How to Start a Baby Fund + Free Savings Tracker

Are you thinking about having a baby? Saving ahead for this big life change can be a massive relief when your baby arrives. Start a baby fund to focus on your new bundle of joy instead of your money!

Why do you need a baby fund?

People don’t often talk about the costs of having a baby. But kids aren’t cheap. And if you aren’t prepared, the costs can overwhelm you later.

Here are the biggest early childhood expenses to consider:

Hospital Bills

I’ve had 3 kids and 3 miscarriages – costing well over $10,000 total in medical bills.

Baby Supplies

Everything from cribs to high chairs cost money. Baby showers can help alleviate these expenses, but they won’t cover it all. You’ll also be paying for diapers and possibly formula for awhile.


Whether you need full-time, part-time, or an occasional babysitter, these costs add up significantly.

Future Education

Opening a baby fund early can set the stage for longer-term saving strategies, like a college savings account. Regular contributions can grow over time, benefiting from compound interest.

How to save for a baby pin, baby saving fund ideas

By starting a baby fund, you’re not just preparing for the immediate needs of your baby. You’re also building a foundation for their future. Balancing this fund with your other financial responsibilities might require some adjustments, but starting early can make these changes more manageable!

Remember, financial security for your baby’s future starts with the choices you make today.

How to Start Your Baby Fund

how to save for a baby, college saving ideas

1. Figure Out What You Need

1. First, consider how much you want for a baby fund. Look at the major costs above, plus if having a baby will impact your car or living situation. Also, note if you need more life, health, and disability insurance to protect your family

Examples might be:

  • One-time expenses:
    • Crib: $100 – $1000
    • Car seat: $50 – $300
  • Monthly expenses:
    • Diapers: $40 – $80
    • Formula: $70 – $150

2. Find Out Where You Are

Next, review your existing financial situation. Look into:

  • Income: How much can you realistically set aside each month? Could you make more to fill in any gaps?
  • Expenses: Identify ways to cut back or areas to redirect towards your baby’s fund.
  • Existing Savings: Is there money you could use from other savings funds?

Consider using a spreadsheet or budgeting app to keep your financial information organized.

3. Set a Clear Savings Goal

By setting clear SMART goals and understanding your current financial landscape, you can create an actionable plan to fund your baby’s future.

Make a Clear savings plan

Don’t just willy-nilly this thing! Use a percentage-based budget to help you with your overall budget. The 50 30 20 budget rule is a plan that guides you to save 20% of your take-home pay. It’s a balanced way to feel like you’re still covering your needs and wants while saving for the future.

  • 50% for needs: housing, food, transportation, etc.
  • 30% for wants: entertainment, travel, eating out, etc.
  • 20% for savings: paying off debts, saving for your baby fund, and other financial goals.

4. Set Up A Savings Account

Set up a dedicated savings account for your baby savings. Make sure it is separate from your other money.

Pro Tip: Online banks tend to pay out much higher than traditional ones. Shop around!

5. Make Saving Automatic

Finally, set up a direct deposit so that your savings come straight from your paycheck or checking account to your baby fund. This sinking fund category ensures that you consistently set aside money. Then, use your new baby savings tracker printable to see your progress.

  • Example Contribution Plan:
    • Weekly Contribution: $50
    • Monthly Contribution: $200
    • Yearly Total: $2,600

Remember, the earlier you start to save and the more you can put away consistently (even in small amounts), the better prepared you’ll be for your baby’s arrival.

Free Baby Fund Tracker

Next, grab the baby savings challenge pdf and get started! To start, write your big savings goal and the due date. Then, divide your number by 20 to get your short savings milestones. Each time you hit a new goal, fill in your thermometer.

free baby savings tracker challenge

*Make Sure You Have an Emergency Fund First!

Before you start saving for long-term goals, it’s essential to build an overall emergency fund. This is a protective buffer that covers up to 3-6 months of living expenses. It’s crucial for your financial security.

10 Quick Ways to Boost Your Baby Fund

1. Ask for money instead of choosing random things to put on a registry. (When doing this, let them know what you’ll be using the money for.)

2. Ask for diapers instead of gifts from friends and family.

3. Give grandparents the ok to contribute to your baby fund. They can also contribute to a 529 plan for kids’ college for birthdays, Christmas, etc.

4. Review your monthly subscriptions and cancel any that you no longer use or need. This can include streaming services, magazines, or fitness apps.

5. Go through your belongings and sell items that you no longer need or use. Online marketplaces and garage sales are great places to start.

6. If you have a skill or hobby, such as graphic design, writing, or carpentry, take on freelance projects to earn extra money.

7. Challenge yourself to not spend or only spend on essentials for a short amount of time. This will rewire your spending habits and also build a significant cash stash in a short time.

8. Food is one of the biggest expenses we have. If you can save money here, you’ll be well on your way to reaching your car savings goal.

9. Only warehouse shop for things you need. “Saving” on a bucket of chocolate isn’t saving – it’s just eating more chocolate. The same goes for baby stuff!

10. Find forgotten money. Utilize credit cards or apps that offer cashback on purchases. Then set aside the cashback rewards specifically for your baby fund. And save unexpected windfalls like tax refunds, bonuses, and monetary gifts.

Monitor Your Baby Fund

Review your contributions regularly to ensure that your baby fund is growing. If you receive a raise, consider increasing the amount you save. Conversely, during tighter financial periods, you may need to reduce contributions temporarily.

Starting a College Fund for Your Baby

Next, after your newborn arrives, take your baby fund to the next level!

baby fund ideas: baby college fund piggy bank

If you want to save for your baby’s future education early (a great idea!), consider a 529 Savings Plan. These plans offer tax advantages for education savings and the earnings are tax-free when used for qualified education expenses. Over time, these can grow significantly!

Alternatively, a Coverdell Education Savings Account (ESA) allows for tax-free withdrawals for educational expenses. It’s beneficial for covering not just college, but other educational costs during school years.

When selecting a plan, focus on:

  • Tax Benefits: Search for state-specific benefits, such as income tax deductions.
  • Investment Options: Choose from a variety of investments like stocks, bonds, or mutual funds.
  • Contribution Limits: For a Coverdell ESA, an annual maximum of $7,000 for 2024 applies (up to the minor’s earnings).

To compare different plans and find the one that’s right for you, I love the website

Remember: the key is to start early, be consistent, and review your investment choices as your child grows.

What’s Next?

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