One whole paycheck...each month...for an entire year.
That’s how much I would need to save up for the baby I was planning to have, according to Google.
When I searched "how much do babies cost," Google estimated about $16,000.
$16,000!
That was a LOT of money, so I decided to be extra careful with my spending and ended up with a far smaller tab.
My final figure? Just about $6,100.
In this post, you will find:
- Our first-year baby expenses, so you can see a real-life example of how much it actually costs to raise a newborn
- Realistic budget ranges to help you plan for your baby
- My best tips for how to avoid overspending when it comes to baby
Disclosure: Opinions expressed are our own. If you buy something through any of our affiliate links on this page, we may earn a commission at no extra cost to you. Thanks for supporting our site.
Estimated baby expenses (by category)
Below is a summary of the most common baby-related expenses you’ll deal with, sorted by category. For each section, I’ve included the following:
- USDA’s cost estimate, according to their cost of raising a child calculator
- The realistic cost estimate range that I think most people can reasonably expect to spend
- The amount I actually spent
- A list of the expenses that would fall into each category
An double asterisk(**) is shown next to the biggest cost-eater per section that I think first-time parents should keep an eye on when budgeting for a baby.
A caveat, everyone's circumstances are different, so don’t take these numbers as set in stone as they reflect my personal experience only.
Our intention is to share a real-life example to first-time parents to help them come up with some type of plan to prepare financially for a baby with at least some information, rather than going in totally blind.
As such, you may spend less or end up paying more based on your individual situation.
Medical
USDA estimate: $1500
Realistic estimate: $1500-$4000
My actual spend: $3130.90
Expenses include:
- Increased healthcare premium
- Out-of-pocket hospital bill**
- Out-of-pocket prenatal and postnatal check-ups for mom and baby
- Medications
- Vitamins/supplements
- Medical supplies
My hospital bill was higher due to complications I had during delivery. This required extra services as well as an extended hospital stay to monitor the status of me and baby.
It’s pretty hard to say what will happen when you give birth, and complications are a lot more common than you’d think.
Just try your best to stay healthy so you can maximize your chances of having a smooth and complication-free delivery.
How to save big on medical expenses: First and foremost, get insurance. According to my labor and delivery bill breakdown, the cost before insurance was over $13,000!
If you already have coverage, then look into health savings accounts or flex spending accounts that allow you to put a portion of your paycheck before taxes into a separate account that can only be used for health-related costs.
This could easily save you hundreds or even thousands.
Housing
USDA estimate: $4700
Realistic estimate: $500-$3500
My actual spend: $292 or $892 (see note below)
Expenses include:
- Increased mortgage/rent/property tax if upgrading to a larger space
- Utilities
- Furnishings for nursery**
- Crib
- Rugs/flooring
I didn’t compare my utilities prior to and after baby was born. The first number for the total I spent doesn’t take utilities into account, but the second number adjusts for an estimated $50 more month.
How to save big on housing expenses: Don’t upgrade more than you have to. Because we stayed in the same home and didn’t even create a separate nursery, our cost didn’t go up by much at all.
Since nursery furniture can get costly, make sure you’re making the most of your baby registry by adding it there. Even if it’s too expensive for one person to get, a group of people might chip in together to buy the item for you.
Clothing
USDA estimate: $1000
Realistic estimate: $100-$500
My actual spend: $142.94
Expenses include:
- Clothing
- Accessories
- Diapers**
- Footwear
Ah, the classic question of which diapering system saves you more money. Read the tactics we used to get diapers for free or cheap.
How to save big on clothing: Let friends and family who have older kids know that you’re expecting. Many of them will be glad to pass off old clothes to you.
If you don’t have such a network, there are other ways to get free baby stuff.
Or, make Craigslist and Facebook Marketplace your friend. There are so many great deals on loads of used clothing for dirt cheap.
Feeding
USDA estimate: $2000
Realistic estimate: $200-$800
My actual spend: $208.63
Expenses include:
- Formula**
- Breastfeeding supplies
- Bottles
- Solid foods
- Feeding cleaning supplies
- Bibs
- Dining out
The idea of feeding formula honestly didn’t cross my mind at all because I was so focused on learning how to breastfeed.
But then baby was born and alas, I had low milk supply, baby had trouble latching, and formula became a very important part of our feeding routine.
How to save big on feeding: Be prepared for the possibility of needing formula, which I turned to when my son wasn’t taking to breastfeeding and my body wasn’t producing enough breast milk supply.
Sign up for formula programs to get free samples and coupons, which will help bring your formula cost down significantly.
I signed up for both Similac and Enfamil. Each were pretty generous, and softened the blow to my bank account.
Childcare
USDA estimate: $3600
Realistic estimate: $0-$10,000
My actual spend: $25
Expenses include:
- Daycare**
- Babysitting**
- Special classes
- Education fees
I technically included a $25 application fee for preschool when my son turns 4 since you need to get these things in ASAP to reserve a space for your child.
We are fortunate that the grandparents on both sides are willing and able to look after our son so that we don’t have to pay for childcare.
Prices we were looking at for daycare were between $400-800 a month.
How to save big on childcare: This is less a money tip than overall healthy life balance tip. Really sit down and discuss options for childcare with your partner.
Not only should you take the financial aspect into consideration, but also the change in lifestyle, impacts on social life and your relationship as a couple, etc.
Get family involved if you and they are willing, save up vacation so you can take a day off each week to relieve the babysitter, or find other tips to save money for childcare.
Transportation
USDA estimate: $2300
Realistic estimate: $500+
My actual spend: $500 (see note)
Expenses include:
- Car payments
- Gas
- Car maintenance
- Car insurance
- Parking
- Public transportation
- Air transportation**
I didn’t track how many extra car trips I made because of the baby. For the most part, the only new travel we did was to more doctor’s appointments.
Most of the other times were to run errands we would have normally gone on even before the baby.
We also didn’t upgrade our car or take any flights in that first year.
How to save big on transportation: Unless you’re getting a second car, upgrading the size of your car, or flying in a plane to visit anyone, it's relatively easy to keep transportation costs down.
If you do fly, check if your little one can travel for free. Most companies won't charge for baby, although some international airlines may only offer a reduced ticket price.
Miscellaneous
USDA estimate: $1000
Realistic estimate: $500-$1500
My actual spend: $1660.95
Expenses include:
- Bathing supplies
- Entertainment
- Reading materials
- Baby gear**
- Toys
- Gifts
About a quarter of our spending here was for actual baby supplies, including some baby essentials and other extras that we included on our favorite baby registries.
The rest was on gifts for the friends and family who were so generous and loving to our son.
How to save big on miscellaneous expenses: Few, if any, entertainment and learning tools need to be purchased brand new. Acquire hand-me-downs from family and friends through word-of-mouth, or purchase secondhand.
Also, take care of those who take care of your kid. Knowing that you have those who are happy for you and want the best for your family is priceless.
Express your gratitude because being careful with your finances is not just about the money spent. It includes being grateful for the positive relationships and support networks that you have in your life too.
My actual expenses in the first year [table]
The table below includes an itemized expense log of what I spent in year 1 for my son. You can also find a visual list of my best baby finds* here.
| Item | Quantity | Cost |
| HOSPITAL | ||
| Hospital, Mama | 3-day stay | $1607.85 |
| Labor & Delivery, Mama | $456.45 | |
| Delivery doctor, Mama | $422.05 | |
| Delivery doctor, Baby | $40.05 | |
| Medications, Mama | $26.75 | |
| Total for HOSPITAL | $2553.15 | |
| OTHER MEDICAL | ||
| Increased health insurance premium | Family | $422.40 |
| Witch hazel pads, Mama | 1 tin | $4.39 |
| Mastitis visit, Mama | 1 visit | $10.00 |
| Mastitis medication, Mama | 1 bottle | $15.00 |
| Hospital parking | 8 days | $24.00 |
| Well baby check up, Baby | Taxes only | $24.36 |
| Tongue tie surgery, Baby | 1 surgery | $40.00 |
| Vitamin drops, Baby | 5 bottles | $37.60 |
| Total for OTHER MEDICAL | $577.75 | |
| HOUSING/NURSERY | ||
| Full crib set | 1 | $45.00 |
| Pack n play playard | 1 | $40.00 |
| Foam mat | 1 | $24.82 |
| Rug | 8 x 10 ft | $94.23 |
| Folding mattress | 1 | $93.19 |
| Utilities (estimated increase) | $600.00 | |
| Total for HOUSING/NURSERY | $892.24 | |
| CLOTHING | ||
| Swaddling blanket | 1 | $3.34 |
| Shirt | 1 | $0.77 |
| Sweatshirts | 3 | $16.73 |
| Baby hangers | Set of 10 | $1.19 |
| Total for CLOTHING | $21.96 | |
| NURSING/FEEDING | ||
| Breast pump rental | 5 months | $65.55 |
| Organic nipple cream | 3 2oz jars | $12.95 |
| Fenugreek | 5 bottles | $32.97 |
| Formula | 11 bottles | $65.21 |
| Bottle brush | 2 | $4.33 |
| Bibs | 3 | $1.50 |
| Baby food | 6 pouches | $6.28 |
| Prune juice | 2 64oz bottles | $19.84 |
| Total for NURSING/FEEDING | $208.63 | |
| BATHING/CHANGING | ||
| Cloth diapers | 20 | $47.98 |
| Cloth diaper inserts | 40 | $8.00 |
| Disposable diapers | 2 | $62.00 |
| Baby wash | 5 | $25.19 |
| Laundry basket | 1 | $1.16 |
| Antifungal cream | 1 | $15.00 |
| Rubber duckies | 2 | $2.32 |
| Total for BATHING/CHANGING | $161.65 | |
| CHILDCARE | ||
| Preschool application fee | 1 | $25.00 |
| Total for CHILDCARE | $25.00 | |
| MISCELLANEOUS | ||
| Newborn announcements | 100 | $27.37 |
| Car shades | 3 | $6.99 |
| Stroller | 1 | $94.28 |
| Lamaze toy | 1 | $186.03 |
| Tower blocks | 1 | $11.99 |
| Jittery toy | 1 | $11.20 |
| Shopping cart toy | 1 | $12.24 |
| Socket protectors | 25 | $2.09 |
| Gas (estimated increase) | $500.00 | |
| Birth certificates | 2 | $16.50 |
| Thank you gifts | Various | $1244.41 |
| Total for MISCELLANEOUS | $2117.78 | |
| GRAND TOTAL FOR YEAR ONE | $6712.77 |
Common questions about costs of raising a baby
So let’s summarize the estimated budget ranges for each category we discussed above:
Medical: $1500-4000
Housing: $500-$3500
Clothing: $100-$500
Feeding: $200-$800
Childcare: $0-$10,000
Transportation: $500+
Miscellaneous: $500-$1500
And the median of that range would be about $8750.00.
I’d consider this a realistic cost of raising a baby, which would cover the basics while leaving a cushion for some unexpected expenses and a few splurges.
If we took that median figure of $8750.00 and divide it 12 months, that comes out to about $750.00 per month on average.
But remember, your costs will be highest at the beginning since you'll need to have some things in place prior to baby’s arrival, plus that big fat hospital bill comes shortly after baby arrives home.
Aim to have at least $5,000 saved up by the time baby arrives, although the more you have, of course, the better shape you’ll be in.
Conclusion
How much does it cost to raise a baby? As discussed in this article, the short answer would be about $8,750 in the first year. Since the bulk of it will be spent at the beginning, having about $5,000 saved up before baby arrives would be a great start.
But if you want to keep the cost of raising a child low, stay conservative with your spending with the helpful tips above and keep your bank account as healthy as your little one during that first year.
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