New Baby? Here’s What to Do First (Financially Speaking)-Finger Financial Five #225

Becoming a parent for the first time is like starting a whole new chapter… maybe even a whole new book. One full of joy, a few late nights, and a whole lot of decisions.

A new baby brings love — and paperwork. I put together this guide as a way to help new parents (and expecting ones) feel a little less overwhelmed. Think of it as a guide. You don’t have to do everything at once. Just focus on the next right step.

Whether you’re preparing for your first child or just want to help a loved one who is, here are some financial and legal items to take care of — broken up into bite-sized chunks.

🚨 The First 30 Days: Take These Steps ASAP

These items have deadlines or legal consequences, so try to get them done sooner rather than later.

1. Add your baby to your health insurance
   • Most plans give you just 30 days to do this. Miss that window, and you might be stuck paying out of pocket until open enrollment rolls around.
2. Apply for a Social Security number
   • You’ll need this to file taxes, open accounts, and more. Hospitals usually offer this when you’re filling out the birth certificate.
3. Request your baby’s birth certificate
   • Pro tip: order more than one. You’ll use it for passports, insurance, school, and more. Like having extra car keys — just makes life easier.
4. Update your estate plan

Now that someone new is depending on you, it’s time to:

• Name a guardian in your will
• Add your child (or trust) as a contingent beneficiary
• Review and update life insurance policies

🧭 Next Steps: Financial Planning for a Growing Family

These items are still important, but you can tackle them in the coming weeks or months.

1. Revisit your budget
   • Diapers, daycare, doctor visits — things add up quickly. Now’s a good time to sit down and update your spending plan.
2. Adjust your tax withholdings
   • Adding a dependent may change how much tax you owe (or how much refund you get). Talk with your CPA or adjust your W-4.
3. Reassess your life insurance
   • Your old policy might not be enough anymore. A good rule of thumb is to have enough coverage to replace income and cover big expenses like education or housing.
4. Look at your workplace benefits
   • Some jobs offer dependent care FSAs, HSAs, or group life insurance for children. Worth checking out.
5. Start a 529 plan
   • College might seem far away, but compound interest needs time to work its magic. A 529 grows tax-free for education expenses and some states offer a tax break on contributions. A friend of mine had one set up for their grandchild — gave $50 instead of a toy. That $50 may turn into books, a laptop, or even tuition down the road. I set one up for Elliott as soon as he got his Social Security number.
6. Freeze your baby’s credit
   • Identity theft can happen to anyone — even newborns. You can freeze their credit with the three major bureaus. It’s free, and it’s smart.
7. Order a passport (and passport card)
   • If you’ve got travel plans, this step can take time. Fun fact: even babies need passports for international travel.

📌 Good to Do (But No Rush)

These aren’t urgent, but they’re helpful and worth doing when time allows.

1. Register baby gear for recalls
   • Cribs, strollers, car seats — it’s smart to register so you’ll be notified in case of a recall. Safety first.
2. Create an email address for your child
   • I’ve heard parents do this and send letters, photos, or memories over the years. When the child turns 18, they have a digital time capsule.
3. Consider Global Entry
   • Yes — even for infants. If you’re planning to travel, this can save you a lot of time in customs.
4. Keep key documents when you travel
   • Bring copies of the birth certificate and immunization records — they can come in handy for doctor visits or daycare enrollment.
5. Add your child as an authorized user on a credit card
   • Some card companies allow this. Done right, it can help your child start building credit early.
6. Sign up for Dolly Parton’s Imagination Library
   1. This program sends your child a free book each month from birth to age five. That’s 60 books, totally free. A fantastic way to build a little home library and encourage reading early on.

Final Thought

Parenthood can feel like drinking from a firehose. But you don’t have to do it all in a day. Just take the next step.

Little by little, one walks far…