Want the good news first?
Memphis is the most affordable metro area, according to a study by SmartAsset for raising a child, at $19,922 a year.
Bad news: That’s up $1,245 from 2025. But compare that with the nation’s highest annual cost: $43,171 in the San Francisco-Oakland-Fremont metro, which is more than twice the cost in Memphis. From that perspective, there’s plenty of good news for families who call the Bluff City home.
Other interesting findings from the recent SmartAsset study:
Only two metro areas saw the cost of raising a child decline from 2025 to 2026: Richmond, Virginia, and Virginia Beach-Chesapeake-Norfolk. Costs largely remained the same year-to-year in the nearby Washington-Arlington-Alexandria and Baltimore-Columbia-Towson areas.
In the Indianapolis-Carmel-Greenwood metro, the cost of raising a child jumped nearly 21 percent between 2025 and 2026, the largest increase in the study.
Whether you’re planning a family or already have children, take time to consider how your financial needs will change. Doing so can help you set priorities and strengthen your family’s financial future.
Preparing now ensures you’re ready for the financial changes that come with having or growing your family. Here are a few places to start:
Look into employer benefits.
• Health Savings Account (HSA): Set aside pre-tax money for qualified healthcare expenses, with funds that roll over year to year.
• Medical FSA: Use pre-tax dollars for qualified healthcare expenses; funds generally must be used during the plan year.
• Dependent Care FSA: Set aside pre-tax money for eligible childcare expenses, such as daycare or summer camp.
• Adoption Assistance: Some employers help cover eligible adoption costs, including agency, legal, and travel expenses.
Forecast expenses as much as possible. Having a child changes your family’s expenses and financial future. Prepare for these additional costs by setting a budget, defining financial goals, and building short-term or emergency savings in a high-yield savings account with easy access to cash and no market risk. Also consider these questions:
Will you and your partner continue working and earning the same income? Will you need childcare? How will future costs, such as education and extracurricular activities, affect your finances?
Start saving for your child’s education. 529 savings plans are tax-advantaged accounts that help you put money away for future education costs. Money that’s saved in a 529 plan grows tax-free and can also be withdrawn tax-free if you use the funds to pay for qualified higher education expenses like tuition, mandatory fees, and books required for enrollment.
Annually assess health insurance coverage. If you’re pregnant, or you and your partner are planning to become pregnant, check the level of coverage your health plan provides for prenatal care, maternity care, labor, and delivery. Note that while these services must be covered, they are rarely free. You usually still pay your deductible, copays, and coinsurance for hospital stays, doctor fees, and surgical procedures like C-sections.
Tip: It’s also a good time to compare coverage with your spouse or co-parent and decide which plan offers the best coverage for your growing family.
Remember your retirement. You’ll have more financial responsibilities as a parent, but saving for retirement should still be a priority.
Whether you’re buying a home, preparing for a new arrival, or looking for ways to protect your family, the right financial guidance can help you feel more confident. A financial advisor can help you navigate these decisions, build a plan around your goals, and adjust it as your family grows.
Lindsey D. Rhea, CFP, is owner and wealth strategist at Alia Wealth Partners, connect@aliawealth.com.
