4 Big Baby Expenses to Plan For: A Practical Guide

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Having a baby is supposed to be a wonderful time. You should be excitedly preparing for your new addition.

However, many people have in the back of their minds the question of exactly how much is this going to cost?

The reality is that having a baby is going to cost you. I believe in being minimal and saving as much as possible. I have found many many ways to save money and you can too!

There are however 4 major expenses that are more difficult to avoid. We are going to talk about how you can prepare and budget for these 4 major baby-related expenses.

Let’s first jump into what these 4 major expenses are:

1. Medical Bills

2. Formula

3. Diapers

4. Daycare

One that you could avoid in this group is formula if you can breastfeed. With my first child, I did not pay a penny toward formula. However, I want to recognize that many families have formula as a consistent expense due to a variety of reasons.

Another expense you may avoid is daycare if you are planning to be a stay-at-home parent. If you are planning to take this route you are saving on daycare expenses, but also losing an income.  This may still require some budgeting to manage.

My point is that yes there is potential to avoid some of these four major expenses. If you are unable to avoid them though they are recurring and quite costly, so we need to budget appropriately.

1. Medical Bills

How much are medical bills going to cost you? First off if you live in the US or somewhere else you are going to have a completely different healthcare system.

I cannot speak for everyone!

My recommendation is to ask questions before birth. This will depend on the type of birth you have as well. It could be a home birth, birthing center, hospital vaginally, or hospital cesarean.

You also have the potential for the unexpected. You could experience complications and have a longer hospital stay. Your baby could also spend unexpected time in the NICU.

Medical bills can vary greatly.

Look up averages in your area. Call your hospital and see if they can give you information as to what you can expect. Review your medical insurance. You likely have a maximum out of pocket amount. Watch out for if your max out-of-pocket is for an individual or family. Call your insurance and ask for more clarity if you need it.

You can probably put your bills on a payment plan. I would immediately start paying your bills or putting money aside to pay your medical bills. Keep in mind they will start with pregnancy, not birth.

I would say at a minimum expect to pay $100 a month, but if possible budget more.

2.  Formula

If at all possible I strongly recommend breastfeeding either directly or via the breast pump and bottle. I realize some mommas have a difficult time. Babies may be born premature, moms may have complications resulting in an extended hospital stay, or you may even be adopting or using a surrogate and therefore not even have a milk supply at all.

I just want to reiterate if you are in a situation where you can avoid this expense I strongly recommend it.

Breastfeeding, though a huge commitment, is amazing. I would also like to point out that you don’t have to do it forever. Even if you only make it three months, that is three months of savings.  

If you are able to do a hybrid of breastmilk and formula you will decrease this huge expense.

If you are going full-time formula from day one let’s talk about budgeting.

The average cost of baby formula for the first year in the US is $1200-$1500. This will depend on which type of formula your baby needs as well as the cost of living in your specific area.

Let’s divide that monthly. We are looking at $100-$125 per month on formula.

I would also like to note that breastfeeding can be as affordable or costly as you make it. For example, mommas can spend money on nursing bras, breast pads, pumps, milk storage bags, and more. It is up to you how affordable you make it. If you can directly feed your baby because they are with you it will be the most cost-effective method. If you are interested more on the Subject check out The Top 17 Advantages of Direct Breastfeeding Over Bottle Feeding.

Also, remember that most insurance companies will cover the cost of a breast pump. Take advantage of this!

3. Diapers

Diapers are difficult to avoid. There are some systems out there such as elimination communication and cloth diapering. However, today we are going to discuss the typical disposable diaper route primarily.

With diapers, we also have wipes to consider.

On average you are going to spend about $70 per month on diapers and wipes.

Try to purchase cheaper store brands rather than name-brand items. Don’t start with the top of the line unless you can afford it.

Upgrade if your baby is having sensitivity issues.

4. Daycare

Daycare is huge!

Everyone has a unique situation but for the typical family, you are either keeping two incomes and placing your baby in daycare or dropping an income to have a parent stay home. Either way, you need to budget accordingly.

Your daycare budget is going to vary greatly based on where you live. I have seen numbers ranging from $6000 per year to up to $20,000 per year in daycare expenses.

I think a fair average for daycare costs in the US is $8,000 to $12,000 per year per child.

If you enroll your baby into daycare during their first year it will cost more. As your child ages, the price typically will be slightly reduced each year.

Let’s take $12,000 a year a divide it by 12 months. That is $1000 per month.

If you plan to send your baby to daycare start saving money immediately!

Cost Structures

All of these expenses vary in when they start and how long they last. Medical bills will start before your baby has even arrived. Diapers will start on day one, though hopefully, you received some as gifts to help out in this department. Formula expenses could start on day one or could start after you have given breast milk a good try first. Daycare could start at 6 or 12 weeks depending on your maternity leave.

All of these expenses last varying amounts of time. Your medical bills will be determined by your total cost divided by your payment plan. It is up to you how long you drag them out. Formula typically ends at the 12-month point, then you make the switch to cow’s milk.

Diapers are completely dependent on when you start potty training. Some children will be in diapers for up to three years.

And finally daycare. Daycare could run from 6 weeks of life until they hit preschool or kindergarten. You could also put your first child into daycare, but then after having a second or third child decide to become a stay-at-home parent because the costs of daycare are too high.

Your need for daycare is dependent on your lifestyle.

The chat above shows you when and for how long you could possibly expect to pay for these 4 expenses over time. You could map this out for your specific situation to help create a budget that is specific for you and your family.

The Big 4 Expenses

All of these expenses are recurring and consistent. You don’t get to buy diapers once and never again.  These are also not things you can buy used or second-hand. You can of course try to use coupons and find deals, and I strongly recommend you so!

These big costs are not the same as things like clothing or a baby swing. You can’t get them from a friend or a garage sale.

You are going to pay for them and pay a lot you will.

This is why I want you to budget specifically for these four items. Do your absolute best to save in other areas where you can.

Baby Items You Don’t Need

I also want to remind you that there are many baby items on registry guides that you do not need or need many of.

• Baby Towels
• Newborn Shoes
• Swing
• Bouncer
• Gadgets
• Blankets
• Excessive Clothing

Consider how much those big 4 items are going to cost you. Don’t blow your money on an expensive swing or bouncer. Our baby spent time on a blanket on the floor with the freedom to move rather than in the confines of a seat.

About a year or so ago I wrote an article 13 Baby Items You Can Absolutely Leave off Your Registry click to check it out.

Start Saving Now

Honestly, I don’t want to be dramatic but you should start saving now for your baby.

Consider opening up a separate bank account or start filling a cash envelope in a safe place.

You need to start stockpiling money to help you stay ahead.

If you have a difficult time saving actual money you could start making purchases and stockpiling supplies. For example, while you are pregnant every time you go to the grocery store or order groceries add on a box of diapers and wipes.

You can physically start getting prepared.

I will say though to be careful with this method. First off don’t buy a ton of size one diapers. You don’t know how long your baby will be in a single size.

You also don’t know if your baby will have sensitivity to specific diapers, wipes, or formula. Know your store’s return policy and keep receipt taped onto your stockpiled items.

Conclusion

I am not trying to scare you with these 4 big baby expenses but want to make sure you understand that these are essentials. They are more important than pretty wallpaper or aesthetic clothing.  Start saving as much as you can in whatever way you can.

Start making calls and getting the best deals you possibly can. Utilize your insurance to the max. Ask the billing department about any affordable options. Get samples of formula, diapers, and wipes. Put the time in now to save money in all ways possible.

Most importantly though love your baby. It will all be ok.

Check Out My Articles

Money-Saving Baby Item Swaps that are Simple and Effective

7 Smart Ways to Cut Costs and Save Money when having a Baby

The Top 17 Advantages of Direct Breastfeeding Over Bottler Feeding

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