It seems like everything these days is expensive, and having a baby is no exception. The rising cost of goods means you can expect to pay more for necessities such as baby food and diapers, and additional expenses like out-of-pocket hospital bills remain staggeringly high. The bigger bottom line makes it even more important that expecting parents get a realistic idea of what they'll actually need to spend.
The good news is tiny babies don't need a ton of stuff. While there are some key items that you definitely need (such as an infant car seat and a safe sleeping space), the list might not stretch as long as you think. Other monthly recurring costs, like child care, vary widely based on your family's needs and where you live.
So, how much can you expect to spend in total, and where are the areas where you might be able to save? Here's a look at the financial side of your baby's first year and how much you'll want to set aside for your new bundle.
How much does it cost to give birth?
Prepare for some sticker shock: The health costs associated with both pregnancy and childbirth average almost $19,000, according to a July 2022 analysis released by the Kaiser Family Foundation. While the good news is that health insurance covers on average about 85 percent of the total cost, you can still expect to pay about $3,000 out-of-pocket.
That said, costs do vary by delivery type. If you give birth via C-section, you can expect that your health care costs will be on average about $26,280 more than a woman of the same age who doesn't give birth at all, with around $4,214 of that out of pocket. If you have a vaginal birth, it's $14,768 more, including about $2,655 out of pocket.[1]
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The cost of your labor and delivery can also vary depending on what part of the country you live in. For example, a 2020 report found that the average cost of childbirth admission for a woman with employer-sponsored insurance was $13,811, but the out-of-pocket amount ranged from around $1,000 in Washington D.C. to about $2,500 in South Carolina.[2]
How much does it cost to have a baby?
A middle-income family can expect to spend an average of $13,000 on their child per year, according to the most recent U.S. Department of Agriculture (USDA) report from 2017. But that number has risen to about $18,270 a year — or about $1,522 a month — thanks to inflation, according to 2022 figures from the Brookings Institution.[3] That's a 9 percent increase, and the total doesn't factor in the cost of giving birth, as mentioned above.
Parents today also report spending about 27 percent of their total income on their baby, according to a survey conducted by Everyday Health Group – Pregnancy and Parenting from August 8 to 21, 2022 on BabyCenter and What to Expect websites and apps.[4] And sadly, more than half (54 percent) of the 1,515 respondents — who are pregnant or have babies up to 1 year old — say they’re worried about managing a family budget and daily expenses due to inflation.
Essential baby costs
While those big numbers can sting, there are ways to save, and you won't shell it all out at once. You'll need a few key items for getting through that first year, both at home and on the go. Here's what you can expect to spend.
Car seat
An absolute must as hospitals won't let you take a baby home without one, an infant car seat generally costs between $80 and $400. Don't fret if you can't afford one on the higher end of the range. All car seats sold in the United States have to meet the exact same safety standards.
And keep in mind: This baby gear essential is something you'll want to buy new. Secondhand car seats or those purchased a few years ago may have been built to outdated safety standards or may have too much wear and tear to be safe.
Stroller
Infants need a sturdy, supportive stroller that fully reclines (a must for a newborn). These start around $100, but luxe models can go up to about $1,000.
Once your baby gets a little older and can sit up on her own, you can opt for an inexpensive umbrella stroller ($25 to $100). This style is smaller, lighter and easier to push around.
Bassinet
The safest place for your baby to sleep is on her back in her own separate sleep space in your bedroom for at least the first six months, according to 2022 guidelines from the American Academy of Pediatrics.[5]
Bassinets, mini cribs and playards can all get the job done. Budget options start around $70, with most models costing between $150 and $250. But prices can go as high as $650 or more for high-end options with all of the bells and whistles (for example, a bassinet that clips into a stroller).
Baby monitor
Even though you'll likely spend the vast majority of your days (and nights) in close proximity with your baby, having a monitor from the beginning means you'll be able to keep an ear (and eye) on her.
Basic audio-only models start as low as $25, while audio-plus-video models with extra features like wireless network capability, multiple handsets and high-definition imaging can drive the price up to around $400.
A safe place to put your baby
Even if you want to cuddle 24/7, you'll need a safe, comfy spot for your baby to go when she can't be in your arms. Low-tech options like baby mats or cushions can cost as little as $30.
Thinking about a baby swing? Base models start around $70, but many cost between $120 and $150. A baby carrier or ring sling can also be helpful when you want to keep your little one close but need use of your hands.
Diaper costs
Ask a bleary-eyed new parent about the cost of a baby and the reply often starts with, "The diapers alone ..." During your baby's first year, you can expect to change around 3,000 diapers at a cost between $0.17 and $0.31 a pop for disposables, or about $510 to $930 total.
Cloth diapers from a diaper service are comparable. If you buy and wash your own, you'll save big, although your water and electric bills will go up, you'll need to stock up on detergent and you'll be taking on some extra housework.
Baby food, formula and breastfeeding accessories costs
Breastfeeding has big health and cost-saving benefits, though you'll want to invest in some gear, such as three or four nursing bras (anywhere from $15 to $50 on average). Pumps can range from $25 for manual models to $500 for some double electric models, though many new moms can get them for free or at a discount through their health insurance plans.
For a year's worth of formula, count on spending about $1,200 to $1500 depending on the brand and whether it's powder or ready-made. Some formulations for babies with specific dietary needs can cost quite a bit more.
Bottles run $2 to $12 apiece; many parents stock up on at least 10 to 12 of them, since you might go through a few different models before finding one your baby likes.
Planning to buy jarred baby food once solids get added to the menu? You'll add between $45 and $115 to your monthly grocery budget, depending on the brand you buy and how much your baby eats. Homemade food — either DIY purees or baby-led weaning-style fare — generally costs less. You'll still need to pay for the ingredients, but infant serving sizes are pretty small!
Nursery furniture and décor costs
For the bare-bones set-up — a crib and crib mattress — it's possible to get away with spending as little as $150 total. Spot a second hand crib for significantly less? While the price tag might be tempting, used cribs aren't as safe for your little sleeper, especially if they're more than 10 years old.
The good news? If you already have a bassinet, it will likely be at least a few months before your baby spends any time sleeping in her crib. So it's a cost you can potentially defer until after giving birth.
If you're dying for a chic, super deluxe nursery, you can fork over $4,000 or more. Prices vary, but in general expect to pay around $125 to $350 for a crib, $50 to $150 for a crib mattress, $100 to $200 for a changing table and $200 to $500 for a glider chair.
Child care costs
Day care or nanny costs will eat up the biggest piece of your budget pie. A year of infant day care at a center costs an average of $11,752, according to a 2022 Care.com survey, though the price varies widely based on geographic location.
Depending on where you live, you'll likely pay more for a nanny. A full-time nanny for one infant is around $694 a week, or $36,088 a year, the Care.com survey found.[6]
Clothing and other miscellaneous costs
All those teeny-tiny, utterly adorable outfits add up. And then there's baby gear like a bouncy seat, activity center and diaper pail to consider. The good news: Friends and family will most likely fill your nursery with those kinds of gifts.
To encourage that trend (and ease your baby budget burden), take advantage of baby registries. Then fill in the gaps with garage sale finds and consignment store buys. Since babies grow so fast, it's easy to find good quality, barely used items on the cheap
How to start saving for baby expenses
When you're financially preparing for a baby, don't stress out about tackling every line item at once. There's no need to worry just yet about how you'll pay those college bills, but anything you can start taking stock of now will make money matters down the road easier on your wallet and your sanity.
Your best bet is to start small: Try to sock away enough cash to cover pregnancy costs and living expenses during your maternity leave (since many employers don't offer paid time off).
Finally, think of ways (big and small) to cut corners and generate extra cash for baby expenses. Some almost painless ways to save big when you're preparing for your baby include:
- Cut back on extras, such as expensive restaurant meals and takeout food and drinks.
- Use the old "loose-change-in-a-jar" trick. Just be sure to move the money periodically into a savings account (preferably an interest-bearing one that you've sworn not to dip into).
- Look critically at monthly subscriptions — for home and cell phone services, cable, gym memberships and the like. Not that you need to live without these conveniences, but you may be able to switch to cheaper ones. Often just calling to threaten a switch can snag you a better deal. After all, companies like to keep their customers.
- Reduce credit card debt. You can start by avoiding late fees, paying more than the minimum each month and rolling balances onto low-interest cards.
- Divert some of your current savings. Put them into a designated "baby fund" for your various baby expenses.
- Don't go overboard on buying new baby clothes. Remember, your little one is going to throw up and poop on them, so don't spend a lot of money. Buy just a few basic pieces for day-to-day wear, and purchase new items only for special occasions. Babies don't need shoes in their first year of life, too.
- Double up on baby furniture items. Your baby's dresser top can double as a changing table, for example, and you probably don't need both a baby swing and bouncy chair. (Ditto for the crib and a pack 'n play.) You also don't need to double up on toys, either: Your baby doesn't need both a pink and purple rattle. Stick to one of each type of toy.
- Stash what you can. Even if it's just $10 a month, adding a little into your baby's savings account or college savings plan now will allow it to rack up interest over the years. It's an investment in your child's future.
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