Baby Balance Sheet: Preparing for Baby #1 on a $98k Income in Austin, TX
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When you’re pregnant with your first child, the last few weeks before the baby arrives can be a bit maddening. There’s a lot of sitting around wondering what happens next. What will labor and delivery feel like? What will it be like to have your life consumed by a tiny (but loveable) tyrant? And how much will all of this really cost.
In our latest edition of Baby Balance Sheet, we hear from a 38-year-old soon-to-be first-time mom in Austin, Texas. As she tells us in her entry, she and her husband, who’s 41, waited until they felt emotionally and financially secure before embarking on parenthood.
Her husband, who has been in the midst of a career transition, is going to be the primary caregiver, so the couple will be able to save some on the cost of child care. There’s been a rise in stay-at-home dads since the pandemic. As of 2023, nearly one in five stay-at-home parents in the U.S. are fathers, according to a 2023 report from Pew Research.
Read on to see how this couple are spending and saving and managing life as a one-income household preparing to become a family of three.
About me: I’m a librarian in Texas, and my two favorite things are books and food. I’m excited for my first baby (a girl!) coming this summer.
Age: 38
When is your baby due? First baby due in late May 2026
Where do you live? Austin, Texas
What is your family household income? $98,000
Were you worried about being able to afford a baby? Why or why not?
At the moment, I feel pretty confident that we can afford to have this baby. We’ve been married 10 years, and one of the reasons we waited so long to have a baby is so that we could get to a place where we felt financially secure. We also wanted to wait until we felt more emotionally secure and mature enough to have a kid. I grew up with some financial insecurity, and I didn’t want my child to feel the same way.
Did you have a savings goal before your baby arrived or are you working toward one now?
We’ve just been saving what we can. I knew my medical out-of-pocket maximum for the year would be around $3,000, and I am planning to pay for that with a small investment fund that my parents set up in high school. It only has around $5,000 in it, but I always knew that I’d earmark that for potential baby expenses. I did recently get a raise that adds about $100 per paycheck, and I figure that will get used for normal baby expenses, too.
What kinds of financial tools (or tricks!) are you using to help reach your savings goals?
I keep a budget spreadsheet with basic monthly spending info and yearly goals.
Are you setting up any savings accounts for your baby—like a 529, Trump Account, or something else? If yes, what kind of account(s) are you using?
I hadn’t really thought about it before last weekend. My friends and family threw me a lovely baby shower. One of my friends gave me a diaper bag and inside was a one-sheeter explaining all the benefits of a 529 account. After talking to her, I’m definitely going to set one up. She offered to help me do it after the baby’s born.
I’m not sure I’ll set up a Trump Account. I don’t know too much about them, but I’m sort of off-put by the name.
If you’re setting up a savings account (529, 530A, something else) for your baby, are you hoping friends or family might contribute to it too?
Yes, we’re hoping that the grandparents will donate to the 529 account. We live in an apartment, and I’m a little worried about being overwhelmed with all the toys and baby stuff. I’m hoping having a 529 and encouraging the grandparents to contribute will help cut back on too many physical presents.
When it comes to money, what part of having a baby (or raising a kid) feels most stressful?
Even though my job as a librarian is relatively secure, my husband will be the primary caretaker of our kid and I do worry about losing my job or having to change that arrangement. My husband went through a big career shift a few years ago, and he’s been taking classes at community college the last couple of years. It makes sense for him to be the stay-at-home dad for a while, but I’m sure it will be a big adjustment when I go back to work.
How much maternity leave will you take? Is it paid or unpaid?
I’m planning to take three months of FMLA. My employer doesn’t offer paid maternity leave—instead employees have to bank sick leave and vacation days. I have about 10 weeks saved up, so my leave will be a mix of paid and unpaid, and for the last month, I’ll probably also work from home some. I do wish I had more time!
Are you receiving (or will you receive) any family help for paying for baby expenses?
I'll definitely get gifts and baby gear from family members and that will help. Neither side of our family are big on financial gifts, so I don’t foresee that happening.
Can you share how much you’ve spent in preparation for the new baby?
Medical costs: $3,000
Maternity clothes: $300. I got a lot of stuff on clearance and secondhand. On the other hand, it’s so annoying that you can rarely find maternity clothes in person these days.
Nursery gear: $200. People have been generous in buying things off of our registry.
Car seat and stroller: Used from a friend
Baby shower: Provided by work colleagues, family, and friends, so I didn’t spend a thing
Savings accounts: Nothing yet, but I plan to set up a 529 when she’s born.
How much do you discuss the cost of raising a baby with your partner?
It’s definitely not a taboo subject for us. We just don’t really know what to expect or how having a baby will impact our finances. I feel lucky I have good insurance. As for how baby expenses impact our day-to-day lives? I do feel like I’m a bit blind going into this and I don’t know what to expect. But I’m also sure we’ll sort it out.
Navigating your money when you start having kids can be overwhelming. It’s so helpful to see how other families make it work. Want to share your story? Fill out the form here.
Babylist Money is here to help you feel confident managing your family finances, whether you want to understand how a 529 works, open a Trump Account, or start saving for Baby #2.
