The Up-Front Costs of Raising a Child

For some, child-rearing expenses can start the moment they buy an at-home pregnancy test at the pharmacy. But to simplify things, let’s begin your baby budget with the birthing experience.

In advance of your due date, it’s important to know what kinds of healthcare costs are associated with prenatal, delivery, and postpartum care. You’ll also want to account for the baby gear you’ll want stockpiled before your little bundle arrives.

Healthcare

Healthcare is one of the heftiest initial costs of having a baby. Your prenatal appointments are critical for monitoring your baby’s development—as well as maternal health—to ensure your pregnancy is proceeding smoothly.

Here’s what you can expect to spend:

• Appointments and ultrasounds – Most parents-to-be make between 10 and 15 prenatal visits during pregnancy. Prenatal care is often covered by insurance, but it’s important to check with your insurance provider if you’re newly pregnant to verify the services covered.

Prenatal exams can range between $90 and $500 per visit. Without insurance, this amounts to around $4,250 (averaging both costs and the number of appointments, and excluding special tests).

• Prenatal vitamins – OBGYNs will tell you that prenatal vitamins are essential for rounding out nutrition during pregnancy—and it’s true. You can expect to pay between $135 and $270 for a 9-month supply.
• Delivery – Childbirth costs can vary widely depending on your birth plan. Some of the most financially decisive factors include the birthing approach (vaginal birth vs. cesarean) and whether complications arise during the delivery process.

Generally speaking, birthing can cost between $5,600 and $18,000. Around 54% of people with employer-sponsored health insurance will be fully covered. If you opt to have your baby outside of a hospital, like at a birthing center, costs tend to be lower.

After your baby arrives, most new parents see their doctors for postpartum appointments at least twice post-delivery. These visits tend to range between $100 and $300 out of pocket.

Approximate minimum total: $8,000

Baby Necessities

Ideally, you’ll start budgeting for and buying baby items and essentials before your due date so that you’re fully armed with wipes, feeding supplies, and the like when your little one arrives.

The most crucial items to look out for include:

• Diapers and wipes – Newborns can use up to 12 diapers per day, costing up to $1000 per year. According to Harvard Public Health, these costs can be crippling to some families. If you’re concerned about the expense, you might consider using reusable diapers (though these can be more time-intensive to maintain). Alongside diapers, wipes are also a necessity; babies go through around 800 per month. To your wallet, this translates to some $23 per month (if not more).
• Feeding supplies – Whether you choose nursing, formula-feeding, or both, the costs of feeding your baby vary widely. Baby Formula can cost up to $250 per month, excluding bottles and supplies. If you breastfeed, you can significantly reduce costs, but you’ll want to consider investing in nursing pads, bottles, pumps, and other supplies and services (like lactation consultants). Yale University estimates nursing can cost up to $11,000 in a year.
• Care and hygiene – From baby lotions to shampoos, infant toiletries tend to cost between $30 and $50 monthly. Diaper cream is also a necessity; these cost around $20 per bottle.
• Clothing – Infants grow at hyperspeed, so you can expect to replace your little one’s onesies and other baby clothes every few months. This tends to cost around $50 per growth spurt (at the lowest).

If you’re looking for ways to save some cash on some baby gear, consider adding a few big-ticket items to your baby registry essentials. Family and friends are a great support system for making sure your baby has all it needs.

Approximate monthly minimum: $410

Home Furnishings

When you have a baby on the way, one of your first priorities may be to make your home safe, hospitable, and cozy for their first few years.

Most parents plan to invest in:

• Bedding – At a minimum, a safe crib and a few bedding options can cost between $200 and $600.
• Nursery furniture – In addition to your crib, it’s helpful to furnish the nursery with a changing table, diaper can, bins or baskets, and furnishings like chairs or play mats. Together, these cost around $350 (at minimum) or up to $2,000.
• Safety devices – Video baby monitors cost between $50 and $200 for an excellent model. Gates and locks to protect doorways and stairwells often come in sets, which you can buy online for between $35 and $200. Getting your home baby-proofed by a professional can cost between a few hundred dollars and $500, though this varies based on location.

Approximate minimum total: $935

Ongoing Monthly Expenses for a Newborn

You’ve delivered your baby, set up your nursery, and maxed out on your collection of onesies for their year of rapid growth—now what?

Ongoing costs for your baby’s first year can depend on your parenting style, your child’s unique needs, and the resources you have at your disposal (e.g. your parents’ generous $0 childcare fee).

Generally speaking, you can divvy the costs of your baby’s first year into two domains.

Healthcare

It’s recommended your baby get pediatric check-ups at least 10 times in their first year, including one just a few days after they’re born.

For parents on a budget, it’s important to revisit your insurance policies to see what visits will be covered after your baby has arrived. Uninsured doctor’s visits can cost up to $200, amounting to approximately $2,400 out of pocket over a year.

Childcare

Approaches to childcare are unique to each family, depending on resources, parenting approaches, and your ability to meet your own needs (you can’t pour from an empty cup!).

Childcare costs fall into a vast range. According to one survey, some families spend up to 24% of their total household income on childcare. Across the country, the national average is about $10,174 annually. Just bear in mind that average costs can vary significantly depending on where you live (where the cost of living is higher, you can expect to pay much more).

If you have an unlimited budget, bringing on full-time support may help free up bandwidth, especially when it’s time to get back to work. Alternatively, budget-conscious families might consider seeking out relatives, friends, or other members of their network who can offer their support at no cost.

Tips for Budgeting for Your Child’s Growth Long-Term

Finances may have you wondering, “how old is too old to have a baby”? The truth is that raising a family can come with some compromises and challenging financial moments along the way, no matter how old the couple might be. Knowing this, it helps to play the long game when it comes to managing your money.

Here are some savvy recommendations that can help you save, budget, and embark on this new chapter with confidence:

Always Pad your Budget

If you’ve ever been on babysitting duty, you know how easy it is to forget a snack pouch here or a bootie there. The same things can happen with your budget: through no fault of your own, it’s the little things that can fall through the cracks and add up in the long run.

With that, aim to budget comprehensively—try to include every possible expense (including the ones you’re unsure you’ll need) and round up whenever possible. From there, it’ll be easier to distinguish your necessities from potential savings, whether it’s thrifting furniture or asking relatives to donate their time.

Set a Budget Editing Schedule

If you’re a brand new parent, you’ll start to get a feel for your baby budget as you go. It can help to add budgeting revision sessions into your calendar so that you have the opportunity each month to catch any blind spots. In time, you’ll have a clearer sense of where your money is going.

Put Aside an Emergency Fund

From medical costs to unexpected repairs, it’s best to make room for the unexpected when you have a little life in tow. With every paycheck, try putting a set sum of your earnings into an emergency fund—it’ll put your mind at ease if any unanticipated costs crop up.

Commit to Investing

Investing your money is one of the smartest strategies for getting the most out of your earnings. Though major expenses like college seem far away now, you’ll thank yourself later if you start saving ahead of time.

If you haven’t already, try looking into 529 college savings plans or consult with an advisory firm to invest your money skillfully.

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