Financial Considerations of a Second Child

Deciding to Have a Second Child

How are you going to afford this little guy?

They say going from one child to two is almost as big of a lifestyle change as going from none to one.

We're about to test that theory out. We are due any day now. Our finances will have to change as well.

So how did I prepare for this second child financially speaking? To be honest, I didn't do much. Here are a few of my moves:

1. Bumped up the health savings account. We'll be paying a bit more out of pocket this time around, so I wanted to make sure we could use tax-free dollars to make those payments. We got rough estimates from our doctor and hospital so we knew what we would need.

2. Opened a second 529 plan. I actually opened up this college savings plan back when our first child was born. It's been in my wife's name since that time. We will just switch it to our new child when we get a social security number.

3. Invested in a double stroller. Definitely a want vs a need. We sold our old stroller on craigslist and used the proceeds to help buy a new double stroller. This has been and should be the only significant equipment/furniture upgrade we'll be making.

4. Will be adding on a new dependent. Finally, once our little one is here with us, we'll add a new dependent to our health insurance and term life insurance. Also, once I take on the task of completing a will, both our children will be added in.

Since our second child is also a girl, we won't need to buy that many clothes. Also, our friends and family threw a very generous diapers and wipes shower that helped out a great deal.

Did I miss anything? What else should I be considering financially when it comes to a second child?

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Last Edited: February 12, 2018 @ 5:51 pm The content of is for general information purposes only and does not constitute professional advice. Visitors to should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Philip Taylor

Philip Taylor, aka "PT", is a CPA, financial writer, podcaster, FinCon Founder, husband, and father of three. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or Google+. Listen to the new podcast, Masters of Money!


  1. Have you considered bumping up the 1st child’s 529 plan as well?

    If you overfund the first child’s plan, you can still transfer any remaining balance to the 2nd child (or third child) in case the first one doesn’t use all the funding. This way you can pay for one of your children’s masters or doctorate degree!

  2. Thanks for mentioning the carnival!

  3. We’re on three so it can be done. Besides, they always say to work your passion. Yes, kids are work but it’s GOOD work.

  4. Don’t scare me like that.

  5. If you had a job? Dude, you’re about to be working twice as hard!!

  6. Thanks for the love, guys. Craig, that’s an excellent point. I get another deduction! If I had a job I would definitely go update my W-4.

  7. Another thing to consider is to change your withholding once the little one arrives. You’ll need every dollar!

    Due any day, huh? Best of health to all!

  8. Congrats on the second baby Phil. When (and if) I ever have kids I love the fact that I have so many friends online to turn to for help.

    Thanks for the mention and continued support.

  9. Big step, Phil, and congratulations! My wife and I are talking about the logistics of having another child and trying to plan when might be a good time (as if that always works!) 😉

    Hope all goes smoothly!