New Parent Financial Checklist
Sometimes, it takes building a family for us to start getting our finances in check. Here are all the things you should be trying to do if you're an expecting parent or a current parent.
First Step - Get out of Debt
Hopefully you've already made a budget by this point; if not, go back and do that. Once you've created a budget, you should have an idea on how much money you can allocate toward debt each month. You're going to use that to build out a debt pay-off plan using the Debt Snowball Method.
The Debt Snowball Method means you pay all of your minimum payments for your debt, and any extra money you put toward your smallest debt until it's paid off. Then you attack the next smallest.
Using the calculator below you can input all of your debts and the amount that you can afford to pay toward your debt to calculate your payoff dates. If you don't like the dates, back to the budget to figure out what levers you can pull to move faster.
Step 2 - Get Life Insurance
If you’re a parent, term life insurance is one of the smartest, most affordable ways to protect your family. It gives your loved ones a financial safety net if something happens to you, covering the mortgage, childcare, education, and living expenses.
A good rule of thumb is to get 10–15x your annual income in coverage. Term policies are straightforward and low-cost, letting you buy real protection during the years your kids need it most.
We decided to use Ethos because we didn't need to do any medical exams and it took about 10 minutes to sign up.
Step 3 - Estate Planning & Will
Having a will or estate plan is one of the most important acts of love you can give your family. It ensures your kids are cared for by the people you trust, and your assets are handled the way you want.
Without a plan, the courts decide—and it’s a long, stressful process for those you leave behind. A simple will names guardians, outlines who gets what, and can prevent family conflict. It’s not just for the wealthy—it’s for anyone who wants peace of mind, clarity, and control over their family’s future.
Step 4 - Investing For Your Child
A 529 plan is one of the best ways to save for your child’s future education, offering tax-free growth and withdrawals when used for qualified expenses. Even saving just $10 a week can grow significantly over 18 years thanks to compound interest. And now, with recent rule changes, unused funds (up to a limit) can be rolled over into a Roth IRA for your child’s retirement, meaning your savings don’t go to waste.
It’s a flexible, powerful tool that helps you invest in both their education and long-term financial security. Starting small now can lead to big opportunities later.