for more than two decades. He served as VP of Investments of Lykins Financial Group CPAs before founding SageSpring in 2002. Jeff has been recognized for his unwavering commitment to his clients, and as a leader among Raymond James financial advisors, earning membership in Raymond James Chairman’s Council every year since 2008.

Jeff devotes considerable time and resources to a number of causes. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. He is on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes, as well as the advisory board for Halftime Institute of Nashville, an organization that coaches marketplace leaders to discern and engage in their life purpose. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are grateful to be raising their four children, Gracyn, Hunter, and twins Tanner and Logan at Christ Presbyterian Academy. Jeff enjoys being outdoors with his family- boating, hiking, skiing, hunting and fishing.

Ramsey Solution’s relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.