Year 1 Baby Costs: It's More Than You Think

Budgeting for a baby isn't easy. Of course, you'll plan for big, one-time expenses like a car seat and stroller — but did you remember to budget for the monthly cost of baby food?

If you understand the costs of having a new baby, you can decide which items to include in your budget and which to skip. In general, we'll go through some common baby-related spending categories and a few ways to save on each. 

Takeaways: Budgeting for a Baby's First Year

• First-year baby costs range from around $16,905 to $28,166.
• Avoid overspending by reviewing all possible expenses for your baby's first year, and prioritizing needs versus wants.
• Top baby budget expenses include diapers, clothes, food, child care and health insurance. Look for cost savings in these areas, if possible.
• Research pricing for first-year items and decide if you'll get them new, used or borrowed. Or request items as baby shower gifts.

How Much Should I Budget for a Baby?

Your budget should be based as closely as possible on how much you think you'll spend. A married, middle-income family could expect to pay about $16,905 a year on baby-related expenses in the first two years of their baby's life. 

That number is based on the most recent available research by the U.S. Department of Agriculture (PDF), using a 2024 Consumer Price Index Inflation calculator adjustment.

A 2023 analysis by LendingTree estimated even higher expenses due to inflation's impact and other cost increases. Lending Tree calculated around $21,681 in annual expenses to raise a small child in 2021. Costs increased heavily for transportation, food, clothing and health insurance premiums.

The Lending Tree survey also found that Hawaii was the most expensive state to raise a child, followed by Washington, D. C., and Washington state. In Washington state, the annual total comes to a whopping $28,166. The least expensive state was Mississippi, at $15,555.

It's easy to see why an estimate and final number might differ — perhaps you forgot to plan for everything. Or you didn't think you'd need a swing, but you buy one in desperation after a sleepless night.

Tip: Your annual first-year baby expenses depend heavily on factors such as needing to pay for child care or items you requested but didn't receive on your registry. Use The Bump's Baby Budget Calculator to get more in tune with your expectations, but note that it was last updated in 2023.

One-Time, Recurring and Occasional Baby Costs 

Consider the big, one-time outlays and recurring monthly costs when considering baby expenses.

As a new parent, you'll also need to consider the costs that crop up every few months. Ideally, you'll plan for these costs, too, to avoid reaching for your credit card. For example, if you expect to buy a $50 baby gate when your baby is six months old, put away $10 per month when your baby is one month old.

Occasional Cost Examples:

• Toys, entertainment
• Clothing as your baby grows.
• Hygiene supplies
• Haircuts
• Copays for non-preventive doctor visits

What Are the Most Expensive Items To Budget for When Having a Baby?

Some items seem inexpensive initially but add up fast, including strollers, diapers, baby clothing and more. How can you budget for these items? Let's review what's involved with budgeting for baby gear.

Strollers

While it may be possible to pick up a simple stroller for around $25, many parents opt for strollers with more functionality — and strollers can run up to $1,000 or more for a premium, complete system with a car seat. Of course, buying a gently used stroller on Craigslist, Facebook Marketplace or at a children's consignment or resale store is one way to save.

Some parents choose a sling or another type of baby carrier in addition to or instead of the stroller. These may be less expensive overall but can run from under $50 to $200 or more.

Tip: Buying a baby carrier or stroller designed to grow with your baby ensures it's a one-time cost versus needing to return to the store as your little bundle grows.

Some parents choose cloth diapers, but this option comes with its own costs, including diaper covers and laundry costs, whether for a diaper service or the increase in utility costs from washing them yourself at home.

Baby Clothing

Your little bundle outgrows clothing in weeks, not years. Babies triple their birth weight in the first year, after all. For a baby's first-year clothes, plan for five age ranges: newborn, 0-3 months, 3-6 months, 6-9 months and 12 months.

One newborn's outfit set may set you back $15 or more if you buy new clothes. If you use one outfit set per day of the week, that's $105 in your baby budget in the first month alone on the low end — until your baby outgrows that set. Any new parent will tell you that babies are messy, so you can expect a few daily outfit changes.

In addition, clothing is another category of inflation influenced over the past few years. However, between August 2023 and August 2024, infant and toddler apparel costs decreased by 2%. Overall, since 2020, prices have increased significantly.

Stretch your clothing budget by buying slightly larger items, cleaning and caring for clothes, asking for hand-me-downs and gently used apparel from friends and family or shopping at consignment stores. 

Baby Toys and Entertainment

While baby toys may seem inexpensive, many parents don't realize the importance of entertaining a baby until after they have arrived — and you need to cook dinner or have a phone conversation. Just an infant swing could cost $89 or more. Items to keep your baby happy could include these one-time and recurring purchases:

Of course, babies can be entertained by library books and pots and pans, so consider less expensive, simple options. Small, inexpensive toys can also be a great baby shower gift. You could also borrow toys from another parent or family member or visit consignment stores for clean, high-quality toys.

Baby Food and Nursing Accessories

In the first six months, your baby will mostly grow with formula feeding or breastfeeding. According to the U.S. Department of Human and Health Services, formula can cost up to $1,500 in the first year. 

Breastfeeding comes with expenses, too, including nursing bras, pads and nursing-related equipment for expressing and storing milk. However, ACA-compliant healthcare plans must offer coverage for breastfeeding support, counseling and equipment, including a breast pump.

Once your baby has moved onto solid foods, the cost to feed a one-year-old child (PDF) is $157 to $214 per month as of July 2024, the USDA estimates. Estimate a little less for a child under age one.

You're also likely to go through trial and error when determining what works best for you and your baby. You might end up buying some "one-time" items a few times.

Hospital and Doctor Visits

You'll likely add your baby to your health insurance plan. If you're on an employer-sponsored plan, you'll probably pay an average of $6,575 toward the cost of family coverage, according to the 2023 Kaiser Family Foundation report.

If your family needs insurance, research options including Medicaid (Apple Health) and health savings through the Marketplace.

Baby Health and Hygiene

You'll also need to budget for the ongoing costs of health, which can help preventative visits turn out well. Many health and hygiene items are baby-specific — for example, tiny nail clippers for tiny toes.

One-Time Baby Health and Hygiene Expenses:

• Baby towels and washcloths
• Baby bathtub
• Baby skin and hair supplies (clippers, brush, comb)
• Humidifier for cold and flu season
• Thermometer
• Nasal aspirator

Recurring Baby Health and Hygiene Expenses:

• Baby soap and shampoo
• Baby sunscreen
• Baby first-aid supplies
• Medicine
• Haircuts

Child Care Costs and Babysitters

In Washington state, you'll pay an average of $15,996 ($1,333/month) for infant or toddler care in a child care center, according to the organization Child Care Aware. You'll pay less for child care in a home, at $13,236 ($1,103 /month). 

Daycare and preschool costs increased 6.2% between August 2023 and August 2024 due to inflation.

This cost is almost equivalent to the total first-year infant costs and more than in-state tuition at the University of Washington. The good news: Child care expenses will likely decrease as your child grows.

Budget for a babysitter, too, if you'd like a night out. Babysitters in Seattle with 2-5 years of experience cost about $23.75 an hour, according to babysitting rates from Care.com.

Going out for four hours per month is about $95 a month before tips. You could also save by asking family members to babysit or even trade babysitting duties with other parents.

Nursery Setup

One-time expenses for the nursery might include a crib or baby bed. These are likely among the most expensive items to budget for, ranging from about $119 to almost $1,000. Save on these nursery costs by listing them on your baby registry or finding them used in thrift stores.

Nursery Costs:

• Crib mattress, bedding
• Co-sleeper
• Glider or rocking chair
• Dresser
• Lamp and other decor
• Baby monitor
• Nightlight
• Clothes hamper

Saving for Parental Leave

After your baby's birth or adoption, you may be eligible for up to 12 weeks of unpaid family leave under the federal Family and Medical Leave Act. However, you'll need to budget for the loss of household income during parental leave, whether one parent or both will take time off.

If you live in Washington, you might qualify for paid leave. You could receive up to 90% of your weekly pay or up to $1,456 in 2024.

Miscellaneous Baby Costs That Could Impact Your Budget

The USDA's estimates regarding child costs (PDF) also includes a few factors we didn't already discuss. Namely, having a child may lead to increased costs for:

• Housing size
• Electricity, gas and water
• Transportation, such as more fuel for increased vehicle trips

The USDA estimates that the highest costs in the first two years include housing, child care and transportation.

If you need to increase your bedroom count to give your child a room, first-year costs can skyrocket, particularly in Seattle. You may use more utilities if you're washing cloth diapers or onesies or heating and lighting an extra bedroom.

You might feel a larger vehicle with more room is needed. All of the above could lead to higher monthly payments in the form of a mortgage or rent, utility bills or a car loan.

How To Avoid Debt When Having a Baby 

Adding a new member to your family can add up in multiple ways.

Resources

• BECU Automated Savings
• BECU Financial Health Check
• How To Set a Budget video
• Free BECU Webinars

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