Financial Factors to Consider Before Getting Pregnant
Welcoming a baby into the world is one of the most magical and transformative moments in life. It’s a time of joy, hope, and endless possibilities. However, with that excitement comes a responsibility to plan for the future, particularly when it comes to finances. Taking a hard look at your financial situation before expanding your family is essential to ensure you’re ready for the journey ahead.
Let’s explore the most important financial factors to consider before getting pregnant, from healthcare costs to employment benefits, and how to plan for a new chapter of life filled with joy—and budgeting!
Healthcare Costs: What to Expect
When you’re expecting, healthcare costs can add up quickly, even if you’re fully insured. In 2023, the average cost of childbirth in the U.S. was around $13,000 for a vaginal birth and over $22,000 for a C-section, according to a study by Fair Health. These figures vary based on where you live, and that’s without factoring in prenatal visits, ultrasounds, and postnatal care.
If you have health insurance, many of these costs will be covered, but it’s important to dive into your policy to understand what’s included. Do you know your deductible? Is your preferred OB-GYN in-network? It’s crucial to check early so there are no surprises later.
“Our insurance covered most of the birth, but we still faced about $4,000 in out-of-pocket costs,” says Jenny, a mother from Virginia. “We hadn’t budgeted for that, and it was stressful.” Jenny’s story is a common one. A great way to start is by comparing the cost of childbirth in your state or local hospital. Also, research financial aid programs or payment plans that hospitals may offer.
Employment Benefits: Maternity and Paternity Leave
Another key financial factor to weigh before getting pregnant is your employment benefits—particularly when it comes to maternity and paternity leave. In the United States, federal law under the Family and Medical Leave Act (FMLA) grants eligible employees 12 weeks of unpaid leave after the birth of a child. However, not every employer offers paid maternity leave.
For example, California, New Jersey, and New York are among a few states that offer paid family leave. If you don’t live in one of these states, you’ll need to check with your employer. Do they offer paid leave? If so, for how long? If not, can you afford to go without a paycheck for a few months?
Planning for that drop in income is crucial. Start saving early to build a buffer, and if possible, take advantage of your employer’s benefits. Some companies offer flexible spending accounts (FSAs) that let you set aside pre-tax money for medical expenses.
Tip: Ask HR for details about parental leave policies, and check your partner’s benefits as well. Even if one of you is without paid leave, a strong savings cushion can make the time off less stressful.
Future Expenses: Diapers, Childcare, and College
Once your baby arrives, the expenses don’t stop. Diapers, formula, baby clothes—these are the costs you’ll face immediately, and they can come as a surprise. On average, families spend $1,000 to $2,000 annually on diapers alone, according to a report from the National Diaper Bank Network.
Childcare is another major expense that can vary depending on your location. The Economic Policy Institute reports that the average cost of infant care in the U.S. is over $1,200 per month—that’s more than some people pay in rent!
Then, of course, there’s the long-term financial picture. College tuition is one of the most daunting expenses for any parent. The cost of a four-year degree at a public university can easily top $100,000. While this may seem far away, many parents start saving for their child’s education through 529 college savings plans before their child is even born. A little planning goes a long way in managing the potential stress.
Story from the Heart: Saving for the Unexpected
When we had our second child, I thought I had everything planned out—until we realized we needed specialized medical care. Our baby was born prematurely, and while insurance helped, we still faced unexpected costs like a NICU stay. It was a tough financial hit that we hadn’t prepared for, but it taught me an important lesson: Save for the unexpected.
We also learned that flexible spending accounts (FSAs) and health savings accounts (HSAs) can be a lifesaver. If your job offers these benefits, take advantage of them. The tax-free savings can ease the burden of healthcare expenses.
Plan and Budget: Preparing for Your Growing Family
The best advice I can offer is to create a budget early on that accounts for all the potential expenses of raising a child. This includes healthcare, daily essentials like diapers and formula, and long-term savings for college.
Consider sitting down with your partner to map out a financial plan. Break down your current monthly expenses and see where you can cut back to save for the baby. Can you start a baby fund now? Even putting aside $50 to $100 a month can make a huge difference by the time your little one arrives.
Prepare for Your Journey into Parenthood
Getting your finances in order before getting pregnant will give you peace of mind as you embark on this exciting new chapter. As you plan for your future family, consider using tools like 529 college savings plans or setting up a flexible spending account to cover medical expenses. Don’t wait—start building your baby fund now!
If you’re looking for practical tools to help you along the way, check out my recommended budget planners, prenatal vitamins, and baby gear essentials on Amazon. Click here to find the best options.