Baby on the Way: Preparing Financially for Parenthood in the Military

Military families have a lot to think about before deciding to have a baby, and the financial aspects are among the most important considerations. According to the digital parenting resource, babycenter.com, the costs of raising a baby can now add up to more than $20,000 in the first year, and that figure doesn’t even include medical costs.

Although the U.S. economy is doing well, the cost of living has many young adults wondering if they can afford children. Rising home costs, childcare expenses, and the lack of parental leave are a few of many factors that contribute to their concern.

The National Vital Statistics System with the Centers for Disease Control and Prevention provisionally reports that the U.S. birth rate declined 2% in 2023 from the prior year. The age group with the largest decline was women in their 20s. With the expense involved, it makes sense that people are waiting to start a family. However, when the time is right and you find yourself planning for a baby, it’s important to know that it’s possible to welcome a new addition without going into debt. Planning for a baby financially is one of the most powerful things you can do for the future of your family. Here’s how to begin.

Things You Need to Know When Planning for a Baby While Serving in the Military

1. Examine Your Health Insurance Plan

Now is the time to take a good look at your health insurance plan. Uniformed service members and their families are eligible for TRICARE comprehensive healthcare coverage, but there are different TRICARE plans to consider. Make sure you’re getting the right coverage for your growing family. Also, if your spouse has a job that offers health insurance, compare the two plans to see if your family could benefit from secondary coverage. And remember, the birth or adoption of a child allows you to qualify for a special enrollment option, so you can make changes outside of the annual enrollment period.

2. Take Advantage of Paid Parental Leave

Service members are eligible for 12 weeks of paid, non-chargeable parental leave after welcoming a child through birth, adoption, or a long-term foster care placement. This extended parental leave is in addition to convalescent leave for service members who give birth, and it must be taken within one year of a qualifying event or separation from active duty. By fully utilizing authorized parental leave, service members can personally care for babies longer than previous leave policies allowed, so you can save on childcare expenses. And it can be taken in multiple, nonconsecutive increments of a week or longer with command approval.

3. Buy Secondhand

One of the best ways to stick to a budget while preparing for a new family member is to buy gently used items. Babies grow quickly, often wearing items only a few times, especially during the first year, so outgrown items can look virtually new. Buying clothing secondhand is a great way to save money on items you know they will only wear a handful of times before outgrowing them. While thrift stores are a great option, you can also get free items by asking friends or family members whose little ones have grown if they would like to hand off clothes or other items. Other great places to find gently used items are online marketplaces and social media groups. There are specific groups for nearly everything so if you’re living near a military installation, check to see if there is a buy/sell/exchange group for baby items affiliated with your installation.

4. It Takes a Village

A mistake many new parents make is trying to do it all themselves. A wonderful aspect of military life is the built-in community that surrounds you. Check message boards on base, informational centers, and social media groups to find new parents in a similar situation to you. After you get to know and trust them, then divide and conquer. Consider carpooling to the grocery store, school, or appointments. Babysit each other’s kids and share new parenting tips. Creating an atmosphere of trust and support can benefit you both financially and emotionally.

5. Lean on All Available Resources

Do you know that your employer (the government) provides military families with different types of support and guidance like the New Parent Support Program? This program offers parenting support, education and resources like parenting classes, home visits, playgroups, and more. As your child nears school-age, check out the Department of Defense Education Activity (DoDEA) website to see what’s available, like school information, access to virtual learning, activity suggestions, and home schooling instructions, as well as ideas for building your own inexpensive e-library. Do a little research and you might be surprised at the variety of no-cost and low-cost resources available to you.

6. Buy Items in Bulk

You can buy items in bulk at big-box warehouse clubs, which can save you money in the long run. Buying diapers, wipes and formula in bulk is usually cheaper than individually purchasing them. But wait to stock up until you know what brands your baby prefers. Each child is unique, and you won’t know if they have an allergy or sensitivity until you introduce them to a product.

7. Think about Longevity

When prepping for a baby, think about how much use you will get out of the items you are purchasing before your child is too old for them. Cribs are often pricey, so look for one that converts into a toddler bed to get the most bang for your buck. Research other big-ticket items like car seats and strollers to make sure your baby can use them for as long as possible. Conversely, the short lifespan of items your baby can only use for a few months might mean that you don’t need to spend money on things like a bassinet, swing, or infant bathtub.

8. Contact Your Insurance Company about a Breast Pump

You can easily save hundreds of dollars by getting your breast pump covered through your health insurance. Contact Tricare or your insurance company to see if a breast pump and supplies are covered, and take advantage of this cost-saving resource. 

Prepare Financially So You Can Focus on What Really Matters

Adding a new member to your family is a time of joy and discovery, and preparing financially for your new arrival allows you to focus on the things that really matter. These are some general tips, but every situation is different. To get a more personalized plan for your growing family, get in touch with one of our Financial Advisors. For more information and to set up a meeting near you, visit www.firstcommand.com/get-started.

First Command Financial Services, Inc. and its related entities are not affiliated with, authorized to sell or represent on behalf of or otherwise endorsed by any federal employee benefits programs referenced, by the U.S. government, or the U.S. Armed Forces.