How 5 Parents Saved for the Unexpected Costs of Starting a Family

Becoming a parent reshapes your priorities overnight. The tiny human you bring home suddenly becomes the center of your world—and your budget. Diapers, daycare and pediatrician visits are expected. But it’s the in-between expenses—the urgent care visit for a sudden fever, switching formulas, replacing a broken pump part or paying for backup childcare when daycare closes—that can add up quickly. That’s where an emergency fund can make all the difference.

An emergency fund is money set aside in a dedicated account to help cover life’s surprises. Some are “spending shocks,” like an unexpected medical bill. Others are “income shocks,” like reduced hours or job loss. Having savings in place doesn’t eliminate the unexpected—but it can help you focus on your child instead of worrying about the tradeoffs. 

Choosing the right place to keep those savings matters, too. Options like the Vanguard Cash Plus Account, a savings account alternative, can help families manage their emergency savings while keeping their cash and investment accounts in one place at Vanguard. 

We teamed up with Vanguard to talk to real Babylist families about how they built their family’s first emergency fund: what motivated them to start, the setbacks they navigated and the small, practical steps that helped them create a financial safety net during a season of big change. Read their stories and the advice that helped them move from “we should probably start saving” to actually building a cushion that lets them breathe a little easier.

Tip #1: Start saving sooner than you think 

Latifah was 23 when she found out she was pregnant. “Prior to having kids, my relationship with money and savings was pretty bad,” she said. After a few early emergencies, she shifted her mindset. “No matter how tight things were, I needed to find room to stow away a few dollars here and there and not touch it.”

Later, when planning a move, she saved aggressively so she wouldn’t drain her rainy-day fund. “Saving money is a habit,” she said. “Once you make it a habitual expectation for yourself, it's easy to do.” — Latifah Miles, Mom of 2 (with one on the way)

How to Start: You don’t need a windfall to begin. Even small increases can make a difference. Saving just 1% more of a $50,000 salary works out to about $9.61 a week—less than the cost of a takeout meal. If increasing your savings feels tight right now, consider directing part of your next raise, bonus or tax refund toward your emergency fund instead. Small, steady deposits can build confidence—and momentum—over time.

Tip #2: Assess what you actually spend

For years, Shannon Robson told herself she was “bad with money.” “I didn't feel like I was a good saver or planner,” she said. “But when a baby came along, it felt like we had to get serious.” When she was laid off shortly after her baby was born, she realized how quickly circumstances can shift. “Forcing ourselves to look at the numbers… was one big step toward feeling more in control.”— Shannon Robson, Mom of 1

How to Start: Before setting a savings goal, understand what you spend each month. Add up fixed expenses (like rent, mortgage or daycare) and variable ones (like groceries, diapers and utilities). Vanguard’s expense worksheet can help you total your monthly costs and estimate how much you’d need to cover a disruption. Clarity is often the first step toward feeling empowered—especially since many women already serve as their family’s “CFO.”

Tip #3: Set a goal that helps you sleep at night

Before kids, Steven felt reasonably prepared. “I had basic savings—a three-month emergency fund,” he said. But once his son was born—and another baby was on the way—that didn’t feel like enough. “There wasn’t a specific catalyst, more so just anxiety over something going wrong.” He and his wife recalculated their expenses and set a new goal: eight months of coverage. — Steven Torrence, Dad of 1 (with one on the way)

How to Start: Many families aim to save three to six months of expenses for income shocks, but your target should reflect your comfort level. Wherever you keep your savings, consider a high-yielding option so your money has the potential to grow through compounding over time. The sooner you start, the more opportunity your savings may have to work for you.

Tip #4: Choose an account that matches your timeline

For Darlene, financial planning equals security. “Money has always represented security and optionality to me,” she said. When she and her partner began planning for a baby through IVF, future costs felt immediate. “We intentionally built [our emergency fund] up even more.” — Darlene Reina, Mom of 1

How to Start: Different family needs call for different account types. For short-term savings—like covering medical bills, replacing essential baby gear or navigating childcare gaps—a cash management option like the Vanguard Cash Plus Account can help you conveniently manage your emergency savings in one place. If you’re comfortable without FDIC coverage, brokerage accounts may offer additional cash investment options, such as certificates of deposit (CDs) and money market funds, which can provide different ways to save depending on your needs and timeline.

Tip #5: Rebuild after you use it 

Deanna said her pre-baby money habits were “very poor.” “I used most of my extra income to travel,” she said. But after her baby arrived, both she and her husband were laid off. “We realized we needed an emergency fund to weather storms.” Now, even after tapping their savings during tough periods, rebuilding it is part of their plan. — Deanna Gurung, Mom of 1

How to Start: Emergency funds aren’t one-and-done. If you need to use savings during a layoff or major expense, make replenishing it your next milestone. Keeping your emergency fund in a high-yield savings option can help your balance  grow while remaining designed to help you manage surprise cash needs.

A plan that grows with your family 

Building an emergency fund for your family starts with understanding what life with a baby truly costs—and deciding what kind of stability you want in place for midnight fevers, daycare deposits or unexpected job changes. Vanguard’s expense worksheet can help you estimate monthly household costs and determine a savings target that fits your stage of life.

From there, choosing a savings option—like the Vanguard Cash Plus Account—can keep your emergency fund in one convenient place while your balance has the potential to grow. The goal isn’t perfection. It’s progress. With a plan in place, you can move into parenthood feeling steadier, more confident and ready for whatever comes next.

This article is sponsored by Vanguard Group Inc. (VGI). Babylist’s free site, apps and emails are made possible by our sponsors. We limit our sponsored content to relevant partners that offer products and services we believe in and use ourselves.

 Vanguard’s Cash Plus Account is a brokerage account offered by Vanguard Brokerage Services, an affiliate of VGI and a division of Vanguard Marketing Corporation, member FINRA and SIPC. The Cash Plus Account may differ from high-yield savings accounts or other bank accounts in various ways including what fees apply and whether services like check-writing are available. You may want to consider those differences before choosing which option is best for you.