How much does a baby cost?

By Amy E Freeman

You're having a baby — congratulations! As you get ready for the arrival of your little one, you may be eyeing your bank account, wondering how much does a baby cost? While a new family member will add to your budget, the costs don't have to be overwhelming. With a bit of planning, you can be financially ready to welcome your infant.

How much does a baby cost for the first year?

When you look for average baby costs during the first 12 months, you're bound to see a wide range of figures, anywhere from just over $10,000 to an eye-popping $50,000. Of course, how much you end up spending on your child depends in large part on where you live, whether you need childcare and whether you buy all-new items or go secondhand. Your health care costs will also influence how much you end up spending. Budgeting carefully and keeping track of your expenses can help you manage this new financial responsibility, and utilizing a checking account could help you easily access and manage those funds.

A month-by-month breakdown of costs

For the most part, the extra expenses involved in bringing a new person into the world don't have to be paid for all at once. You can space out your purchases so that you're buying what you need when you (and baby) need it. Here's what you can expect a baby to cost during the first 12 months.

Pre-birth through the first few weeks

The steepest cost of having a baby comes right at the beginning: the cost of maternity care and delivery. Prenatal care, childbirth and postpartum care cost an average of $18,865, according to the Peterson-KFF Health System Tracker. Of those costs, the average family pays $2,854 out-of-pocket. The level of care required during pregnancy and delivery also impacts the total cost. For example, a C-section can be around $10,000 more than a vaginal birth. Your insurance coverage will also impact how much you end up paying for maternity and postpartum care.

Just before the baby arrives, you'll need to purchase gear and supplies so you can take them home from the hospital or birthing center safely:

• Car seat: You'll need an infant car seat, which can cost anywhere from under $100 to over $600, according to Consumer Reports. Fortunately, "more expensive" doesn't always mean better. All car seats for sale in the U.S. need to meet the same safety standards, no matter the price tag.
• Clothing: A baby has to wear clothes, and all those little, adorable outfits can add up. One way to keep costs in check is to shop secondhand or consignment stores or to ask friends and families who've already had children to pass on the clothing their kids have outgrown.
• Crib: Similar to a car seat, there's a wide range of prices for baby cribs. You can spend as little as $100 on a crib, or more than $1,000.
• Stroller: You may or may not need a stroller right away, based on your lifestyle and location. If you decide to get one immediately, you don't need to spring for the Rolls Royce of strollers. Several infant models are available for around $100.

Months 1 through 3

As your baby gets bigger, their needs grow, too. During months one through three, you can expect the following costs:

• Diapers: Babies go through diapers quickly. You may find that your little one goes through 10 or so diapers a day, at first. As they get older, they need fewer changes, so the number of daily diapers will go down. Diaper costs vary, and there are ways to save, such as using cloth diapers, joining diaper clubs or hunting down coupons.
• Formula, bottles and breastfeeding: However your baby gets their food, whether through breastfeeding or formula, costs will be involved. For breastfeeding, you'll need to invest in nursing bras, which can cost around $15 to $50, and possibly a pump, which may be covered by your insurer. Formula can cost up to $1,500 for the first year. There's the cost of bottles, which can range from $2 to more than $10 each.
• Doctor visits: Your baby will need to see the doctor regularly during their first few months. How much you have to pay out of pocket for baby's care depends on your health insurance plan. Under the Affordable Care Act, insurers must cover well-baby visits with no out-of-pocket costs. However, if your baby gets sick or needs other medical attention, you may need to pay a co-pay or other out-of-pocket charges. Keeping track of these expenses with a dedicated savings account can help ease any financial stress.
• More clothes and toys: That cute onesie that fit perfectly yesterday may be too small today. Babies grow quickly, so their wardrobe and activities may need regular updates. You may spend anywhere from $10 to $100 per month on baby clothing and toys. Participating in baby clothes and toy swaps, shopping secondhand and asking friends for hand-me-downs will help you save.

Pro tip: Babies grow so quickly, buying new almost never makes sense. However, for safety reasons, you'll want to get a new car seat and crib. Older models may not meet today's safety standards.

Month 3 through 6

Around four or six months of age, milk alone won't cut it for your baby. They'll need to start eating solid foods to get the nutrition they need. Buying jarred or packaged baby food can be convenient but will add around $100 to your monthly food budget. A more cost-effective option is to puree baby-safe foods and offer that to baby, too.

If you have taken parental leave, that usually ends around the three-month mark. The cost of childcare outside the home can range from a few thousand dollars per year to over $15,000 annually. Costs tend to be higher in big cities and for infant care. Consider setting aside funds in a separate savings account for childcare costs to help you manage your budget effectively.

Bonus tip: leverage financial tools, like Citizens Savings Tracker™¹, to help automate your savings so you can manage finances wisely.

Month 6 through 12

As your baby approaches their first year of life, you'll continue to have to refresh their wardrobe as they grow, make sure they're getting enough food and pay for diapers, toys and the like. Now's also the time to start thinking about their future, such as their education. It may seem really early, but if your budget allows, now's a good time to start tucking money away for college.

It’s never too early to open a 529 plan for your child, to help them cover the cost of college. Opening this account allows for you to easily contribute regularly and can be a great way to begin saving for your child’s education.

How much a baby costs, by category

Category by category, here’s the cost of a baby, on average, during their first year of life:

• Baby gear (stroller, car seat, crib, high chair, toys): $400-$3,000. Opt for budget-friendly options without compromising safety.
• Formula, bottles, food: $1,200-$2,400. How much you spend on baby's nutrition depends on their needs, whether a parent can breastfeed and the type of food you buy.
• Medical care: Most preventive services are covered by insurance, but be aware your premium may increase with a new baby.
• Clothes: $250-$600. Plenty of affordable options exist that doesn’t sacrifice cuteness.
• Diapers: $500-$1,000. Consider the long-term costs of both disposable and cloth diapers.
• Childcare: $4,000 to $15,000. How much you pay for childcare depends on the type of care you choose and your location.

Ways to save in year one

• Get health insurance: Health insurance really helps to make medical care more affordable. If you're worried about the cost of premiums, you may qualify for a subsidy that helps to offset your premiums.
• Sign up for a registry: Whether you have a baby shower or not, creating a baby registry can help friends and family know what you need for your little one, helping you spend less out-of-pocket.
• Buy used: A lot of "used" baby gear is practically new, as kids grow out of things so quickly. Just exercise caution when getting baby gear, such as strollers or bouncy seats, used. Check for recalls and expiration dates when buying used products.
• Stick to the basics: Resist trendy, costly baby outfits; your child will be adorable either way.

Know what to expect financially

Welcoming a baby is a wonderful journey, but it can also be overwhelming financially. By preparing for costs ahead of time, you can ease your worries and devote more energy to bonding with your child.

Get a head start on your financial planning! Open a checking and savings account with Citizens to help you manage expenses and save for your child's future.