The Newborn Money Checklist: 7 Money Moves in Your Baby's First Year

The newborn months are a blur of feedings and sleep math, so "set up the finances" rarely makes it to the top of the list. But the first year is genuinely the best time to lay the money foundation — every account you open now gets the maximum runway for compounding, and a few of these steps have real deadlines. Here's the practical checklist, in roughly the order it makes sense to tackle it.

1. Get the Social Security number

Almost everything else depends on it. You can request an SSN as part of the birth-registration paperwork at the hospital — the simplest path. You'll need it to open any account in your child's name, claim tax benefits, and set up the items below.

2. Claim the Trump Account seed (if eligible)

For eligible children born 2025–2028, the federal Trump Account program seeds $1,000 — but it isn't automatic. There's a claim step (via Form 4547) and a window, so this is the one with a clock on it. Free money with a deadline goes near the top of any first-year list. Details and the current timeline are in our Trump Accounts guide.

3. Open an account for the long goal

With 18 years of runway, this is where compounding has the most room to work. Match the account to your goal:

• Education-focused? A 529 plan grows tax-free for school and keeps you in control.
• Want flexibility? A UTMA can hold investments for any purpose, with the trade-offs we cover in its guide.

A custodial Roth IRA isn't in play yet — that one needs earned income, which a newborn doesn't have. File it away for the teen years.

4. Set one small recurring contribution

The amount matters far less than the consistency. A modest automatic transfer — even a few dollars a week — started in year one and left alone is the move your kid will quietly thank you for in two decades. This is compound interest doing what it does best: rewarding time.

5. Sort the "just in case" paperwork

Less fun, equally important. Three things to put in place while you're thinking about it:

• A will that names a guardian for your child.
• Beneficiaries updated on your existing accounts and any life insurance.
• Life insurance sized to actually cover your family if the worst happened.

None of this is about investing returns — it's the floor that makes everything above it safe.

6. Point grandparents in the right direction

Relatives often want to give, and a newborn doesn't need a fourth set of onesies. Having an account ready means a birthday or holiday gift can go straight into something that compounds. (Where it lands can also affect college aid later — see our financial-aid guide.)

7. Start the habit you'll keep for 18 years

The last item isn't a task, it's a posture: decide now that this money will be visible. The parents who raise confident young savers don't spring a surprise account on an 18-year-old — they let the kid watch it grow for years. Starting that habit in year one is free, and it's the whole reason we built MemoryBank.

The first-year checklist, at a glance

1. Request the Social Security number.
2. Claim the Trump Account seed if eligible (mind the deadline).
3. Open a 529 or UTMA for the long goal.
4. Automate one small recurring contribution.
5. Put a will, guardian, and beneficiaries in place.
6. Give grandparents an easy way to contribute.
7. Make the money visible — start the 18-year habit now.

Frequently asked questions

What financial accounts should I set up for a newborn?

Start with the Social Security number, since almost everything else depends on it. Then claim the Trump Account $1,000 seed if your child is eligible, open a 529 or UTMA for the long goal, set one small recurring contribution, and put a will, guardian, and beneficiaries in place.

How do I get a Social Security number for my baby?

The simplest path is to request the SSN as part of the birth-registration paperwork at the hospital. You'll need it to open any account in your child's name, claim tax benefits, and complete the rest of the first-year checklist.

What is the Trump Account seed and does my baby qualify?

For eligible children born 2025–2028, the federal Trump Account program seeds $1,000 — but it isn't automatic. There's a claim step (via Form 4547) and a window, so it's the one first-year item with a deadline attached.

Can a newborn have a Roth IRA?

No — a custodial Roth IRA requires earned income, which a newborn doesn't have. File that one away for the teen years, when a job or self-employment income opens the door.

Should I open a 529 or a UTMA for my baby?

It depends on the goal. A 529 plan grows tax-free for school and keeps you in control, while a UTMA can hold investments for any purpose — with trade-offs covered in its own guide. Either way, with 18 years of runway, the long-goal account is where compounding has the most room to work.

How much should I contribute to my newborn's account?

The amount matters far less than the consistency. A modest automatic transfer — even a few dollars a week — started in year one and left alone gives compound interest the maximum runway to do its work.