Many expectant parents are making significant financial adjustments and reevaluating their financial … [+] strategies as inflation impacts the economy.
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Many expectant parents are making significant financial adjustments and reevaluating their financial strategies as inflation impacts the economy. One of their decisions, while providing short-term relief, has far-reaching consequences.
A recent BabyCenter survey found that nearly three out of four expecting parents make considerable financial sacrifices. The most common are postponing debt payments or shelving plans to clear them.
Delaying debt payments can seem like a necessary relief for new parents, but it comes with significant long-term costs. Financial advisor Jonathan Feniak emphasizes the gravity of this decision:
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“Postponing debt payments can increase the total amount of interest paid and negatively impact credit scores. This can hinder future borrowing opportunities and reduce financial flexibility—making it challenging to manage unexpected expenses or economic downturns. It can hinder parents’ ability to pursue other financial goals, like saving for a child’s education or investing in a home.”
Consider this simplified scenario: An expecting couple decides to delay their $10,000 debt repayment. Originally, they were on a three-year repayment plan at 7% interest, with monthly payments of approximately $308.77, resulting in total interest payments of about $1,115.72. By postponing payments for a year, they shift to a four-year repayment plan, which includes a year of interest-only payments. This adjustment lowers their monthly payments in the short term but increases their total interest to approximately $1,864.48—an increase of $748.76.
Deferment impacts a family’s long-term financial health and resilience and influences broader economic trends. Families delaying major purchases and reducing discretionary spending can suppress overall consumer spending.
Still, financial adjustments are deeply personal, as shared by working father Anthony Dutcher. “Becoming a dad last year was a whirlwind of excitement and new challenges. We relied heavily on credit cards to cover hospital bills, which led us to debt consolidation loans. Not the most glamorous route, but worth every penny for our healthy and happy baby.”
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Working mom Jacquelyn Farnsworth recalls how debt repayment drove her back to work after maternity leave. “I was asked so many times if I was sure that I wanted to go back to work. To me, the question felt like an affront. What choice did I have? We couldn’t pay our bills if I wasn’t working, and now I had medical debt from the birth and a new credit card balance to pay off as well.”
“For me, as well as my wife, the decision to postpone debt payments was driven by the immediate need to cover essential expenses like diapers, baby gear, and those adorable, but sometimes pricey, onesies,” explains working father Nguyen Huy. “Childcare cost was a big factor, too. Looking back, postponing debt payments was a significant sacrifice, but it also taught me valuable lessons in financial management and resilience.”
Whether debt payments are modified or postponed altogether, the choice weighs on family relationships. Financially overstretched families also tend to decrease communication and increase tension, says counselor Shenella Karunaratne. “When partners are both exhausted due to the new baby and also stressed out about money, they often start to talk to each other less. This is the exact opposite of what you should be doing.”
For expecting parents, the first step to adjusting to their new financial reality is reviewing their current budget. Kevin R. Chancellor, a financial advisor, suggests a detailed budget analysis: “Identify necessary adjustments and prioritize spending to maintain a healthy financial baseline.” Strategies such as the ‘snowball’ or ‘avalanche’ methods for debt repayment offer systematic approaches to managing and eventually overcoming debt.
Finance director Adam Horvat also suggests restructuring budgets to accommodate unexpected costs and setting up automated systems to manage savings and debt payments efficiently: “Adopting an envelope budgeting system can help curb overspending on non-essentials, making it easier to allocate funds where they are most needed.”
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Certified financial planner Charlie Pastor recommends considering balance transfer credit cards for short-term relief: “These cards can offer an interest-free period, providing breathing room to settle into the new family dynamics without accumulating interest.”
Postponing debt payments can feel like a quick fix for expectant parents needing some financial breathing room, but it’s crucial to think about the bigger picture. While helpful in the short term, these financial shortcuts can impact the broader economy and their personal financial health down the line.
As families work through these tough times, getting expert financial advice and making a solid plan can really make a difference. The aim is to balance immediate financial relief with long-term stability so families can handle today’s financial challenges while building a strong foundation for the future.
My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
