Starting a Family

Building Savings for Your Bundle of Joy

Before your baby's first steps, start taking a few of your own.

Starting a family is a major step. With a growing family, your goals and priorities can change quickly. While you could earn and spend your money as you'd like before, you now have to make sure that your family's needs are met first.

Preparing for Parenthood

Successful financial planning for your new family needs to be flexible and evolve with your life. But it's essential to have a solid grip on your finances and to follow best practices to ensure a comfortable and financially secure life for your family. Whether you're planning for your first or your fifth, take time to budget for your growing family—that includes planning for college expenses, considering tax implications and insuring your collective future.

  1. Adjust Your Budget

    Ramp up savings and reallocate spending to cover the jump in food and clothing costs, as well as new expenses such as diapers and child care.

  2. Update Insurance Options

    Look at your current health insurance arrangements and understand your coverage options for childbirth. Update them accordingly and budget for anything that won't be covered. Revisit your life insurance policies, wills and retirement plans to update your beneficiaries. If you haven’t already set up these documents, now is the time to do that.

  3. Plan Your Leave

    Does your employer offer maternity or paternity leave? Determine what you can afford to take and understand that you may have to make some tough choices about when you return. Weigh the options when it comes to child care as well, including how feasible it is for one parent to stay at home with the child.

Future Finances

In addition to managing your own finances, set aside funds so that your child has money of their own to learn responsible money management as they grow.

  • Saving Account

    Consider opening an account like our Basic Savings or SaveFirst accounts in your child's name to start saving birthday money and other gifts for your child. As your child and their savings grow, take the time to teach them responsible money habits, setting the foundation for a solid financial future.

  • Custodial Accounts

    Custodial Accounts, which are another good option, administer gift money to a child with potential tax savings. These accounts allow you to choose the age at which the child can access the money, typically 18 or 21. Then, if the child is eligible or already a Navy Federal member, the account can be transferred into their name.

  • Certificates

    You can build up their savings with one of our certificate options. Certificates start with a deposit, which accrues interest during the term of the certificate. Our EasyStart℠ Certificates is an excellent option to get things growing and requires only $50 to start with a 6, 12, 18 or 24-month term.

  • Education Savings

    Look ahead to future education expenses with an Education Savings Account (ESA), which offers tax-free savings when the funds are used for education costs. Another option to consider is a 529 Plan, which is a tax-advantaged savings plan exclusively for future college costs. A financial advisor can assist you with setting one up.

  • Investments

    Navy Federal Financial Group, our wholly owned subsidiary, has representatives who can help you create a portfolio to build savings for yourself and your children.

Tax Implications

Having a child affects your taxes. Take time to familiarize yourself with these tax tips for new parents ahead of time.

Learn more about tax implications


Savings as high as+ 0.70% APY

Auto Loans as low as+ 1.79% APR

Certificates as high as 3.50% APY

Credit Cards as low as++ 5.99% APR

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