Ask AI Advisor: What Holiday Spending Advice Should I Give Loved Ones Expecting a Baby?

It’s the giving season, and here at Origin we’re focusing on ways that we can give our members the tools to pay it forward. We’ve shared some strategies from our in-house Certified Financial Planners® on how to give generously and celebrate meaningfully without derailing financial goals, and now we’re putting our industry-leading AI financial advisor to work for you and your loved ones. With all the joy this time of year brings, it can also come with stress and anxiety — especially after the inflation, layoffs, tariff talk, and resulting market swings of the past few years.

So with that in mind, we turned to AI Advisor for help on some of the trickier situations you or your loved ones might be experiencing this year. Here, we’re exploring advice on budgeting and spending at this time of year. 

Keep this advice in mind for conversations over the next few weeks, and check out AI Advisor’s answers to other tricky topics for spending this time of year: layoffs and job searches, upcoming retirement, budgeting and spending, and worries about a potential AI bubble. We also hope that this inspires you to ask AI Advisor for guidance on other financial and economic hurdles impacting you, your family or friends. 

***

Regarding spending at this time of year, what advice would you give to people expecting a child in the next six months? 

‍Remember: Baby costs are coming up — fast. Typical first-year baby expenses will range between $16,900 and $28,000 without childcare. If you need childcare, that range jumps to $20,000-$50,000. 

Before the baby even arrives, you'll face immediate costs: delivery averages $4,000 after insurance; initial gear like cribs and car seats averages $1,200; and your first three months of basic supplies (diapers, formula, clothing, and miscellaneous supplies) run $968. 

That’s $6,168 in immediate expenses likely hitting within weeks of birth.

‍Build your baby fund now. You need roughly $1,935 to cover six months of basic baby expenses (with no childcare) or $10,935 for six months with childcare. Every dollar saved now is a dollar you won't need to scramble for when you're sleep-deprived with a newborn.

Your emergency fund also needs updating to be able to cover these new baby expenses, and spending too much at the holidays makes hitting that new target harder. 

‍Cut holiday spending dramatically this year. The average household spends $2,100 on holidays. Cutting that to a conservative $800 saves $1,300 — or enough to cover 13 months of diapers or eight months of formula. Focus gift-giving on immediate family only, skip elaborate decorations, and host simple gatherings at home. 

‍The bottom line. Every dollar you redirect from holiday spending to your baby fund is a dollar of breathing room when delivery bills arrive, when you're on parental leave, or when your baby needs an unexpected pediatrician visit. Six months from now, you'll be grateful you prioritized preparation over celebration.

***

AI Advisor gives realistic advice about real financial concerns you may have — or topics you want to be able to advise parents, siblings, or friends on when you meet up to celebrate this holiday season.

Ready to take control of your wealth building journey? For a limited time only, you can join Origin for just $1 for the first year. 

Or if you’re already a member, refer your friends and family, and get your next year of membership for just $1.