Whether you are expecting or are planning on becoming a parent in the near future, bringing a baby into your life is an experience full of great anticipation and joy. The road to becoming a parent also takes careful planning and smart budgeting. Having a baby changes everything about your day to day functions and expenses.

Your new little bundle of drooly delight could quickly run up some serious baby costs that you may have never considered.

Money management becomes more important than ever when you’ve got a tiny human relying on your every financial move. Before leaving budgeting for a baby up to bouts of trial and error, let us help you create a manageable budget for all your baby’s costs and future expenses.

One Time Costs

Introducing your first baby into the world comes with a hefty slew of one-time expenses. These one-time costs tend to weigh on the heavier side of baby expenses, so it’s important to plan carefully with you and your future newborn in mind. Since these are one-time expenses, we recommend choosing the highest quality products within your budget.

Medical Bills

In a 2016 study directed by Castlight Health, researchers found that the average routine maternity bill ran anywhere between $8,775 and $11,525 depending on the delivery method.

The cost of delivery varied per city. Cities with a higher cost of living generally ranked  higher in cost than those with lower cost of living indexes. Though it is impossible to place an exact price tag on your maternity medical bill, reviewing your health coverage plan can make it easier to predict what finances to prepare for after delivery. Here are a few things to consider when it comes to budgeting for medical bills: 

• Delivery Method

While some women may not have the option to choose, there is plenty to consider when figuring out which delivery method is the best for you. 

According to the Center for Disease Control and Prevention, Vaginal deliveries account for 70% of American births. On average, vaginal births cost less than Cesarean births due to the difference in necessary operating equipment. Cesarean births tend to run a higher bill since there is more involvement in the operating room. 

Not only will there be an obstetrician in the delivery room with you, but a surgeon and anesthesiologist will also aid in making your cesarean delivery as smooth and painless as possible. Naturally, with more servicers comes higher costs. Weigh your options, comfortability, and health history thoroughly before deciding on the best delivery method for you. 

• Prenatal Care

Simply put, prenatal care is the health care you receive when you become pregnant. Regular visits to the doctor ensure the safety and health of your baby, while also tending to your own body’s health and needs. 

With a doctor’s help, you’ll be able to understand your nine month journey in a detailed and comprehensive fashion, and rest assured knowing that you are in good hands during every moment leading up to and following delivery. 

When the big day arrives, you’ll want your team of delivery doctors to know exactly what to expect- and the best way to have it all recorded is through regular prenatal checkups. Most health insurance providers will cover prenatal costs, but those without insurance should plan for upwards of $2000 in prenatal bills. 

• Unexpected Complications

If your prenatal care has been regular and up to date by the time it’s time to bring your baby into the world, you shouldn’t fear any complications with your delivery. However it’s always smart to plan for the unexpected since life just has an unpredictable way of happening. 

Difficult deliveries and long hospital stays can tack on hundreds, even thousands of dollars onto your hospital bill. Luckily most health insurance providers cover these unexpected costs, those without health care or poor insurance policies could be burdened with scary bill totals. 

Baby Gear

Babies are needy little beings, and investing in quality gear can help ensure their safety and give you much deserved peace of mind. There are a number of material items you’ll need in your home to fully integrate your baby into your day-to-day life. 

Many new moms create registries to enlist the help of close friends and family in their quest for making the perfect nursery and baby-friendly house. These 4 items are musts on your to-buy lists.

1. Car Seat - $45-$300

Though you’ll probably spend the majority of your time at home with your baby, there will be plenty of days that you’ll be on the road, taking your newborn to the doctor for check ups, or taking him/ her to meet their new family. For the most secure transportation, a high-quality car seat is a must. According to the CDC, your baby’s risk of dying in a car accident drops by 71% if they are securely strapped into a car seat. 

1. Stroller - $80-$800

Whether you’re constantly on the go or not, having a stroller will make carrying your baby around infinitely easier. Matching the stroller’s capabilities to your lifestyle will be the key factor in your stroller search, which is why the price range is so extravagant. Ask yourself these questions: 

• Where do I plan on using the stroller?
  • Pavement? Unpaved roads? Will you take it out to exercise?
• Will I be expecting another child anytime soon?
  • If yes, consider buying a double stroller to avoid spending unnecessary money
• What key features do I want my stroller to have?
  • A cup holder? Toy storage? A place for your phone and keys?
• How much available storage space is in my car?
• What is my budget for a stroller? 

These questions will help you focus your search and give you a better idea of what price range to expect for your ideal stroller. 

1. Baby Bouncer - $30-$80

Though your little one won’t be able to walk for some time, that doesn’t mean he/she should be restricted to the crib. A baby bouncer lets your baby rest wherever you are. Many bouncers feature toy bars, mobiles, or canopies, all depending on how much you are willing to spend. The most important feature on your bouncer will be the three-point harness. 

1. Baby Swing - $40-$200

New parents can all attest to trying every method in the book to try and keep their baby content. Baby swings have become life-savers for moms and dads across the country. Though they are no substitute for human contact, these units imitate the rhythmic rocking motion of the womb- lulling babies back to a peaceful quiet. As with many baby items, baby swings can come as loaded as you want them to. Some baby swings are electronically powered, some feature various rocking speeds, and some simply come with a secure harness. 

Nursery Necessities

Creating a kingdom for your little prince or princess is one of the most exciting and customizable facets of welcoming a new baby into your family. Since your baby will generally spend the most time in the nursery, decking it out with the essentials should be a generous consideration while budgeting for a baby. 

Every nursery is different and unique to each family, but each nursery should have these 5 necessities: 

1. Crib - $150-$400

Your baby’s crib will become your best friend. Make your baby’s bed cozy and sleepable with a plush mattress, soft sheets, and plenty of cushion. Many parents choose bassinets instead of cribs for baby beds. A bassinet provides the same secure comfort your baby needs with easier movability for you so you can take it to any room hassle-free. For families constantly on the go, consider buying a travel crib. Ultra portable and airport friendly, travel cribs make life on the move easier on parents and wallets. 

1. Baby monitor - $40-$80

Worry less about your baby in another room while you're cooking or working from home with the priceless assistance of a baby monitor. Coming in video, audio, and combined forms, baby monitors let you step away from the nursery without missing a beat. 

1. Changing table - $70-$250

Many parents prefer to have a changing table in their nursery as opposed to a repurposed surface because they are specifically designed to cater to your baby changing needs. Unlike a regular dresser or table, changing tables often feature a walled topper that keeps your baby and changing items secured in place. Changing tables can also double as clothing storage. 

1. Clothing dresser - $60-$500

If you’d rather settle on a clothing dresser to double as a changing table, be sure to have a system secure enough to make sure your newborn is always safe on top of the dresser’s surface. Growing babies will go through plenty of clothes, and due to their tiny size, everything will perfectly fit into a regular sized dresser. 

1. Diaper Pail - $30-$50

It won’t take long to realize how smelling a nursery can become if the changing station is located in the same room. A diaper pail is designed to seal odors away with the closing of the lid. 

Feeding Tools

Unlike their clothing, babies won’t soon grow out of their feeding utensils. Fortunately for your budget, feeding tools generally run lower on the cost scale, and will last you years with proper upkeep and cleaning. These 7 feeding tools should be everything new parents need on any budget.

1. Bottles, sippy cups, and nipples - $10-$20
2. Breast pump - $60-$300

Breast pumps come in manual and electronic forms. Manual pumps tend to run cheaper than electronic pumps.

1. Highchair - $20-$150

Keep in mind that your baby will continue to grow before your eyes. Be sure to select a sturdy and durable highchair.

1. Baby utensils - $5-$25

Babies won’t be able to use the same silverware adults use. Their utensils should be free of BP and phthalate, and dishwasher safe.

1. Baby plates and bowls - $5-$20

Consider buying baby plates and bowls with suction cups at the bottom. Your little one won’t be able to flip his/her bowl of veggies off the highchair table! Less mess, less stress.

1. Bibs - $4-$10
2. Burp clothes- $7-$15

Ongoing Expenses

Now that you’ve got your one-time expenses planned out, budgeting for a baby’s ongoing expenses plays into your monthly income. Babies require plenty of tender love and care, and even more attention. You’ll quickly find that as new parents, you’re spending money nearly every day to support your baby’s growing needs. In order to properly accommodate your bundle of joy, divvy up your spending so you’ll always have finances prepared to spend on the following ongoing costs.

Childcare

Childcare costs will vary depending on your situation at home. If both you and your spouse intend to continue working after your baby’s arrival, the cost of childcare will run a steep bill. If one parent plans on staying home with the newborn, your baby care costs could be chopped in half, or more.

Just like maternity medical bills, childcare costs vary by location. The Care Index reported that Austin, San Francisco, New York City, Los Angeles, and Denver were some of the most expensive cities for child day care. In-center costs for each were well above $10,000 per year while at-home nanny costs soared into the $30,000s annually.

The truth for many parents is that they won’t always be home to tend to their new baby, especially in an effort to keep their baby budget afloat. Those who intend to explore daycare or nanny options for childcare should carefully research every option in their city.

Putting your baby in good, trusted hands is invaluable and a crucial ongoing expense to budget for.

Diapers

There is nothing fun or exciting about adding the cost of diapers to your baby budget, but it is absolutely necessary to calculate it all to understand what your monthly expenses will look like. So how many diapers will you need? Every baby is different, so when yours comes along, keep track of the numbers to properly adjust your spending.

The average newborn baby will poop about 3-4 times a day and pee about 6-8 times a day. That means you’ll end up applying and discarding about 10 diapers per day through your baby’s newborn stage. Plan for at least 320 diapers every month which will run you anywhere between $40-$60 per month.

Feeding

Just like most facets of budgeting for a baby, the cost of baby food varies. Mothers who are able to stay home with their child and breastfeed won’t need to set asides feeding costs unless they plan on storing breast milk. Women who plan on enlisting the help of a breast pump should set aside a one-time expense cost of $200-$400 for a machine and accompanying bottles. Women who are unable to breastfeed or choose to feed their newborn formula can expect to spend $60 per month on formula.

Clothing

Highly dependent on the range of your budget and available disposable income, continuously buying your baby new clothing is not something all parents can or should budget for. Before adhering to the average monthly cost of $60 for baby clothing, consider your climate. How much clothing will your baby be wearing? Consider necessity. How important is it to you that your baby has a full wardrobe? New parents often overspend on baby clothing then feel serious buyers remorse after their baby grows out of that adorable puffer jacket set. Just like adult clothing, buy what you need, and buy what your budget can comfortably handle. 

Doctor’s Visits

Babies are fragile little beings, so every baby budget should account for the unpredictable nature of a baby’s health. Most health insurance policies will cover common baby check-ups and doctors visits. Keeping your newborn up to date with necessary immunizations and evaluations should cost you no more than $100 annually.

Wondering how much you’ll need to swipe each month? We recommend using a baby cost calculator for a fully customizable, changeable, and comprehensive list of baby budgeting costs.

Budgeting & Saving Tips

The daunting sum of postpartum bills can strike fear into the hearts of any new parent without proper planning and budgeting. There are plenty of methods to save a few dollars here and there, but calculating baby costs far in advance can make your ideal baby budget a reality and your bank account fuller.

Steps to Take by Trimester

First Trimester

• Estimate the cost of health bills

Delivering a baby is no small feat and the life-changing experience comes with an equally shocking cost. Most employer-sponsored health plans cover the bulk of delivery and prenatal costs, but in order to perfectly plan for your medical bills, contact your insurer for a solid number.

• Sort out household income

Will one parent stay home while the other works? Will the both of you be working? Budgeting for a baby is highly dependent on your household income, so it is best to have a solid idea of what guaranteed cash flow your family will have.

• Research child care options

Care for your child will be one of the priciest budget factors for a new baby. Do your research and explore all options before settling on the cheapest daycare center. Keep your baby’s wellbeing in mind first, then your wallet.

• Start saving

Since it is still early in the pregnancy stage, you have time to allocate funds to fatten up your savings account. If you’re unable to stash away savings because of life’s costs, try hacking away at any debts you may have accrued pre-pregnancy. Either way, you’ll set yourself up for a better financial future.

Second Trimester

• Check up on your benefits

Did you know that only 16% of companies offer paid maternity leave? If your employer falls among that 16% you’re in luck. 84% of new mothers are not given paid maternity leave and will have to rely on their spouse or their savings for as short as the first month of their pregnancy. Double check with your employer to see if you qualify for any maternity leave benefits.

• Start your registry

You’ve only god one trimester to go before welcoming your baby into the world. To cut your personal baby costs, create a registry containing all the items you may want and need when your baby is born. Amazon, Babylist, Walmart, and Buy Buy Baby all offer user-friendly baby registries. Your friends and family will be happy to help provide for your newest bundle of joy, and you’ll appreciate all the money you’ll save.

Third Trimester

• Set up your nursery

Furnishing your nursery will take a bit of patience and careful understanding of what your baby needs. To avoid overspending without sacrificing quality, read reviews about the products before making the purchase. Cutting corners with quality will leave you with easily breakable items; don’t be afraid to splurge when you need to splurge.

• Keep your hospital stay to a minimum

Though we would like to believe that hospitals are safe-havens and have mercy on our wallets, bills can pile up the longer and more fanciful your hospital stay becomes. Opting out of a private room for post-op could save you thousands. Keeping the tv turned off could save you $8 a day. Be wary of the many hidden fees your hospital may tack on to your stay.

• Keep good budgeting habits

Budgeting for a baby takes a lot of hard work and planning, but you should do your best to maintain a reasonable budget even after your baby is born. Collecting and using coupons could save you hundreds a month on various baby costs. Buy diapers in bulk to get more for your dollar. Take friends and family members up on their offer for upcycled toys. Many parents have gently used baby toys that could come to you at no cost. Skip as many unnecessary costs as you can and keep more money in your wallet.

Financial Tools

You’ve figured out how you’ll welcome your newborn into the world and into your home, and figured out the best way to do it with your savings and income. The next step in raising a child is preparing for the future. As new parents, your child’s wellbeing and future standard of living becomes of the utmost importance. Consider using these financial tools to begin building your child’s future today.

College Savings Tools

The cost of college tuition seems to get higher and higher with every year. Don’t wait until your baby turns into a teenager to start putting money away into a college fund. There are several college education investment tools that allow your child a financial safety net when it’s time to apply to college. Start growing their savings account today with these recommended tools

• The 529 Plan
• Coverdell Education Savings Account
• UGMA/UTMA Account

Life Insurance

Though it is scary to plan for worst-case scenarios, it’s always better to have a plan in place if something were to happen. Enrolling in life insurance will assure that your child will have access to financial resources if you and/or your spouse were to die suddenly. To find the best plan for you, talk to and insurance agent or your employer about possible insurance options.

Health Insurance

Making sure you and your child are covered by decent health insurance can make accidents and illnesses far less worrisome. Without it, one serious hospital visit could rip thousands of dollars from your savings. Thoroughly research your healthcare options before settling on an inexpensive and low-coverage plan. If you are already insured, you can add your child to your policy for an increased premium. Depending on your location, your child may be able to stay on your policy until they are 26 years old.

Final Notes

Giving birth to a child is an exciting and life-transforming experience many parents get to share each and every day. Budgeting for a baby requires many moving parts, but with diligent research and thoughtful consideration it can be a smooth and calculated process. Between your one-time costs and ongoing baby expenses, the bills can easily pile up, especially in the first year of raising a child. Protect yourself against overspending and unnecessary stress by making a budget that caters to you. Enjoy your baby’s childhood and your new parenthood knowing you’ve set your family up for future success.