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No matter how much money you have, or earn, there’s no escaping the fact that pandemic-era inflation still casts a shadow on Americans.

According to Gallup’s annual Economy and Personal Finance survey, affordability has caused a record 55 percent of respondents to say that their financial situation is worsening.

That’s the highest percentage since Gallup started asking about finances in 2001, which means that “consumers are less optimistic than they were during the COVID-19 pandemic in 2020 and the Great Recession in 2008.”

As the cost-of-living climbs, many Americans are asking themselves a hard question: Can I afford to have children?

A new survey from Intuit Credit Karma found that 54% of Gen Zers and 50% of millennials feel pressure to choose between their own financial security and having any or more kids. About two thirds say the cost of raising a child in today's economy feels financially out of reach, and 61% say finances have already influenced a decision to delay, limit, or reconsider having kids.

If you have wrestled with the question and decide to take the plunge, there are ways to financially plan for those kids. Start by tracking your current spending so you understand your baseline. Then calculate the new expenses headed your way, beginning with medical costs.

Be sure to investigate co-pays, deductibles, and what's covered for birthing classes and specialty tests. Add in unpaid time off, clothes, diapers, and food, and assume many of these costs will become part of your monthly budget for a few years. Try to build up your emergency reserve fund before the baby arrives. If cash is tight, trim the non-essentials and focus on the must-haves.

Childcare deserves special attention because costs have soared. A Care.com report found that 78% of parents spend 10% or more of their household income on child care, and 20% spend more than $30,000 a year. To prepare for that massive outlay, do your research, ask your employer about dependent care accounts (which let you save with pre-tax dollars), and look into income-based childcare subsidies.

Given the high cost of child care, some parents say “working just isn’t worth it!” Before calling it quits, run the numbers: Is your take-home pay more than the cost of care plus commuting? Would leaving the workforce mean losing benefits like health insurance or a retirement match? And remember, stepping away from work — even temporarily — can reduce your future earning potential.

A newborn can also bring up the worry about future education costs. While you may be inclined to start early, first cover the “Big Three”: build an emergency fund with 6-12 months of expenses, pay down consumer debt, and fund retirement enough to get the full employer match.

If you've checked those boxes, a 529 plan is the most tax-efficient way to save for education. Contributions grow tax-free, and withdrawals for qualified expenses come out tax-free too.

You may have also heard about the new Trump Accounts, which officially launched this summer for children under 18. There is a special benefit for those born between January 1, 2025, and December 31, 2028: The government will deposit $1,000 for free! Parents, employers, or family members can contribute up to a total of $5,000 a year. Although these accounts are meant to be for retirement, money can be withdrawn for education without penalty, but the proceeds will be taxed as ordinary income.

Finally, don't skip term life insurance for both working and non-working parents, and take care of estate planning, including a will with guardianship instructions, a power of attorney, and a health care proxy.

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(Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com)

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