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Expecting a baby? Here's how to get your finances ready

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  Published in Business and Finance on Wednesday, October 8th 2025 at 10:40 GMT by moneycontrol.com
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Getting Your Finances in Order Before the Baby Arrives: A Practical Guide

When a pregnancy is announced, the first thing that comes to mind is usually the excitement of a new life. Behind the joyous anticipation, however, lies a crucial financial reality: a baby comes with a host of costs that can strain even the most well‑planned household budget. The MoneyControl article “Expecting a Baby? Here’s How to Get Your Finances Ready” tackles this challenge head‑on, offering a step‑by‑step roadmap that covers everything from daily expenses to long‑term planning. Below, we break down the key take‑aways, explain why each step matters, and point out additional resources that the piece recommends for readers who want to dig deeper.

1. Re‑evaluate Your Current Budget

Why it matters
The article opens with a reminder that pregnancy and a new baby will immediately alter your cash flow. Prenatal visits, baby gear, and eventual daycare or childcare all add up quickly. Even if your household has a comfortable cushion, the short‑term spike in expenses can leave you scrambling.

What to do
- Track all outlays for the past 3‑6 months using a spreadsheet or a budgeting app.
- Create a “pregnancy expense” line item that includes: prenatal care, hospital or birthing costs, maternity clothes, a crib, stroller, diapers, baby formula, and a buffer for emergencies.
- Trim discretionary spending—cut back on subscriptions, dining out, or non‑essential shopping until the baby arrives.

Link‑based resource
MoneyControl provides a quick‑access budgeting calculator that can be linked to this section, enabling readers to input their monthly income and current expenses to see how much they’ll need to set aside.

2. Build or Strengthen Your Emergency Fund

Why it matters
Pregnancy can trigger medical complications that may not be covered by insurance, and a sudden leave‑of‑absence can create a temporary gap in income. The article stresses that a solid emergency fund—ideally 3‑6 months of living expenses—acts as a safety net for unforeseen costs.

What to do
- Set a target based on your household’s monthly outgoings.
- Automate transfers to a high‑interest savings account or a liquid mutual fund so the money grows while remaining accessible.
- Prioritize this over other “nice‑to‑have” investments until you hit the 3‑month mark.

Link‑based resource
A referenced link directs readers to MoneyControl’s guide on “Best Savings Accounts for Emergencies,” which compares interest rates and withdrawal terms across major banks.

3. Protect Your Family with Insurance

Why it matters
A robust health insurance plan not only covers prenatal and post‑natal care but also protects against high‑cost medical events that can otherwise devastate finances.

What to do
- Review your existing health insurance policy to ensure it covers maternity care, pre‑ and post‑natal visits, and delivery (both normal and C‑section).
- Consider a private health insurance plan if your employer’s policy leaves gaps, especially for high‑deductible plans that might not cover all maternity services.
- Add a term life policy for both parents if you have dependents, ensuring income protection in case of unforeseen events.

Link‑based resource
The article provides a link to a MoneyControl “Insurance Comparison” page that lets you compare premium costs, coverage limits, and customer ratings across leading insurers.

4. Make Use of Tax‑Advantaged Accounts

Why it matters
In India, several tax‑saving instruments can help you invest for your child’s future while simultaneously reducing your taxable income.

What to do
- Invest in the Sukanya Samriddhi Yojana if you’re expecting a girl; it offers high rates and tax benefits.
- Use a child‑specific PPF (Public Provident Fund) to lock in a disciplined savings plan with 100% tax exemption on interest.
- Max out your contributions to the Equity‑Linked Savings Scheme (ELSS) to get up to ₹1.5 lakh tax deduction under Section 80C while seeking growth.

Link‑based resource
A link in the article directs to MoneyControl’s “Tax Saving Schemes for Parents” that explains eligibility criteria and how to open accounts.

5. Plan for Parental Leave

Why it matters
Under the Maternity Benefit Act, mothers are entitled to 26 weeks of paid leave. Fathers also receive 5 days, and in many organizations, paternity leave can be expanded. The article warns that many workers take unpaid leave, which can erode household income.

What to do
- Speak to your HR department about the leave policy.
- Request a phased return to work or part‑time options, if your employer is flexible.
- Coordinate with your partner’s employer to maximise combined leave days.

Link‑based resource
The piece links to the “Parental Leave Rights” portal on MoneyControl that aggregates state‑by‑state laws and employer policies.

6. Create a “Baby Fund”

Why it matters
While some costs are immediate, others—such as future education or a first‑car purchase—fall in later years. A dedicated fund ensures you’re not dipping into other savings for these long‑term goals.

What to do
- Open a separate fixed‑deposit or a child‑targeted mutual fund.
- Contribute monthly; even small amounts compound over time.
- Review the fund’s performance annually to re‑balance or switch to a higher yield product if needed.

Link‑based resource
A link points to MoneyControl’s “Best Mutual Funds for Kids,” which lists funds with a history of consistent returns and minimal risk.

7. Update Your Estate Planning Documents

Why it matters
When a child is born, your will, insurance policies, and bank designations must be updated to reflect the new beneficiary.

What to do
- Re‑name your bank accounts and mutual fund holdings to include the child’s name, so there are no disputes later.
- Draft or revise your will to appoint a guardian if necessary.
- Add your child as a beneficiary on your life insurance and pension accounts.

Link‑based resource
The article links to MoneyControl’s “Will‑Making 101” guide, complete with templates and a checklist.

8. Plan for Childcare or Daycare

Why it matters
Even after maternity leave, childcare costs can be significant. Early childcare choices influence your child’s development and can affect your future earning potential.

What to do
- Investigate government‑sponsored childcare schemes that provide subsidised care.
- Compare private daycare centres for quality and cost, reading reviews on MoneyControl’s “Daycare Review” section.
- Consider home‑based care if it fits your budget and lifestyle.

Link‑based resource
A link in the article points to a curated list of “Top 10 Childcare Centres in Delhi,” helping readers choose reputable providers.

Final Thought

The MoneyControl article underscores that the financial journey of a new baby is not just a one‑off expense but a series of interlinked decisions that shape your household’s long‑term wellbeing. By taking a systematic approach—budgeting, building a safety net, securing insurance, leveraging tax‑advantaged accounts, and aligning your legal documents—you can enjoy the joy of motherhood without the shadow of financial stress.

The piece encourages readers to use the various MoneyControl tools—budget calculators, insurance comparators, and mutual‑fund rankings—to make informed choices. Whether you’re a first‑time parent or a seasoned one, the article serves as a practical roadmap to financial readiness, ensuring that the most precious addition to your family is also a sound investment in your future.