Should I Be Budgeting Differently Now That I’m a Mom?
True Root Financial is a financial advisor and financial planner based in San Francisco, CA. We serve clients across the globe.
I always thought I had my finances under control. As a tech professional in California, I had a solid salary, a well-funded retirement plan, and a clear investment strategy. I knew how to maximize my RSUs, minimize my tax burden, and optimize my spending so I could enjoy life without financial stress.
Then, I became a mom. And suddenly, everything changed!
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Watch our quick video to learn how a 529 plan can be your smartest first step toward securing your child’s future, without sacrificing today’s financial balance.
A Budget That Reflects Motherhood
Motherhood is one of the most rewarding experiences of my life, but it has also made me rethink everything I thought I knew about money. Expenses I had never considered before—diapers, childcare, medical bills, life insurance—started piling up. My financial goals shifted from optimizing my portfolio to making sure my child has everything they need, now and in the future.
1. Childcare Costs Are No Joke
If you live in California, especially the Bay Area, you probably already know that childcare is a major expense. According to recent studies, full-time daycare can cost anywhere from $2,500 to $3,500 per month in cities like San Francisco. If you’re considering a nanny, expect to pay even more.
For many parents, this is a financial shock. Some moms even consider scaling back their work hours or taking a career break to reduce childcare expenses. But before making any decisions, it’s important to look at the long-term impact—both financially and professionally. A financial advisor can help assess whether continuing full-time work, adjusting hours, or even exploring alternative childcare options makes the most sense for your situation.
2. Health Insurance and Medical Costs Skyrocket
If you’re in tech, you likely have great employer-sponsored health insurance, but that doesn’t mean all baby-related expenses are covered. Medical bills from prenatal care to delivery and pediatric visits add up fast. And if your child ever needs specialty care, those costs can escalate even more. Many new parents also start contributing to a Health Savings Account (HSA) or Flexible Spending Account (FSA) if their employer offers one.
3. Life Insurance and Estate Planning Become Urgent Priorities
Before becoming a mom, I rarely thought about life insurance or estate planning. But once my child was here, I couldn’t ignore the “what if” questions. What if something happened to me? Would my child be financially secure? Would my partner (or whoever is caring for my child) have enough to maintain our quality of life?
These aren’t fun topics, but they’re essential. Many tech professionals accumulate wealth through stock options, RSUs, and 401(k)s, but without proper planning, these assets may not be easily accessible to your child in case of an emergency. A financial advisor can help set up trusts, name the right beneficiaries, and ensure your family’s financial future is protected.
4. Saving for College: Is a 529 Plan the Right Move?
As soon as I announced my pregnancy, well-meaning family members started telling me to open a 529 college savings plan. While these tax-advantaged accounts are a great option for some families, they aren’t the only way to save for a child’s education, especially if you’re a high-income earner in tech.
Go through our latest blog to learn more about What you should do to manage your finances as a new parent.
Some parents prefer to invest in taxable brokerage accounts for greater flexibility, while others focus on real estate or other assets. There’s no one-size-fits-all solution, which is why talking to a financial advisor can help tailor an education savings plan that aligns with your financial goals.
5. Your Retirement Plan Needs Adjusting
With all the new expenses that come with having a child, it’s easy to deprioritize retirement savings. But here’s the thing: there are no scholarships or loans for retirement. You need to keep yourself financially secure before you can fully provide for your child’s future.
For tech professionals, this means reevaluating contributions to 401(k)s, IRAs, or even backdoor Roth IRAs if your income is above traditional contribution limits. If you receive RSUs or stock options, it’s also a good time to review your vesting schedule and tax strategy to ensure you’re maximizing your earnings efficiently.
The Emotional Side of Budgeting as a Mom
Adjusting my budget wasn’t just a numbers game, it was an emotional process. I had to let go of the guilt of not being able to “do it all.” I had to accept that I couldn’t spend the way I used to and that priorities had changed. And I had to remind myself that financial planning isn’t about restriction, it’s about making sure my family has security and options in the future.
I also realized that I needed professional guidance. Even though I’m financially savvy, there were too many moving parts to figure out alone. Working with a financial advisor gave me clarity, confidence, and a plan tailored to my new reality.
Why You Should Talk to a Financial Advisor Now?
If you’re a new mom in tech, chances are you’re juggling a demanding career, sleepless nights, and a whole new set of financial responsibilities. It’s overwhelming, but you don’t have to navigate it alone. A financial advisor can help:
- Create a budget that accommodates your new priorities without sacrificing long-term goals
- Optimize your investments, RSUs, and tax strategy
- Plan for major expenses like childcare, education, and healthcare
- Ensure your child is financially secure in any scenario.
Next Steps For You
Motherhood changes everything, including how you manage your money. The sooner you adjust your financial strategy, the more confident you’ll feel about your family’s future. You’ve planned for everything else in your career, why not plan for this next chapter, too? Book a call below with fee only a financial advisor.
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