How Much Does A Newborn Cost Per Month

What Is The Average Cost Of A Baby

How Much Does it Costs to Have a Baby in the Hospital | My Experience

Preparing to meet your new baby is an exciting time and you will likely have a lot on your mindfrom birth, to feeding, to setting up your babys nursery.

Among the top things parents often overlook is how much raising a child will cost them and how to make sure that they have enough money and resources to care for their child.

How Much Does A Child’s Education Cost

Like daycare, early childhood education can be expensive. Licensed center-based infant child care has a national monthly average cost of $1,324, according to the Center for American Progress. Then, if you decide to send your child to a private school, you can expect to pay anywhere from a national average of $11,779 per year up to over $26,000, depending on your home state, county or town.

Even if you choose to send your child to public school, which is free, there are other costs to consider, like clothing, lunch and school supplies. A survey by the KPMG found that the average parent’s spending per student for the 2021 back-to-school season was expected to be much as $270, compared to approximately $250 in 2020..

These costs aside, whether you choose public or private school, you may want to think of your child’s education as an investment that can set them up for future success.

What Will You Be Spending Money On

Everyone takes different approaches when it comes to buying for their baby. Some people want to go all out and completely revamp their childs nursery or other living space. Some want to go more minimalistic.

Thankfully, when it comes down to it, babies dont really care how much stuff they get or how cute it looks, and they dont honestly need that much.

Although babies need constant carewhich you will have to finance if you are not staying home with them or having family watch them free of chargethey actually have very minimal needs in terms of concrete purchases.

They need food to eat, a safe place to sleep, a safe car seat, a safe place to be put down every now and then, clothingand, of course, diapers. Lots of diapers.

Lets talk about what you really need to buy for your baby, and what is mostly optional.

Common Purchases For Your New Baby
One-Time Purchases

Read Also: What’s The Best Formula For Newborns

Paying For Infant And Toddler Child Care

Limited public funding forces families to shoulder the majority of the burden of paying for child care.40 The high cost of infant and toddler care comes at a time when families can least afford it.41 New parents are unlikely to have achieved their full earning potential by the time they have children, and they face new expenses that come with having a baby.42 It is unsurprising, then, that of all age groups, children less than 3 years old are the most likely to live in poverty: 44 percent of children less than 3 years old live in low-income households, compared with 29 percent of working-age adults.43

On average, parents would need to spend 18 percent of their annual income just to purchase infant child care that meets licensing standards.

The true cost of quality infant and toddler child care is unaffordable for most families

While the U.S. Department of Health and Human Services defines child care as being affordable when it does not exceed 7 percent of family income,44 data from CAPs models find that if market rates reflected the real cost of providing that care, families in every state would pay a much higher share of their income to access infant and toddler care that meets minimum state licensing standards.The true cost of quality infant and toddler child care is unaffordable for most families

Child care subsidies are insufficient to cover the true cost of infant and toddler child care

How To Start Saving For Baby Expenses

How Much Does A Newborn Baby Cost Per Month

When you’re financially preparing for a baby, don’t stress out about tackling every line item at once. There’s no need to worry just yet about how you’ll pay those college bills, but anything you can start taking stock of now will make money matters down the road easier on your wallet and your sanity.

Your best bet is to start small: Try to sock away enough cash to cover pregnancy costs and living expenses during your maternity leave .

Finally, think of ways to cut corners and generate extra cash for baby expenses. Some almost painless ways to save big when you’re preparing for your baby include:

From the What to Expect editorial team and Heidi Murkoff, author of What to Expect When You’re Expecting. What to Expect follows strict reporting guidelines and uses only credible sources, such as peer-reviewed studies, academic research institutions and highly respected health organizations. Learn how we keep our content accurate and up-to-date by reading our medical review and editorial policy.

Also Check: How To Prevent Jaundice In Newborns

Extra Doctor Trips: $70 $60 + $10 For A Medication Or Two

If this is your first child, your health insurance cost is going to go up. Your actual insurance plan will increase to a family plan. I cant put a dollar value on this because every plan is different.

Pro Tip: If you and your spouse are on separate plans, now may be a good time to get the entire family on one plan. I am still amazed by how many are on separate plans, and I think the biggest factor is that it is a lot to comprehend when making a change with health insurance plans. The main reason to be on one plan as a family is one family deductible/out-of-pocket maximum.

How Much Does A Newborn Cost Per Month

During the first year of your babys life, youll likely spend thousands of dollars on one-time costs as well as ongoing expenses. Youll have to consider the costs of pregnancy, delivery, your babys food, transportation, room furniture, toys, childcare, and so many other things. This article will help you estimate actual delivery costs, cost of formula and solid food, diapers, and everything to consider when trying to save money.

Read Also: How Long A Newborn Sleep

Will We Keep Paying For Disposable Diapers

Yes, but we dont plan to use them exclusively.

Instead, moving forward we are going to use a hybrid approach to diapering which incorporates both cloth and disposable diapers.

Why not abandon disposable altogether?

We have learned that disposable diapers have utility in 4 core areas:

  • If you plan to send your child to daycare, daycare facilities use disposable diapers almost exclusively
  • When traveling disposable diapers are a much better option to have on hand
  • At night, when most new parents are sleep deprived, using disposable diapers can be far more convenient, and time efficient
  • The indicators built into disposable diapers are a big help for busy new parents and can actually save them from mistakenly changing a diaper when its still clean
  • How To Cut Corners And Plan Smartly

    Earn $10,000 Per Month in Passive Income (How Much Do You Need Invested?)

    As you plan for the financial cost of raising your baby, there are some things you can do to save money and prepare for your new financial responsibilities:

    • Create a budget with your new estimated expenses try sticking to it in the months leading up to your babys arrival so you can see where you might need to cut costs
    • Ask your family and friends for hand-me-down clothing, as well as for tips about where to find the best deals on new baby gear
    • Contact the companies to see if there are ways to decrease your monthly billsyoud be surprised at the different plans they offer if you take the time to ask
    • Consider your current entertainment subscriptionssome of them may not be necessary
    • Consider starting a savings account to help fund your babys first year as you figure out the logistics of childcare and time management
    • Investing in a financial planner might be helpful as you consider ways to manage and invest your money toward the future

    Don’t Miss: How Long Are Babies In Newborn Diapers

    Nursery And Home Setup

    Preparing for a baby involves setting up a space and getting all the things youll need. Heres a checklist of some items babies may need, with their price estimates:

    Item
    Pacifier $3 to $15

    Getting everything set up can easily cost a couple thousand dollars, depending on how you shop. Keep in mind that not all of these items are necessary. For example, an electric breast pump can be substituted for a much more affordable manual one. You may not even need a breast pump if you are using formula.

    You might find secondhand items at lower prices. You may also get many of these items for free from friends or family who no longer need them, or you could receive them as gifts.

    If you have a larger budget, you can find higher-end, designer items at higher prices. Many luxury baby items are well out of the average ranges stated above.

    What Is The Most Economical Way To Purchase Baby Wipes

    If youre only looking for the cheapest baby wipes, go for a store brand or, at the absolute least, a major brand with the highest bulk wipe count.

    The more you buy, the less it costs per wipe, just like everything else.

    Lets look at how much Huggies Natural Care wipes will cost in different circumstances on Amazon at the time of purchase.

    Baby wipe tub with 64 counts roughly $0.10 per wipe.

    When you buy wipes in a tub, the manufacturers enclose the wipes in a hard plastic case or shell.

    These are useful when you require a constant supply of wipes or want them to look a little nicer .

    Unfortunately, this choice includes the case, so its usually not good to make this your standard purchase once youve gotten all of the tubs you desire, especially if you throw them away.

    Furthermore, you can only buy a number of these at a time, obviating the need for bulk purchases.

    Also Check: How To Apply For Medicaid For Newborn

    Diapers: Cloth Or Disposable

    Cloth or disposable, the perpetual question. I grew up on cloth diapers and I dont even think there were cloth diapers laundering services at the time. Talk about dedicated parents!

    Squawkfox has a great post on whether cloth diapers are worth it. If you buy a set of cloth diapers and launder them yourself, yes it is as you can also resell the cloth diapers for anywhere from 50-70% of their value, where the total cost is about $550 until your child is potty trained. The plus side is youll be sparing the environment on thousands of plastic diapers that take more than a lifetime to decompose. For disposable diapers, the approximate cost, according to Squawkfox, is $2350.

    However, the caveat is laundering them yourself.

    If you choose a diaper laundering service , the cost per week is about $20+taxes but also includes diapers. The total cost for this is about $2400, which makes this option the most expensive, but perhaps the least guilt-inducing.

    However, keep in mind this is for 30 months, and thats more than two years of cost, spread out over two and a half years, its not that bad.

    BUDGET: $550-$1200 for diapers depending on what option you go with

    How Much Do Diapers And Wipes Cost Per Year

    How Much Do Baby Clothes Cost Per Month

    According to the American Academy of Pediatrics, disposable diapers can cost up to $936 in the first year .

    This cost can be difficult for families to bear, leading to habits such as fewer diaper changes, diaper rashes, and other health issues.

    Every person might not be ready to spend so much on wipes alone therefore, they would go for different options or reduce their usage.

    Mo Mulla is a work from home dad who enjoys reading and listening to music, He loves being a dad and husband to a growing family. He also loves writing about his passions and hopes to change the world, 1 blog post at a time!

    A safe space for women to meet and find support!

    The Mothers Community is a place to connect with women who are at a similar stages in lifefrom fertility, pregnancy and motherhood through to menopause.

    Join a community who are there to listen, share information and offer valuable advice. Join Community

    Take matters into your own hands! Expert advice for Fertility, Pregnancy and Motherhood! Discover More Here

    Also Check: How To Potty Train A Newborn

    Cost Of Formula Per Month

    Cost: $400 to $800 is the average monthly cost for powdered formula for babies who are formula-fed exclusively. The cost will be lower if you supplement with breast milk and higher if you give your baby more expensive brands or ready-to-feed formula. Monthly formula costs could spike if your baby needs a special hypoallergenic formula or if there’s a formula recall or shortage.

    As your child gets older, formula costs will lessen as the amount of formula they’ll need daily decreases, especially once you start introducing solid foods around six months of age. By 12 months old, your pediatrician will likely recommend that you switch your baby from formula to regular cow’s milk, assuming your baby doesn’t have any allergies or health concerns.

    Ways to save: Breastfeed if you can. If you’re not breastfeeding or are supplementing, use powdered formula, which costs less than ready-to-use or liquid concentrate. Though this may be difficult now due to the nationwide formula shortage, consider purchasing store brand or generic formulas, which meet the same federal nutrient requirements as brand-name formulas but are less expensive.

    Giving Birth At A Birth Center

    It will cost anywhere between $3,000 to $4,000. As with home births, there are insurance companies that will cover them and those that wont. Its important to check with them first .

    Looking at the above figures, it is easy to see how expensive a C-section can be, especially if you dont have insurance. Even in states where hospital costs are low, forking out over $12,000 is no mean feat. Plus, if any complications arise, itll be even more.

    Although home births are the cheapest option, theyre not for everyone, making birth centers a viable third option. Compared to hospitals, theyre more welcoming and less restrictive. You can even have your family members present during the birthing process.

    If you are fortunate to have good health insurance the bulk of the medical costs of birth will be covered for you, or be a small fee.

    Editor’s Note:

    You May Like: What Is Newborn Stem Cell Banking

    If One Parent Stays At Home

    If one of you becomes a stay-at-home parent, there are important budget changes to considerthe most obvious is reduced family income. Despite the high cost of child care, the cost of one partner leaving an income behind to commit to full-time parenting can be much higher in terms of lost income, benefits, and investment.

    This is compounded by diminished earning potential if that partner decides to resume their career. The decision to stay home can be personal or financialat lower income levels, even government programs cannot balance the high costs in some regions. If it is for personal reasons, however, a couple can at least try the one-income budget prior to the birth to get an idea for it while building an emergency fund with the second income at the same time.

    What’s The Cost Of Transportation Housing

    How much does it cost to raise a child in China?

    A middle-income family with two kids can expect to spend an average of $162 a month per child on transportation and an average of $314 a month per child on housing-related expenses, as reported by the PlutusTM Foundation. A USDA report on food costs found that it costs anywhere from $99 to $183 a month on average to feed a one-year-old child, depending on a family’s food budget.

    But these numbers are national averages. If you live in an area with a high cost of living, it might cost even more. You may want to sit down with your partner to look at your household expenses now and using these averages what they could be in the future. That will help give you a better idea of what you’ll pay each month to run your household and how to structure your family’s budget.

    Recommended Reading: Should Newborns Sleep Through The Night

    Quick Tips For Successful Budgeting Your Baby Costs In The First Year

    So now that we’ve covered “how much does having a baby cost” you can start working on your budget. You may have had many false starts on your budgeting journey in the past, and that’s totally ok!

    However, when a baby is in the picture, you’ll want to try your best to get on top of budgeting. This is so you can keep working towards your financial goals.

    The best way to start is by going back to the basics.

    How May Diapers Should You Stock Up On

    Generally you want to buy diapers in bulk to save money, but you need to factor in that your baby will grow so you dont want to buy too many of one size. As your baby grows you should find that they stay longer in each diaper size. For newborn diapers, you wont need that many, but you will need more of size 1, even more of size 2 etc.

    Look at the table above to see how many diapers you need of each size

    Also Check: How To Get Rid Of Newborn Gas

    Related Posts

    Popular Articles