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The new parent money checklist for the first year
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The first money jobs after a baby arrives are to add the baby to your health insurance, apply for a Social Security number at the hospital, and update your tax withholding. Most job-based plans give you 30 days to add a newborn, and Marketplace plans give you 60. In the first few months, buy term life insurance, write a will that names a guardian, and open a savings account for the baby. At tax time, claim the Child Tax Credit, which is worth up to $2,200 per child for 2026.
Nobody hands you this list at the hospital. They hand you a baby, a bag of diapers, and a door. So here it is, in order.
I am not a financial advisor or a tax pro. This is general information to help you get organized. Check the details with your employer, your plan, or a tax professional.
Before the baby comes
Ask HR about leave and benefits. Find out how much of your leave is paid, when you need to apply, and what forms they need. Check whether your state has a paid family leave program, too.
Look up your health plan’s numbers. Find your deductible and out-of-pocket maximum. The birth will likely hit both, so it helps to know the number before the bill comes.
Get your breast pump through insurance. Most plans cover one at no cost. My guide shows how to get a free breast pump through insurance.
Price out childcare and join waitlists. Infant spots at daycares can have waitlists. Get on a few now, even if you are not sure yet.
Build your registry with a plan. Register for what you need and use the completion discount on the rest. My baby registry checklist sorts the must-haves from the extras.
At the hospital
Apply for your baby’s Social Security number. When you fill out the birth certificate form, the hospital asks if you want to apply for one. Say yes. It saves you a trip to a Social Security office later. You need the number to claim your baby on your taxes, open a bank account, and get health coverage. The Social Security Administration explains how it works.
The Social Security card comes in the mail. SSA says processing takes about two weeks, and the card arrives a couple of weeks after that.
Order copies of the birth certificate. Your state’s vital records office sells certified copies. You will need one for a passport, school, and more. Order two.
In the first 30 days
Add your baby to your health insurance. This one has a deadline. Most job-based plans give you 30 days from the birth, and Marketplace plans give you 60. Your baby’s care right after birth is often billed under the mother’s plan for a short time, but the baby is not on your plan until you add them. Miss the window, and you may have to wait for the next open enrollment. Call HR or your plan the first week home.
If your income is low, your baby may qualify for Medicaid or CHIP. Apply through your state.
Update your tax withholding. A new dependent changes your taxes. Use the IRS Tax Withholding Estimator, then give your employer a new W-4 if it says to.
In the first three months
Buy term life insurance. If someone depends on you, you need it. That includes stay-at-home parents. My guide covers how much life insurance moms need and where to get it.
Write a will and name a guardian. Life insurance pays the bills. A will says who raises your kids. Many families put this off for years. Do it now while you are thinking about it.
Update your beneficiaries. Check your life insurance and retirement accounts. Do not name your baby as the beneficiary, since insurers will not pay money to a minor. Name a trust or an adult who will manage it.
Open a 529 college savings account. Then share the gifting link with family. My post on 529 gifts to ask grandparents for instead of toys has a message you can copy and send.
Open a Trump Account if your baby qualifies. This is a new federal savings account for kids. U.S. citizen children born from January 1, 2025, through December 31, 2028, can get a $1,000 deposit from the Treasury once a parent opens the account. Families can add up to $5,000 a year. You can sign up on your tax return with IRS Form 4547, or through TrumpAccounts.gov and its app. The Treasury says real account emails come only from no-reply@TrumpAccounts.Treasury.gov, so ignore anything else that asks for your details.
Sign up for a dependent care FSA. If your employer offers one, you can set aside pre-tax money for daycare. The limit is $7,500 per household for 2026, up from $5,000. A birth often lets you sign up outside open enrollment, so ask HR.
At tax time
Claim the Child Tax Credit. For 2026, it is worth up to $2,200 per child under 17. Up to $1,700 of it can come back as a refund, even if you owe no tax. A baby born any day in 2026, even December 31, counts for the 2026 tax year. Your baby needs a Social Security number on your return.
Check your filing status. If you are a single parent, you may qualify for head of household. It has a bigger standard deduction than filing single.
Keep your childcare receipts. You need them for the dependent care FSA and for the child and dependent care credit.
Ways to save in the first year
Use your registry completion discount on the big items you still need.
Set up Subscribe and Save for diapers and wipes. Small savings on things you buy every month add up.
Borrow or buy used for things babies outgrow fast, like bouncers, swings, and clothes. Buy car seats new, since you cannot know if a used one has been in a crash.
Skip the extras. My post on what to skip on a baby registry lists the things you can leave off.
The checklist at a glance
| When | Task | Why it matters |
|---|---|---|
| Before birth | Ask HR about leave and benefits | Know your pay and paperwork |
| Before birth | Order your free breast pump | Most plans cover it |
| At the hospital | Apply for a Social Security number | Needed for taxes and coverage |
| First 30 days | Add the baby to health insurance | 30 day deadline for most job plans |
| First 30 days | Update your W-4 | Fewer surprises at tax time |
| First 3 months | Buy term life insurance | Protects your kids |
| First 3 months | Write a will and name a guardian | Says who raises your kids |
| First 3 months | Open a 529 and a Trump Account | Savings that grow for years |
| First 3 months | Sign up for a dependent care FSA | Up to $7,500 pre-tax for daycare |
| Tax time | Claim the Child Tax Credit | Up to $2,200 per child for 2026 |
Frequently asked questions
What should new parents do with money first?
Add the baby to your health insurance within your plan’s deadline, apply for a Social Security number at the hospital, and update your tax withholding. Then buy life insurance and write a will.
How long do I have to add my baby to my health insurance?
Most job-based plans give you 30 days from the birth, and some give more. Marketplace plans give you 60 days. Call HR or your plan the first week home so you do not miss it.
How much is the Child Tax Credit for a baby born in 2026?
Up to $2,200 per child for the 2026 tax year, with up to $1,700 refundable. A baby born any day in 2026 counts for the full year.
Does my baby qualify for a Trump Account?
A U.S. citizen child born from January 1, 2025, through December 31, 2028, can get a $1,000 deposit from the Treasury once a parent opens the account. Parents can open an account for older children too, but without the $1,000 deposit.
Do new parents need life insurance?
Yes, if anyone depends on your income or your work at home. Term life insurance is the usual pick for young families because it gives the most coverage for the money while the kids are small.
More for new parents: baby registry checklist, hospital bag checklist, and life insurance for moms.
