How Do You Know When You're Financially Ready to Have a Child? Laura BogartAugust 23, 2025 at 10:31 PM eyecrave productions / Getty Images/iStockphotoQuestion 3 of GOBankingRates' Top 100 Money Experts Series How do I know when I'm financially ready to have a child? Having a child means having a pie...
- - How Do You Know When You're Financially Ready to Have a Child?
Laura BogartAugust 23, 2025 at 10:31 PM
eyecrave productions / Getty Images/iStockphotoQuestion #3 of GOBankingRates' Top 100 Money Experts Series
How do I know when I'm financially ready to have a child?
Having a child means having a piece of your heart out in the world. If you're thinking of becoming a parent, you've probably heard some version of this from someone who's taken the journey before you. Once you are a parent, you want to make that world as safe and joyful as possible — a remarkable responsibility you may not feel ready for, at least financially.
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You may know you have a lot of love to give, but you still have to consult your bank account. When you're weighing such a big, emotional decision, it's easy to get lost in the details. Maybe you have a healthy savings account and a solid income, but you still worry it's not enough for that pricey private nursery school or the opportunities you want your child to have.
Take a breath. Listen to experts like Taylor Price, the founder of Priceless Tay, a financial coaching company that helps young adults not only survive financially, but thrive. Her insights have reached millions across social media, and she has some practical advice for people who are wondering if they can afford parenthood.
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Baby Stepping Into Financial Milestones
Will you jump up every time there's a wail over the baby monitor, or let your little one cry it out? Will you impose strict screen time in the summer, or get a little lax during the hot, lazy days? Parenthood comes with countless choices, and you might find yourself longing for some set rules.
Fortunately, Price has a few key financial milestones that can make parenthood easier — at least money-wise. "Ideally, you'll want a stable income, an emergency fund that covers three to six months of expenses, and manageable or no high-interest debt," she said.
In addition, insurance matters more than ever once you're preparing to grow your family.
"Health insurance coverage is crucial, especially one that includes prenatal and pediatric care," Price said. "Having a clear monthly budget that accounts for the additional costs of a child can also provide peace of mind."
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Handling Additional Costs Is No Child's Play
Ever hear that joke about how teenagers eat you out of house and home? It's not as funny for the bewildered parents finding they need to head back to the store barely a day after their "weekly" grocery run.
Price noted that many would-be parents forget there are ongoing — and sometimes unexpected — costs associated with childrearing, like increased grocery bills, medical co-pays, emergency childcare, and even the need for a new home or car once you've outgrown your old one.
"There are also subtler expenses like unpaid time off or even just convenience purchases that help parents manage busy days," she added. "Over time, these can really add up."
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This is a lot to consider. So much so, you might want to pop Baby's pacifier in your own mouth for a minute. But Price promises it doesn't have to be overwhelming if you make a few smart moves upfront, like getting a clear overview of your current financial landscape.
"Start by getting clear on your current financial picture — what's coming in, what's going out, and what you owe," she advised. Then, take action where you can. "Pay down high-interest debt where you can, and start small with savings."
She also reminds prospective parents not to overlook their employer: there could be an unexpected ally there. Flexible spending accounts (FSAs), parental leave policies or other family-related benefits can offer real support. You just have to be willing to ask.
But the core thing Price wants every aspiring parent to remember has more to do with common sense than dollars and cents: "You don't need to have it all figured out to be a great parent. Progress beats perfection."
Bottom Line
Deciding to become a parent is one of the hardest — and potentially most rewarding — choices you'll ever make. But you can make part of that decision easier by following Taylor Price's pragmatic advice: do a financial inventory, be aware of unexpected expenses, and explore the benefits your employer may offer. Parenthood may not come with a manual, but a smart financial plan is a good place to start.
This article is part of GOBankingRates' Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Got a question of your own? You could win $500 just for asking — learn more at GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: How Do You Know When You're Financially Ready to Have a Child?
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