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key financial habits to have when expecting a baby

9 key financial habits to have when expecting a baby

Last Updated on June 26, 2023 by Parentology

9 key financial habits

The most common question young couples have when they want to have a baby or when expecting a baby is, how much should they have to financially prepare for all the expenses that will come their way when expecting their firstborn?

This article is here to help young couples be financially prepared before having their first child.

While household expenses can differ between families’ financial capacity and lifestyle, it’s best practice for couples to start setting aside money on a regular basis when they’re trying to conceive for their firstborn and succeeding children. Being financially prepared for the newest member of the family will take a lot of weight off the couple’s shoulders when it comes to all the expenses they’ll be incurring during pregnancy, labor, and other medical expenses.

These financial habits can help any couple trying to conceive, or expecting a new member of the family to be financially prepared when the baby arrives in their lives.

1.  Evaluate existing insurance policies

The first thing couples must have to clear out is making sure their insurance policies are in order. Expecting a baby essentially means higher household expenses in the near future, making sure that both soon-to-be parents are well covered for any unforeseen incidents that may occur. Having insurance policies that can cover for any hospital expenses a couple might incur when an accident occurs.

Aside from existing insurance policies, couples might also want you to get an extra layer of protection during the pregnancy stage with maternity insurance. This type of insurance usually covers for any pregnancy complications and congenital illness. While some insurance companies can provide couples with a standalone maternity policy, others can bundle with either a Life insurance coverage, Endowment or Investment Linked policies.

Reviewing insurance dependents and policies, seeking help from a trusted financial advisor for help, these are some things couples should consider in terms of their own insurance coverage when expecting for a baby.


2.  Plan for newborn hospitalisation and personal accident insurance

On top of a maternity insurance plan, couples should be getting insurance policies for their newborn within the first 30-60 days of their new family member. Getting the baby’s own insurance coverage is just as important as the parents’ own insurance policies.

Having an insurance policy that can cover the child’s hospitalisation bills for insect bites, food poisoning, dengue fever, HFMD, measles, and other infectious diseases that may affect a newborn can help new parents save a lot of money on hospital bills.

Personal accident insurance policies for newborns are generally more affordable than other insurance policies, some policies can even be as low as $1 a day.


3.  Save up for pregnancy and delivery costs

There are a lot of medical expenses related to the pregnancy stages of expecting a baby alone. Being financially prepared for numerous gynecologist consultations, nutritional supplements, body scans and countless blood tests is a good financial habit for couples expecting a new member of their family.

Depending on the clinic or the couple’s gynecologist, a couple could be paying around $150 to $380 per consultation visit. Some clinics offer consultation packages for expecting couples to help them save on consultation expenses.

Delivery costs can range widely depending on the hospital and the method of birth the soon-to-be mother will have. Generally speaking, a public hospital is cheaper compared to a private hospital, and a C-section is more expensive than a natural birth method. It is a smart financial move to prepare and save up for the more expensive route when expecting a baby. This way, you can guarantee a healthy and safe labor.

In case the baby is born premature or needs to have extended time in the NICU for jaundice or treatments the newborn will need, saving up for these types of circumstances can help alleviate some of the stress when expecting a baby.

Generally, couples save up to around $20,000 to cover pregnancy and delivery expenses to be financially comfortable when expecting a baby.

Another thing to consider and can deal quite a deep hole in a couple’s budget is Cord Blood Banking, which can range from $5,000 to $8,000 for a private storage.


4.  Plan for post-delivery costs

Post-delivery expenses can pile up to an uncontrollable amount if no funding and proper planning is set aside for it. Confinement meals and nanny, post-natal massages and other types of post-delivery costs should be well considered in the budget couples save up when conceiving or expecting a new family member in their household.


5.  List down newborn essentials and come up with a budget

Start with the one-time expenses such as a baby crib, clothes, mittens, socks, bibs, wash cloths, a car seat, breast pumps, and other stuff you’ll need to take care of the newborn. These are the stuff couples can buy brand new or second-hand from other parents that no longer need them. Some of these items can also be set aside in case the couple wants another baby in the near future.

Then make another list for the baby’s consumables, such as diapers, formula milk, shampoos, and other baby care products parents will be using on a regular basis.


6.  Choose a paediatrician for the new member of the family

It is best to have one paediatrician ready for medical checkups for a newborn baby in case medical emergencies come up. Couples can save a lot of time and money by consulting with their insurance agent for a shortlist of paediatricians under their insurance network, and what services can be covered or not.


7.  Plan for childcare

Planning for childcare is often overlooked by new parents, setting aside funds for a nanny to look after their child when their maternity leave is over can help both parents a lot. However, if the cost of getting a nanny is too much for the monthly household budget, seeking help from the couple’s parents or other relatives that can help take care of the baby can save couples a lot of money.


8.  Track expenses on a regular basis

Expense tracking apps such as Seedly, or any other free mobile apps available can work wonders for couples with a tight budget. Tracking expenses in real-time helps couples visualise where the money is being spent and keep track of how much they have been spending overall from during the pregnancy stage, to the early days of parenthood. Couples can even continue this habit of keeping track of expenses to see how much they are spending and how much they are saving for the future.


9.  Build up on the family’s emergency fund

This list pretty much sums up the general cost couples need to financially prepare when expecting a new member in their family. However, despite all the preparations, some unforeseen circumstances can still happen. It’s just as important to prepare for the worst and to set aside a portion of the household income for these types of emergencies during and after pregnancy.

These financial habits for couples expecting a baby can take away any financial issues that may come their way through this key milestone in their life. So start saving early and build a healthy and financially secured family.


We are here to help!

When it comes to expecting a new member to the family, financial commitment is not an easy task. It can be overwhelming especially for first time parents, but that doesn’t mean it should be dull and mundane! It takes time to understand and plan, especially if you are also caring and planning for yourself and your family.

If you still have any queries, simply fill in the form below and contact us for a non-obligatory consultation now!




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