I have a newborn and am trying to think about financial planning for my family. What are some tips to save and earn?
I am an expectant dad and will welcome my first daughter in April. Between hospital bills, diapers and the tiny shoes that somehow cost more than mine, I have been thinking a lot about our family’s finances.
Tip 1: Start small but early with savings.
Open an investment or savings account for your child, even if you can only set aside a small amount now. Research shows that children who know they have savings set aside for their future are more likely to pursue education or training, feel confident about their prospects and make long-term plans.
Financial literacy also works better when a child has some stake in the game. Teaching kids about saving when they know their family has no money can feel like teaching someone who is starving how to cook gourmet meals. An early investment account gives kids something tangible to protect and plan around.
This is not about instant wealth. It is about creating a sense of possibility at a time when many young people feel overwhelmed by debt, housing costs and economic uncertainty before they even reach adulthood.
Tip 2: Focus on stability first.
Don’t get too ahead of yourself. Before worrying about college funds or investments, make sure your basics are covered. A small emergency fund, enough to handle surprise medical bills, car repairs or unpaid parental leave, can be a huge stress reliever.
You can also get help from programs like SparkPoint OC, which supports hardworking Orange County residents by connecting them with dedicated financial case managers who assist in improving credit, increasing income and decreasing debt. Through this personalized support, individuals gain the tools and confidence needed to achieve their financial goals and build a more secure future for themselves and their families.
Tip 3: Utilize state and federal programs.
Federal and state programs can help get you started saving for your children. My daughter will qualify for a $1,000 investment account funded by the federal government once she is born. A federal program that helps kids start adulthood with a financial head start feels refreshing.
The program is called Trump Accounts. Once fully implemented, every child born in the United States between Jan. 1, 2025 and Dec. 31, 2028, will be eligible for a federally seeded savings account that starts with $1,000 and applies retroactively to births during that window.
Trump Accounts are designed to give children a small but meaningful financial asset at birth. The accounts will be administered by the U.S. Treasury, which is still finalizing rules around enrollment, access and investment options.
Parents and guardians will be able to claim and manage their child’s account beginning July 4, 2026. Until then, accounts tied to eligible births will be established and held on behalf of children.
Families can contribute up to $5,000 per year and employers up to $2,500 annually. At age 18, funds can be used for higher education, job training, starting a business, a down payment on a first home, or left invested to continue growing. Unlike college-only savings plans, these accounts are intentionally flexible and designed for long-term wealth building.
Additionally, CalKIDS is a state program that automatically opens accounts for newborns and low-income, public-school students and seeds them with up to $1,500. Since launching in 2022, CalKIDS has created nearly four million accounts and holds more than $2 billion in assets, demonstrating that early savings can work at scale.
By saving strategically, using available programs and planning ahead, you can give your growing family a stronger, more secure start.
Andrew Fahmy is the executive director of Orange County United Way’s United for Financial Security initiative.
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