Get your foundation in place
š¼ 1. Build Baby Expenses Into Your Budget
The USDA estimates it costs ~$18,000/year to raise a child. In NYC, that can exceed $26,000/year. Nowās the time to adjust your budget and plan for recurring costs.
š§ø 2. Estimate Upfront Costs
Start saving for big-ticket items and surprises:
- Nursery & baby gear: $2,000ā$4,000
- Maternity/paternity leave gaps
- Healthcare out-of-pocket: $2,500ā$5,000+ (e.g. out-of-network anesthesiologist, Rhogam shots)
šø 4. Use a Dependent Care FSA
Contribute up to $5,000/year pre-tax for daycare expenses (if offered by your employer).
š« 3. Price Out Childcare Early
Daycare costs in NYC can run $2,500ā$3,000/month. Tour facilities and start saving now.
š¶ Post-Baby Financial Checklist
Update and protect your plan
š 1. Open a 529 College Savings Plan
You can open a 529 once baby has a Social Security number. NYS residents get a state tax deduction of up to $10,000/year for contributions.
š” 2. Get Life Insurance & Disability Coverage
Protect your growing family. Term life insurance is usually best for new parents.
š 3. Create or Update Your Will
Name a guardian, review beneficiaries, and set up key estate documents.
š 4. Revisit Your Financial Goals
This is the perfect time to assess your prioritiesācareer changes, housing, educationāand align your savings and investment strategy.
š” Real-Life Client Tip:
One Brooklyn Plans couple expecting their first baby is saving $2,600/monthātheir estimated daycare costāduring pregnancy. Itāll give them a cushion once childcare starts and help them adjust to the additional expense.
š Letās Make a Plan Together
Our Bespoke Planning Engagement is ideal for new and expecting parents who want a clear roadmap without the overwhelm.
Weāll help you:
- Budget and save for baby
- Maximize tax strategies
- Protect your family with the right insurance
- Plan for long-term goals like education and career flexibility
š Ready to baby-proof your finances?