Planning for parenthood: A financial roadmap for new mothers

New mothers often prioritize their child, but couples must plan for both partners’ futures.

Becoming a mother is a profound journey, filled with joy, accompanied by responsibility, and financial demands. In India’s evolving social landscape — marked by nuclear families, dual-income households, and rising costs — new mothers must prioritise financial planning with active spousal involvement. Smaller families, working mothers, and reliance on paid childcare necessitate a collaborative approach.

Understanding the financial impact of parenthood

Parenthood brings substantial expenses, from prenatal care to education and childcare. A 2023 report estimates raising a child in urban India until age 18 costs ₹50 lakh - 70 lakh, covering healthcare, education, and lifestyle. For new mothers, balancing careers or maternity breaks, managing these costs requires teamwork. Spouses must align on financial priorities, particularly in nuclear setups with limited familial support, ensuring shared responsibility through open communication.

Step 1: Build a joint emergency fund

An emergency fund is vital for new mothers facing unexpected costs, like medical emergencies or childcare. Couples should save six months’ worth of household expenses in a liquid mutual fund. For monthly expenses of ₹50,000, target ₹3 lakh-6 lakh. Spouses can contribute based on income or split equally, discussing savings prioritisation. Joint reviews ensure meeting evolving needs, fostering shared security.

Step 2: Get health and life insurance

Insurance safeguards the family’s future. Couples should evaluate health insurance plans covering maternity, neonatal, and pediatric care, with ₹10 lakh- 20 lakh family floater plans ideal for urban families. Check waiting periods (9-24 months). Both partners should consider term life insurance, especially if both are earning. As a thumb rule, a term plan with 10-15 times annual income (e.g., ₹1 crore - 1.5 crore for a ₹10 lakh earner) should be sufficient to secure the child’s future expenses.

Step 3: Plan for maternity and career transitions as a team

India’s Maternity Benefit Act provides 26 weeks of paid leave, but career breaks or flexible work can reduce income. Couples should budget by cutting non-essentials before delivery. One should budget childcare costs at ₹ 5,000- 20,000/month in urban daycare) while managing finances during leave by redirecting income to these items. If the mother plans a break, explore freelance options together, ensuring financial stability through shared decisions.

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Step 4: Invest early for the child’s future

Education costs rise at 10-12 percent annually, making early investment crucial. Couples can start SIPs in equity mutual funds for goals like college. For example, ₹10,000 monthly at 12 percent returns could grow to ₹50 lakh in 15 years. For a girl child, you can open a Sukanya Samriddhi Yojana account (8.2 percent interest in 2025). Spouses should decide contribution splits and review investments together, balancing equity funds with PPF for alignment.

Step 5: Budget for lifestyle and pregnancy-related changes together

Pregnancy and parenthood alter spending. Couples should budget for pregnancy-related expenses like supplements (₹1,000-2,000/month), extra food (₹2,000-3,000/month), and maternity wear (₹5,000-10,000 total). Post-delivery, factor in diapers (₹2,000-3,000/month) and vaccinations. Discuss priorities—saving for a home or activities—and allocate funds. Joint budgeting prevents overspending and fosters unity.

Step 6: Balance personal growth and retirement planning

New mothers often prioritise their child, but couples must plan for both partners’ futures. Continue SIPs and contributions to EPF or NPS. Spouses should support career growth, funding certifications to boost employability post-maternity. Discussing retirement goals ensures long-term security for both.

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Step 7: Seek professional guidance as a couple

Financial planning is complex with parenthood’s demands. Couples should consult a SEBI-registered financial advisor to craft a tailored plan, optimising tax savings under sections 80C (PPF, ELSS) and 80D (health insurance). Joint advisory sessions ensure alignment. Annual review of the plan will keep the strategy relevant, with spouses sharing responsibilities.

Step 8: Plan for nominations and basic estate planning

While it may seem early, couples should consider basic estate planning, such as nominations in investments, to ensure the child’s financial security. Nominate the child or spouse in bank accounts, mutual funds, insurance policies, and PPF accounts to ensure seamless asset transfer in unforeseen events.

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Building a strong future together

Financial planning empowers new mothers to embrace parenthood confidently, but spousal collaboration transforms it into a shared journey. In India’s dynamic context, with dual careers and nuclear families, teamwork is essential. By building an emergency fund, securing insurance, investing, budgeting for pregnancy, balancing personal growth, and planning nominations—all through open communication—couples can create a secure, fulfilling life for their family. Start today, together, for a financially resilient tomorrow.

The writer is Founder and CEO of Scripbox.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.