According to a study from LendingTree, it costs approximately $2,444 a month to care for a newborn in 20261—but it’s important to remember that most of these costs are not fixed and can change from month to month.
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How much does a baby cost per month in the first year?
Welcoming a baby is one of life’s most joyful milestones, but it also comes with significant financial responsibilities. From medical bills to diapers and daycare, the first year of raising a child can be surprisingly expensive. This article helps new parents prepare by breaking down the typical costs they can potentially expect in their baby’s first year.
KEY TAKEAWAYS
- While your baby may be little, it can have a major impact on your family’s finances. That’s why it’s so important to plan for the cost ahead of time.
- Preparing a budget can be difficult because the costs will rise and fall as your baby’s needs change.
- If you can manage it, consider purchasing life insurance to help provide financial protection for your family while also starting a 529 college savings plan early if college funding is one of your goals.
How much does it cost to have a baby?
According to a 2026 study from LendingTree, the average middle-income family spends approximately $29,325 on child-related expenses in the first year—not including hospital/birthing costs.1 While that works out to around $2,444 a month, it’s important to realize that these expenses are not fixed and can vary greatly from month to month. If you are operating on a strict budget, you may find a month-by-month breakdown to be more helpful in your planning.
Before birth: cost of prenatal care and preparations
Before your baby arrives, you’ll likely face significant expenses. While there’s no set list of must-have items, most parents invest in basics like a bassinet, bottles, clothes, and a carrier. The cost of these items can range from $1,170 to $4,550. Prenatal care is another important expense, and costs vary depending on where you live and the type of health insurance coverage you have. You should plan for at least $1,000 in medical care before birth.2
Estimated out-of-pocket costs: $2,170–$5,500
Month 1: delivery and medical costs
The first month is often the most expensive. It includes maternity care, the cost of delivery, post-natal care, and hospital stays. The average cost of giving birth in the U.S. is approximately $18,865 but those with employer-sponsored health insurance typically pay around $3,000 -- $5,000 out of pocket.3
Estimated out-of-pocket expenses: $3,000-$5,000
Months 2–3: cost of feeding and daily care
At this point, your expenses will be focused mostly on the day-to-day care of your infant, which includes activities such as feeding, bathing, diapering, and bathing. If you’re breastfeeding, your average costs will be significantly lower than if you use formula. A breast pump is a one-time cost that should run anywhere from $40 to $185 and bottles may add another $50–$60 to the equation.2 From there, add in approximately $70–$100 for diapers, wipes, and other sanitary supplies. 2
Estimated expenses: $350 per month (excluding formula)
How much does formula cost per month?
If your baby is exclusively formula-fed, powdered formula can cost $400–$800 per month.4
How much does breastfeeding cost?
While many people assume the cost of breastfeeding will be low, The Lactation Network reports that breast pumps, supplies, nursing consultants, and other expenses can cost families as much as $11,000 a year.5
Month 4: childcare costs
For parents returning to work, childcare often becomes the largest expense. According to Care.com, the average monthly childcare cost for one infant is $3,432 for a nanny, $1,372 for a daycare center, or $992 for home daycare.6 Since these costs will vary greatly by location, it’s important to contact several providers before working it into your budget.
Estimated monthly amount: $2,260
Months 5–6: growth and nutrition
Sometime around five months, babies begin eating solid foods. While they may not eat much, the cost of baby food can add up over time. Even if you make your own purees at home, there’s still a good chance that you will spend 157-$214 per month.
Clothing is another growing expense as babies outgrow outfits quickly. On average, parents spend about $40-$80 per month on clothes, though hand-me-downs and secondhand stores can reduce costs.7
Estimated monthly cost: $250
Months 7–9: babyproofing and safety
Babies typically begin crawling around this age, so this is the time to put up safety gates, and install door locks, knob covers, and outlet plugs. The cost of babyproofing will vary greatly depending on the size, age, and layout of your home. If you want, you could also hire a professional babyproofing service, however the cost of that could potentially run in the thousands.
Estimated total cost: $181-1648
Months 10–11: babysitting expenses
By this time, you may be thinking about a babysitter, maybe for a few hours here and there or to give you and your spouse an occasional night out. According to data from urbansitter.com, the average hourly rate for babysitters in the U.S. is $26.24 to care for one child, and $29.87 for two children. Of course, these rates can vary greatly depending on availability and location—as well as the length and frequency of the service.9
Estimated total cost: $1,100
Month 12: wrapping up and planning ahead
Congratulations—you’ve reached the end of your baby’s first year! Now that you have a clearer picture of your monthly budget, this might be a good time to do a little planning for the future. One option is to open a 529 college savings plan to help save for future education expenses. You may also want to review your life insurance coverage to help protect your family's financial future should something happen to you.
Estimated monthly amount: $300-$650 (529 Plan)10
Related: Life Insurance for New Parents
The benefits of life insurance for children
Now that you’re a parent, it’s worth considering how life insurance for children can help build financial security. Child life insurance can offer many of the same benefits as whole life insurance for adults but with lower premiums. Key benefits include:
- Lifetime protection: A policy purchased in childhood can provide coverage into adulthood as long as premiums are paid.
- Cash value growth: The policy may build cash value over time, which can be used for future expenses like college or a home down payment (accessing it reduces the death benefit and cash value).
- Tax-free access: Cash value grows tax-deferred and may generally be accessed tax-free if structured properly via partial surrenders and policy loans*.
- Locked-in premiums: Premiums are based on the child's age at the time the policy is issued.
- Continued Coverage: Once issued, coverage generally cannot be canceled as long as required premiums are paid.
Having a baby is an exciting and rewarding journey. While costs vary by location, childcare needs, and insurance coverage, working with a New York Life financial professional can help you build a strong financial foundation for your child.
How much does a baby cost FAQs
While it’s hard to put a specific dollar figure to it, you should probably have enough saved to cover any out-of-pocket medical costs, plus 3–6 months of living expenses.
According to totalcareaba.com, disposable diapers for a single baby will cost around $70 per month and $840 per year.8
The average cost of giving birth in the U.S. is approximately $18,865, however the cost can be much higher if you have a caesarean or other complicated birth.3
There are plenty of ways to cut back on expenses, such as buying second-hand clothes, breastfeeding instead of buying formula, and getting needed supplies gifted at a baby shower. If you’re lucky enough to have family nearby, you may be able to save even more if they can help with daycare.
A 2025 study conducted by LendingTree found that the average cost of raising a child to age 18 is $297, 674.9
As your family grows, so do your needs.
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*Policy loans and surrenders reduce the policy’s available cash surrender value and death benefit. Loans also accrue interest.
Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
1“The Cost of Raising a Child in the U.S. Now Exceeds $300,000.” LendingTree, April 10, 2026. https://www.lendingtree.com/debt-consolidation/raising-a-child-study/
3“How Much Does a Newborn Cost in the First Year, WECU.com. https://www.wecu.com/cost-of-having-a-newborn/
3“How Much Does it Cost to Have a Baby in the US,” FamilyEducation.com, 2026 figures https://www.familyeducation.com/pregnancy/preparation/how-much-does-it-cost-to-have-a-baby-in-the-us
4“Formula feeding your newborn or older baby,” BabyCenter, Accessed Oct. 8, 2025. https://medicine.yale.edu/news-article/a-year-of-breastfeeding-costs-families-as-much-as-dollar11000-study-finds/
5“The True Cost of Breastfeeding,” The Lactation Network, May 14, 2025 @ https://lactationnetwork.com/blog/the-true-cost-of-breastfeeding/
6“This is how much childcare costs in 2025,” Care.com, Jan. 29, 2025. https://www.care.com/c/how-much-does-child-care-cost/
7“How much does a baby cost per month?” Babycenter.com, May 26, 2024 https://www.babycenter.com/family/money/top-baby-costs
“How much do babysitters charge in 2026? Average rates by city,” urbansitter.com @ https://www.urbansitter.com/babysitting-rates/
8“How Much Do Babyproofing Services Cost?” HomeAdvisor.com, June 17,2026
https://www.homeadvisor.com/cost/handyman/install-childproofing-devices/
8“Diaper Facts & Statistics: Average Cost of a Diaper,” Total Care, Match 19, 2025 @ https://www.totalcareaba.com/statistics/diaper-facts
9“It Costs an Additional $297,674 to Raise a Child over 18 Years, Up 25.3%,” LendingTree.com, March 13, 2025. https://www.lendingtree.com/debt-consolidation/raising-a-child-study/
10“Have a 529 plan for your child’s education? Here’s how much you should be contributing every month,: CNBC Select, June 25, 2026 https://www.cnbc.com/select/how-much-to-contribute-529/