Financial Planning During Pregnancy: 5 Ways Pregnant Women Can Plan Financially for Their Future
Updated: Nov 3, 2023
First, if you plan to get pregnant or are pregnant, I want to congratulate you! Pregnancy comes with many different emotions and affects women in different ways, but whatever your experience or journey during these nine months, having a financial plan during pregnancy and preparing for the future will prepare you and your family for a better future financially.
It is time to start planning for the long term and take action to establish an emergency fund.
The coming months will be busy, so early action is critical to a savings account and childcare planning. Ensure you make financial decisions with your significant other, as financial planning is key before the baby arrives.
In this blog, I will discuss Financial Planning During Pregnancy: FIVE ways pregnant women can plan financially for their future.
1. Start a savings account:
Start a savings account specifically for pregnancy and baby expenses; aside from your regular financial statements, set aside money monthly for baby expenses. Having a separate savings account will help you manage the baby's needs and still allow you to save for an emergency fund account or a significant purchase.
It may be beneficial to make a new budget specifically for baby items. That way, you will have all the required baby items when the baby arrives.
Once the baby is born, you will need a baby stroller, baby carrier, a swing, baby gear, college savings, etc., and these expenses add up. Plan accordingly and set aside a monthly allocation for these expenses.
2. Create a budget:
Create a budget to track income and expenses post-pregnancy.
During pregnancy, you may have to shift your diet and require additional expenses in your grocery bill, or you may have to spend money on maternity clothing; whatever the need is, make sure you add it to your budget and allocate additional funds specifically for pregnancy needs.
3. Check out community or government programs:
Look into community or government programs available to pregnant women and families. These programs may help you save money and reduce expenses, improving your household income. Supporting a baby financially increases the cost of living expenses, including establishing a college fund.
4. Consider getting life and disability insurance
Life and disability insurance will protect the family if something happens to the primary caregiver. Additionally, hospital bills can be costly, which, factored with possible lost income due to maternity leave, may leave you in a financial bind.
5. Plan for potential maternity leave and consider ways to supplement income.
Planning for maternity leave and having a solid financial backup plan will ease the financial stress.
What should women consider when beginning a savings account while pregnant?
When beginning a savings account during pregnancy for pregnancy expenses, consider the upcoming baby needs, such as strollers, furniture, and clothing, and add the amount to your budget so that you can begin saving immediately. Additionally, consider setting money aside to supplement your income during maternity leave if you are employed.
When beginning a savings account for a child while pregnant, a woman should consider the following:
The purpose of the account: Decide what the savings account will be used for, such as college expenses, future medical expenses, or other expenses related to the child.
The type of account: There are several types of savings available, such as a regular savings account, a college savings plan, or a trust account. It would be best to choose an arrangement that best suits her needs.
The contribution plan: Decide how much you can save monthly and set up a regular contribution plan.
The savings rate: Research different savings rates to find the best interest rate for a savings account.
The account's flexibility: Consider if the version will be easily accessible if you need to withdraw funds for unexpected expenses.
The tax benefits: Research if the account has any tax benefits or if it is state-specific.
The long-term plan: Consider if the account will still be helpful for the child in the long term and if it will still be accessible when they reach 18 or 21, depending on the account's rules.
What should pregnant women include in their budget?
When creating a budget for pregnant women, it's essential to consider the following expenses:
Medical costs include prenatal care, delivery, and any additional medical expenses that may arise during pregnancy.
Childcare: If you plan to return to work after giving birth, budget for childcare. Childcare costs have increased significantly over the past decades, and having a financial plan will help relieve financial stress.
Baby essentials: This includes items such as a crib, stroller, car seat, clothing, and diapers.
Maternity leave: If you plan to take time off work after giving birth, you should budget for the loss of income.
Postpartum recovery costs: This includes any additional medical expenses that may arise during the postpartum period, such as lactation consultant or therapy
Insurance: Pregnant women should check their health insurance policy to know what costs will be covered and what will not and if they need additional insurance.
Other costs: Additional expenses such as transportation, baby classes, and other activities should be considered.
You may feel like money is beginning to stretch too thin, but planning and preparing by allocating your funds to the appropriate bucket will help you manage your future financial needs.
Aside from having a savings plan and creating a budget, look into community or government programs available to pregnant women. Below, I will discuss a few programs available to pregnant women that may be of assistance depending on your family situation and needs.
For more personal finance tips, check out these articles:
What programs are available to pregnant women?
Several programs available to pregnant women provide financial assistance and support. Some of these include:
Medicaid: This government-funded program provides health insurance coverage to low-income pregnant women, individuals, and families.
WIC (Women, Infants, and Children): This federal program provides financial assistance for healthy foods, nutrition education, and other services to low-income pregnant women. In addition, this service is open to families with children under the age of 5 who fall within an income bracket.
SNAP (Supplemental Nutrition Assistance Program): This federal program provides financial assistance for food to low-income individuals and families, including pregnant women.
Temporary Assistance for Needy Families (TANF): This federal program provides financial assistance to low-income families, including pregnant women and families with children.
Pregnancy Medicaid: Some states have a separate Medicaid program for pregnant women with higher income limits than regular Medicaid.
Maternity Care Assistance: Certain states have programs that assist with prenatal care, childbirth, and postpartum care and provide assistance with transportation and other needs.
Paid FamilyFamily Leave: Some states have programs that provide financial assistance for new parents during their time off work.
Local community centers or religious centers: Check out your local community centers or religious centers; you may be able to find support groups for pregnant women, Lamaze or yoga classes, and breastfeeding classes offered for free or for a discount.
It's worth noting that these programs' availability and specific details vary by state. Check with the state's health and human services department or social services for specific and updated information.
Another thing to consider while pregnant is life and disability insurance to prepare and protect your Family.
Life and disability insurance are essential for pregnant women, as they provide financial protection for their families in the event of their unexpected death or disability. Plan accordingly based on your needs and those of your Family.
Life insurance: This type of insurance pays a death benefit to the named beneficiaries in the event of the insured's death. Term life insurance and whole life insurance are the two types of life insurance; term life insurance provides coverage for a specific period, while life insurance covers the entire lifetime of the insured.
Disability insurance: This type of insurance provides financial assistance to the insured if they have a disability that prevents them from working. There are two main types of disability insurance: short-term disability insurance and long-term disability insurance. Short-term disability insurance provides coverage for some time, usually up to a few months, while long-term disability insurance provides coverage for a more extended period, typically several years or until the insured reaches retirement age.
Accidental Death and Dismemberment (AD&D) insurance: This type of insurance provides financial assistance to the insured in the event of accidental death or dismemberment.
Critical Illness insurance: This type of insurance provides a lump sum benefit to the policyholder if diagnosed with an illness covered by the plan, such as cancer or heart attack.
It's vital for pregnant women to understand the coverage provided by these insurance policies and to choose the policy that best meets their needs. It's also essential to review and understand the exclusions, limitations, and terms of the procedure and to consult with a financial advisor or professional if they have any questions. Once you decide what insurance is best for you, speak with your spouse, partner, significant other, or family member and let them know about your insurance plan. That way, if you cannot execute the plan, someone else is privy to your insurance plan.
There are many aspects to consider during this phase of life. It can be overwhelming and daunting, but remember you are not alone; many resources are available to pregnant women. Below, I will discuss a few ways women can plan financially during pregnancy.
What are ways women can plan financially during pregnancy?
Maternity leave can be an exciting but financially challenging time for women.
Here are some ways women can plan financially during maternity leave:
Understand your benefits: Review your employer's policies and benefits related to maternity leave, such as pay and length of leave, and determine if you are eligible for government benefits like the Family Medical Leave Act (FMLA) or state-provided benefits.
Estimate your income and expenses: Create a budget considering your reduced income during maternity leave and any additional costs, such as childcare.
Consider a short-term disability policy: Some employers offer short-term disability insurance as an employee benefit; this insurance can cover a portion of your income while on maternity leave.
Build an emergency fund: A savings cushion can provide peace of mind and help cover unexpected expenses during maternity leave.
Explore other income sources: Consider options like telecommuting, freelance work, or part-time work that can help supplement your income during maternity leave.
Review your insurance policies: Review your life, health, and disability insurance policies to ensure that you and your family are adequately protected in an emergency.
Review your benefits: Review your benefits and consider changing your 401(k) or other retirement plans.
Make a plan for returning to work: Consider your options for returning to work, including part-time or flexible schedules, and plan for any additional expenses, such as child care.
Women need to plan financially during maternity leave, as it can help them manage their finances during this time and also help them feel more secure about their financial future. Consult with a financial advisor or accountant for more personalized advice.
Remember the tips discussed in this article and begin taking action today!
Create a budget: Pregnant women should create a budget that accounts for the additional expenses associated with having a child, such as childcare and medical costs.
Start saving for college: Starting a college savings plan early can help parents prepare for the high cost of education in the future.
Consider a life insurance policy: Pregnant women should consider purchasing a life insurance policy to provide financial security for their loved ones during their unexpected death.
Review and update estate plan: Review and update the estate plan to ensure the care of your child in the event of unforeseen circumstances.
Make a plan for parental leave: Pregnant women should also plan for their time off work and ensure enough savings to cover living expenses during maternity leave.
Remember that personal financial planning will ensure your growing Family is financially secure during pregnancy and post-pregnancy.
By Edith Lagunas
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Disclosure: I may receive affiliate compensation for some of the links below at no cost if you decide to purchase a paid plan. This is for entertainment only and is not intending to provide financial advice.
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