Budgeting tips for new parents

Create or adjust your budget

Your spending and savings habits will probably need to adjust to accommodate your new needs as a parent. 

Review your current income and expenses 

You may have already been affected by some immediate changes—for example, you or your spouse may have taken time away from work before and after having a baby or adopting, which may have reduced your income for a period of time. 

You may also have medical bills from the birth of your child. 

Whatever you’re adjusting your budget for, it can be beneficial to track your monthly spending or regularly review the data from a budgeting or banking app to see where you’re spending money. 

Adjust your spending 

After tracking your spending, it may be necessary to cut down on some expenses. The first place to look is often discretionary things like eating out, entertainment, and travel. It’s important to note that you don’t have to completely give up what you enjoy. However, having a plan and decreasing some expenses can help you enjoy the things you love while staying on top of your cash flow needs. 

And then there are the less obvious ways of cutting spending. For instance, you may save money on some types of insurance like car or homeowners simply by shopping around. Of course, the main expenses for most people with young children are child care and housing—both of which can be difficult to solve simply by being frugal.

Reevaluate your budget periodically

As your family continues to grow, your expenses will likely increase as well. It's a good idea to review your budget periodically so you can save for new expenses like doctor’s appointments, child care costs, or new school clothes and supplies.