In the United States alone, about 4 million babies are born every year. And though you can’t put a price to the joy of becoming a parent and starting a family, raising a baby can come with a hefty cost. In fact, a 2010 United States Department of Agriculture (USDA) report claimed that average middle-income families will have estimated spendings of $12,000 in the first year of having a baby! Wonder where all the expenses are coming from? Here’s a breakdown of how much does a baby cost per month!
STORY TIME
When I thought about having a baby, I was overjoyed with happiness and the image of a cute cuddly baby. Don’t get me wrong. That was exactly how amazing it was! However, what I never expected was how much does a baby cost per month. It seemed like I was getting bills for everything left right and center. In fact, I was still paying bills well after his second birthday.
It was a relief to know that by exclusively breastfeeding we were saving so much money. I could not imagine having to shell out an extra few hundred a month on formula alone!
In A Nutshell…
- On average, middle-income families in the USA have estimated spending of $12,000 in the first year of having a baby
- The bulk of the expenses go to childbirth. Natural or vaginal birth costs about $16,165. C-sections have a price tag of about $24,572. While the least expensive but riskiest option, home births, can cost you about $5470.
- One-time expenses for the first year of having your child revolve around prenatal care, childbirth, baby furniture and equipment, and parental leaves
- On-going expenses include childcare, clothing, diapers, nursing, and feeding.
- Monthly, your average expenses would round up at around $1000-1500 per month.
- To cut down on costs, you can breastfeed, receive hand-me-downs, make home-made baby food, sign-up to local classes, or have family and friends babysit.
Birthing Costs in the USA
The numbers might be overwhelming, but a big chunk of these expenses actually come from hospital bills incurred for childbirth. That is why it is good to look at your birthing options even months before your due date so you can also financially assess what fits right into your budget.
Average Cost of Delivery A Baby in the USA
Low-risk pregnancies, healthy fetuses, and uncomplicated childbirths are wishes of every pregnant woman. However, even with the ideal birthing conditions, the combined costs for intrapartum care (just the actual delivery) makes up the bulk of the hospital bills.
For women that are enrolled under the public healthcare option, the Affordable Care Act, or other commercial health insurances, they will be entitled to receive partial coverage. This means that your health insurance will pay a larger portion of your medical expenses, leaving you with a smaller out-of-pocket healthcare cost.
Hospital bills often charge based on a list of fixed prices for their services. Looking at your initial bill may scare you, but then your health insurance should step in and cover up some of the cost. The hospital will then adjust the bill to the negotiated number, leaving you with just a fraction of the original cost. However, despite the coverage and help from health insurance, you’d be surprised at how expensive childbirth can still be!
Costs for Natural Birth/ Vaginal Delivery
Services you will be paying for: If you’re going for a natural birth, the biggest expenses you might invest are for pain management. The anesthesiologists administering your epidurals can be costly. The good thing is that your facility fees will be much lower considering that you won’t be needing any operating rooms.
| Average Cost of Natural/Vaginal Delivery: | $16,165 |
| Average Total Cost for Prenatal, Intrapartum, and Postpartum care: | $22,734 |
| How much money you may need to shell out: | $1,686 |
Costs For C-Section
Services you will be paying for: A C-section is an actual surgical procedure. So, expect higher facility fees (including the use of hospital equipment and operating rooms) plus the anesthesiology. Other than that, pharmacy and other professional services should be around the same as a vaginal delivery.
| Average Cost of C-Section Delivery: | $24,572 |
| Average Total Cost for Prenatal, Intrapartum, and Postpartum Care: | $32,062 |
| How much money you may need to shell out: | $1,948 |
With that being said, you will be saving around $300-400 from doing a natural delivery compared to if you underwent a C-section if you are under health insurance.
Costs for Home Birth
With all these hospital costs, you may opt for home delivery instead. Home births have been on the rise recently. It sounds appealing as you can do it in the comfort of your home without considering other expenses like the costly facilities fees we’ve been telling you about.
However, the cheaper price does come with many risks. The American College of Obstetricians and Gynecologists report a twofold increased risk for perinatal death. It should be considered as well that this type of birthing option may not be covered by your health insurance.
If you are a healthy mom with a healthy baby and expecting an uncomplicated pregnancy, consider these costs:
| Average Cost of Home Birth Delivery (Midwife Services) | $4,500 |
| Average Total Cost for Prenatal, Intrapartum, and Postpartum Care: | $ 5,470.99 |
Newborn Costs After Hospital Delivery
You’re not the only one being charged in the hospital when you give birth. Your baby also gets their own medical bill right after being born! This will mostly consist of professional fees (like for those that check on their hearing, eyesight, height, and weight) and some facility fees.
| Newborn Care for Vaginal Birth | |
| Actual costs | $5,809 |
| Out-of-pocket costs | $558 |
| Newborn Care for C-Section | |
| Actual costs | $11,193 |
| Out-of-pocket costs | $721 |
| Difference for Vaginal vs C-section Cost | ~ $200-300 |
Average Expenses How Much Does A Baby Cost Per Month
Anticipating the arrival of a new baby can be both exciting and financially overwhelming. Here’s the truth: Babies, even in their tiny sizes, come with such an enormous price tag! But how much exactly are you going to spend on your baby for its first year? What financial expenses should you be on the lookout for? Here’s a rough break down:
One Time Expenses
Having your first baby means starting completely from scratch. From baby furniture, strollers, cribs, bottles, and more — the list will go on and on.
- Prenatal Care and Childbirth. As mentioned earlier, the price for just being pregnant and giving birth can take up the most of what you’re going to spend in the first year. If you have health insurance, roughly around $2000-3000 will be allocated for medical bills. Note that this cost can vary from one state to another.
- Baby Furniture and Equipment. The next chunk of your expenses would likely go to baby stuff. This includes a car seat, baby carriers, strollers, play mats, bassinets, changing table, baby dresser, baby monitors, and diaper pails! According to a MoneyUnder30 article, this can roll around $2000.
- Parental Leaves. Expect potential loss of income if you or your partner take unpaid leave. According to the Family Medical Leave Act, employers will allow you 12 workweeks of leave to take care of a new baby. But, this might be unpaid. Consult with your employer about your benefits regarding parental leaves.
Recurring Expenses
Finally, the baby has arrived! But even if everything is set up and ready in the nursery, there are still on-going things you need to be supplying for. Factor in these regular expenses when making a budget for your baby:
- Child Care. Cost for childcare can be dependent on where you live, the age of your child, type of care, and how much care is required. You should also consider whether both parents will be working, or if one spouse will be staying at home to take care of the new baby. Several studies have rounded up the average cost of daycare at around $10,000 per year. If you would rather have a nanny or other in-home care, this can balloon to $28,000 per year.
- Clothing. Babies grow so fast! That’s why you may need to be buying them new gears and clothing every couple of months. The average cost for baby clothes is around $60/month for their first year.
- Diapers. Depending on your preference, diapers can come in a wide range of prices. On average, babies use about 2,700 diapers in their first year alone. Disposables can run about $0.20-0.30 per piece, amounting to about $40-50 per month.
- Nursing & Feeding. Planning to breastfeed? Good for you! Nursing your baby with breast milk can dramatically cut your baby expenses. The only thing you may need to pay for is your breastfeeding equipment and supplies. If you are under the public health insurance, you may also be eligible to get free breast pumps and other equipment! But if you decide to go with formula, anticipate having to pay around $60 per month. After 6 months, you would also have to factor in baby foods.
Calculate Your Baby Costs
Fortunately, nowadays, there are so many kinds of calculators that can give you an estimate of how much a baby would cost in their first year. Try this BabyCenter Calculator that considers ongoing costs (diapers, feeding, clothing, health insurance, toiletries, and college savings) and one-time costs (baby clothes and equipment, breastfeeding supplies, and nursery furniture).
How Much Does A Baby Cost Per Month?
Beyond the general one-time costs, here are the estimated monthly expenses for your baby’s first year:
1st Month: $10,000
Considering the expenses of preparing for your child’s arrival plus the actual delivery, the initial cost of having your child would be around $3000-4000. This number can vary depending on your location, with some states having higher prices for delivering a baby.
2nd and 3rd Month: $500
The first few months of caring for your child can be exhausting. With the work you put in with breastfeeding and childcare, your pockets will be happy to take a break as well. Your expenses will go into diapers, wipes, and maybe a few visits to the doctor. If you choose to formula feed, expect higher costs. Formula milk can run between $70-150 per month.
4th Month: $1,000
This might be the time you consider sending your babies to daycare. On average, in-center childcare costs almost $10,000 a year or $835 per month. Again, costs for childcare will be different from one state to another.
5th Month: $1,050
By the 5th month, your child might start weaning from breast milk and introduce solid foods. Choosing to serve homemade solid foods to your baby can save you a lot of money. But if you plan on spending on commercial baby food, this will cost you about $50 a month.
6th Month: $1,100
At 6th month, your baby has grown so much! The newborn clothes might not fit anymore and you may need to get some new gear. Baby clothes for 6 months old can cost around $50-100 a month.
7th to 9th Month: $1,200
Your expenses will regulate 7 to 9 months in. The additional expenses you may have to pay for would be around baby-proofing your home. This can cost you anywhere from $100 to $1000, depending on the size of your house.
10th and 11th Month: $1500
Once your baby gets a little bit more independent, you may want to start leaving them with babysitters. The average babysitting rate in 2018 was $16 per hour. This can be cut down greatly if you ask for family or friends to babysit.
12th Month: $1500-2000
Now that it’s been a year, you probably have a bird’s eye view of the possible expenses for your child’s second year. To celebrate, you may want to organize a first birthday party for your child which can cost you around $500-1000.
Money Saving Tips For Your First Year With A Child
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As first-time parents, going through the numbers can just drive you into a panic! If you are worried about your finances, there are steps you can do to cut down some costs and save up in preparation for when your baby arrives. It’s all about being organized, strategic, and sensible about your expenses. To help you out, here are some money-saving tips for your first year with a child:
Breastfeeding
Giving your child breast milk is one of the best and cost-efficient things you can do for you and your child. Health experts recommend breastfeeding exclusively for the first six months and extending it up to 2 years.
Feeding your child with breast milk instead of formula milk can save you up to $550 in your baby’s first year. Other than purchasing breastfeeding products, feeding your little one with your own milk supply will ultimately cost you nothing. In addition, you can even maximize your health insurance benefits by claiming free breast pumps!
Receive Hand-Me-Downs
You co-mommies will always be there to lend you a helping hand. Mothers generally love to pay it forward and are excited to give away old clothes, baby books, and even furniture! Take advantage of these and receive as many hand-me-downs as you can. This will drastically help you lower your babycare expenses.
Make Home-Made Baby Food
When it’s time to wean your baby, there will be so much commercial baby food to offer. The exciting flavors and foods can be so enticing to give. But if you add it all up, giving baby food from the supermarket can actually cost you quite a lot.
Making your own baby food at home can definitely give you great savings, estimated at around $240! What’s more, you can be more in tuned to your child’s nutrition because you’ll be the one preparing their meals.
Sign up Local Mommy-and-Me Classes
Your local community may have their own public programs catering to moms and newborns. If you sign up through your local mommy-and-me class, you could save up to $300.
Have Family or Friends Babysit
As mentioned, childcare could be one of the most expensive things to invest in, especially in their first year. If you have family and friends that are available, ask them to babysit sometimes. You could potentially be saving up $450 a year if your family or friends are up for babysitting.
The Bottom Line…
If you’re on the road to starting a family, it might be wise to be aware of how much does a baby cost per month. On average, middle-income families in the USA spend about $12,000 just on the first 12 months alone. Prenatal, delivery and postpartum care take up most of the expenses. To add, there are one-time and on-going expenses you’d have to consider. Roughly, monthly expenses to raise your baby could go from $1000 to $1500.
As advocates of breastfeeding, we encourage moms to be determined and give breastfeeding a try! If you want more information about the savings you can have from breastfeeding vs formula feeding, I share all about that in this post!
