Having a baby brings a few money deadlines that are easy to miss in the first sleepless weeks. The two most important: add your baby to your health insurance within 30 days of birth (60 days for a Marketplace plan), and get your baby a Social Security number, which you need for the Child Tax Credit and the $1,000 Trump Account. The checklist below covers what to do before the birth, in the first month and during the first year. Tick items as you go; your progress stays in your browser.
Before birthLeave, insurance and budget
- Plan your leave. The Family and Medical Leave Act gives eligible employees up to 12 weeks of unpaid, job-protected leave (employers with 50+ employees nearby; you need 12 months and 1,250 hours on the job). Check your employer’s paid parental leave, short-term disability for recovery after birth, and whether your state runs a paid family leave program.
- Know your health plan costs: deductible, out-of-pocket maximum and which hospital and pediatricians are in network. Delivery costs often reach the deductible.
- Elect a dependent care FSA at open enrollment if you’ll pay for daycare. The household limit is $7,500 for 2026.
- Build a first-year baby budget (child care, diapers, formula, higher health costs) with the budget calculator, and top up your emergency fund.
First 30 daysDeadlines that can’t wait
- Add your baby to your health insurance within 30 days on a job-based plan (coverage goes back to the birth date) or within 60 days on a Marketplace plan.
- Apply for a Social Security number at the hospital when you fill out the birth certificate information. The card arrives by mail in a few weeks.
- Order certified copies of the birth certificate from your state or county vital records office; you’ll need them for a passport, school and benefits.
- Update your W-4 with your employer so your paycheck reflects your new dependent.
First yearProtect and save
- Claim the $1,000 Trump Account deposit if your baby was born from 2025 through 2028, is a U.S. citizen and has a Social Security number. You sign up with IRS Form 4547 or at trumpaccounts.gov.
- Get life insurance if anyone depends on your income. Term life is usually the most affordable way to cover the years your child depends on you. See how much life insurance you need.
- Write a will that names a guardian and update beneficiaries on your 401(k), IRA and life insurance.
- Freeze your child’s credit. Parents can request a free credit freeze for children under 16 at Equifax, Experian and TransUnion, which helps block identity theft.
- Start college savings if it fits your budget, for example with your state’s 529 plan, after your emergency fund and retirement saving are on track.
- Claim your tax breaks when you file: the Child Tax Credit, and the child and dependent care credit or your dependent care FSA (see the table below).
Tax breaks and benefits for new parents (2026)
| Benefit | Amount | Key rule |
|---|---|---|
| Child Tax Credit | Up to $2,200 per child under 17; up to $1,700 of it refundable | The child needs a Social Security number by your return’s due date. The credit starts to phase out above $200,000 of income ($400,000 married filing jointly). A baby born on Dec. 31 counts for the whole year. |
| Dependent care FSA | Up to $7,500 per household (2026) | Pre-tax money for daycare, preschool or a sitter so you can work. Elect it at open enrollment or within 30 days of the birth. |
| Child and dependent care credit | A percentage of up to $3,000 of care costs for one child ($6,000 for two or more) | You can’t count the same dollars for both the FSA and this credit. |
| Trump Account | $1,000 federal deposit for babies born 2025–2028 | A tax-advantaged account for the child; family contributions have been allowed since July 4, 2026, up to an annual limit. |
| Birth or adoption withdrawal | Up to $5,000 per child from a 401(k) or IRA | No 10% additional tax if taken within a year of the birth or adoption; income tax still applies. Use it only if other savings run short. |
What a baby costs in the first year
The biggest first-year costs are usually child care, health care and lost income during leave, not the nursery. Child care alone can rival rent in many cities, so price local daycare or in-home care early and decide whether one parent will cut back on work. Then build those numbers into your monthly budget before the baby arrives, so the first months don’t run on a credit card. If you’ll need to borrow, compare the cost first: our buy now, pay later calculator shows the true cost of installment plans for baby gear.
Frequently asked questions
How long do I have to add a newborn to my health insurance?
On a job-based plan, you must request enrollment within 30 days of the birth, and coverage goes back to the date of birth. On a Marketplace plan, you have 60 days, and coverage can also start on the birth date.
Does my baby need a Social Security number for the Child Tax Credit?
Yes. The child must have a valid Social Security number issued by the due date of your tax return. An ITIN isn’t enough. The easiest way is to apply at the hospital when you give the birth certificate information.
Who gets the $1,000 Trump Account deposit?
Children born from Jan. 1, 2025, through Dec. 31, 2028, who are U.S. citizens and have a valid Social Security number. A parent or other eligible person makes the election with IRS Form 4547 or through trumpaccounts.gov.
Is FMLA leave paid?
No. FMLA protects your job and your health coverage for up to 12 weeks, but the leave is unpaid unless your employer offers paid leave or your state has a paid family leave program.
Sources: IRS (Child Tax Credit, Trump Accounts news release IR-2026-42, dependent care benefits exclusion under P.L. 119-21, Publication 590-B), U.S. Department of Labor (FMLA; protections for newborns and new parents), HealthCare.gov (special enrollment periods), Social Security Administration. Checked November 2026. This guide is educational and isn’t legal, tax or financial advice.
Related: All life event guides, HSA vs. FSA, Term vs. whole life insurance, Planning your financial legacy.