Your life will change when you have a baby, and that’s certainly true when it comes to your finances. Learn how much a baby costs in the first year. From hospital bills to daily essentials, explore the expenses of a baby’s first year and tips to budget wisely.

Key points: Cost of having a newborn

  • The estimated health costs associated with pregnancy, childbirth, and post-partum care are $18,865, with an out-of-pocket payment total of $2,854 for those with large employer private health plans.1
  • In Washington state, the average full-time cost per month of infant care at a center is $1,698 or $20,370 if annualized.2
  • Putting it all together, one estimate suggests the cost of a newborn in the first year is $20,000 on the low end, all the way up to $50,000 on the high end.3 Many of the other costs (e.g., stroller, baby swings, highchair) of a baby in the first year can vary depending on whether the family chooses high-end purchases or more budget-friendly solutions.

How much should I budget for a newborn?

If this is your first child, a few things will become important. One is batteries (you will spend more time replacing batteries than the kids play with the toys). Others are diapers, formula, and wipes.

Let’s create a newborn budget. Analyzing the average cost of a newborn, as suggested earlier, one-time expenses (think strollers, baby carriers, and dressers) will range from $4,250 to $24,550. The variation is largely driven by whether your health insurance will cover pregnancy, childbirth, and postpartum care. If you wanted to pay cash for all of this and start saving one year before giving birth, that’d mean you want to save $354 per month on the low end ($4,250 ÷ 12) all the way up to $2,045 per month ($24,550 ÷ 12). These figures estimate what you need to save to cover one-time costs.

Recurring monthly costs (e.g., formula, diapers, clothing, childcare) will need to be budgeted for each month. Without childcare included, you need $155 to $350 per month. If you add the estimated $1,698 for childcare, the monthly costs jump to $1,853, up to $2,048.

Where you live will influence these costs as well. For example, monthly childcare costs for an infant in Mississippi are as low as $572 per month, whereas in Washington, D.C., they come in at $2,363.

Expense before birth

Here’s an extensive list of infant expenses to make before birth: bassinet, crib, dresser, changing table, rocking chair, baby chair, car seat, stroller, diaper bag and accessories, baby carrier, baby bath, diaper pail, bottles, and electronic nursing pump. Given these expenses, the average cost of a newborn can vary from $1,170 to $4,550.

Another one-time cost to consider is any income you may lose during parental leave. In Washington state, Paid Family and Medical Leave (PFML) allows up to 90% of their weekly average wage, capped at $1,542.4

Birth and Healthcare Costs

Looking more deeply at the healthcare costs of a newborn, the average cost of a newborn (pregnancy, childbirth, and post-partum care) is $18,865, but if you have health insurance, you may pay $2,854 out-of-pocket.

Costs can vary depending on vaginal births or a cesarean section. The average out-of-pocket cost for vaginal births is $2,655, and a cesarean section is $3,214.5 To further hone in on what your birth may cost, learn about your healthcare plan’s deductible, co-pay, coinsurance, and out-of-pocket maximum.

Newborn Expenses

Examples of Recurring Costs

How much does a newborn cost per month? Here’s a list of common recurring costs:

  • Diapers and wipes
  • Baby soaps, lotions, creams
  • Replacement pumps and storage bags
  • Formula and baby food
  • Clothing

An estimated newborn cost per month is $155 to $350 per month.

Examples of Occasional Costs

Periodic expenses are occasional costs that don’t occur every month but aren’t one-time expenses either. Examples include:

  • Toys
  • Birthdays (for both your child and their friend)
  • Haircuts
  • Co-pays for wellness visits and sickness
  • Over-the-counter medicine
  • Babysitter

These costs are highly variable, but it’s safe to assume you will, on average, spend $50-$250 a month on these hard-to-predict occasional costs.

What are the Highest Infant Expenses to Budget for When Having a Baby?

When considering the average cost of a newborn, big-ticket items might be the most likely source of stress. The largest-ticket items are maternity healthcare costs and childcare. Research what your healthcare insurance may cover and how your family will approach childcare to avoid big surprises.

The following are cost estimates found online3:

  • Travel (car seat, baby carrier, stroller): $300-$2,000
  • Diapers and changing supplies
    • One-time costs: $50-$200
    • Recurring costs: $60-$70 a month
  • Baby clothing
    • $15-$50 a month
  • Baby toys and entertainment: $10-$100 per month
  • Baby food and nursing needs
    • One-time costs: $250-$700
    • Recurring costs: $60-$100 per month
  • Baby health and hygiene
    • One-time costs $60-$180
    • Recurring costs: $10-$30 per month
  • Nursery room furnishing: $480-$1,770

Unexpected Infant Expenses That Could Affect Your Budget

Be aware that unexpected infant expenses also affect the average cost of a newborn for the first year. You may need to trade in your compact car for something roomier. The same goes for where you live, whether an apartment or a home you own. An additional bedroom or bathroom can become very enticing. Vacations now may require a bigger place and higher travel costs. Finally, think about utilities. Another human will add demand. You will be doing much more laundry!

How to Avoid Debt When Having a Baby

  • First, save money now! If you can’t save money now, it will be doubly hard with a baby.
  • Tighten the belt by reviewing your expenses thoroughly while dedicating money to a savings account for as many items listed in this article as possible. This process will prevent debt from piling up.
  • Do your research and shop smart. As you now know, you will be making a lot of purchases. Research now! Also, consider second-hand items whenever possible.
  • Try to avoid overspending based on excitement. What’s essential for your baby is your attention and presence, which is harder to do if you are thinking about paying off a $2,000 stroller.
  • If you have debt now, particularly high-interest debt like personal loans and credit cards, get to work paying them down. Read about debt repayment strategies: “Paying Down Debt: Avalanche vs. Snowball”
  • Get one-on-one support and create strategies to minimize debt by talking to a financial counselor.

References

  1. Peterson-Kff Health System Tracker. “Health Costs associated with pregnancy, childbirth, and postpartum care.” Accessed May 25, 2025.
  2. Tootris. “Cost of Child Care in Washington: A Breakdown for 2025.” Accessed May, 2025.
  3. Thrivent. “How much does a baby cost in the first year?” Accessed May, 2025.
  4. Washington Paid Family & Medical Leave. “How paid leave works.” Accessed May 2025.
  5. UWHealth. “How much does it really cost to have a baby?” Accessed May, 2025.