According to TrustedCare.com, you should plan to spend an average of $1,100 to $2,500+ each month on food, diapers, clothing, health and childcare, and other essentials.2
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How much does a baby cost 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 expect in their baby’s first year.
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How much does it cost to have a baby?
According to a 2025 study from LendingTree, the average middle-income family could expect to spend between $16,490 and $36,472 on child-related expenses each year, depending on where you live. That’s a 35.7% increase from 2023.1 For newborns, the cost can be even higher. When you factor in healthcare (including birth), some estimates point to spending anywhere from $14,680 to $36,050 per child in their first year, depending on location and household income.2
According to LendingTree, families spend an average of 22.6% of their income on basic annual expenses associated with raising a small child, up from 19.0% in 2023.1
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. You should plan for at least $1,000 in medical care before birth. 3
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 $20,509, but those with employer-sponsored health insurance typically pay around $3,000 out of pocket.3 *
Estimated out-of-pocket expenses: $3,000
*Inflation-adjusted figures 2022-2025
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. 3 From there, add in approximately $70–$100 for diapers, wipes, and other sanitary supplies. 3
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?
A study from the Yale School of Medicine estimates that breastfeeding costs 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 each 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 roughly $50 per month on fruit, vegetables, and other healthy ingredients.
Clothing is another growing expense as babies outgrow outfits quickly. On average, parents spend about $55 per month on clothes, though hand-me-downs and secondhand stores can reduce costs.
Estimated monthly cost: $1,200
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.
Estimated total cost: $1,300
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 by Sittercity.com, the typical national hourly rate of babysitters as of December 2024 is $22.50 to care for one child. Since the rate you pay is usually negotiable, your monthly costs will depend on the length and frequency of the service.7
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 Fund or maybe purchase a bit more life insurance so that you can be sure your child’s financial future is secure.
Estimated monthly amount: $1,300
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 offers 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.
- Cash value growth: The policy builds 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 advantages: Cash value grows tax-deferred and can generally be accessed tax-free if structured properly.
- Low premiums: Premiums are locked in at the child’s current age.
- Guaranteed insurability: Once issued, coverage cannot be canceled as long as 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 develop a strong financial plan for your child’s future.
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.
Since every baby is different, it’s best to ask your pediatrician to see what’s appropriate given your baby’s age, weight, and health.
According to BabyCenter.com, parents spend approximately $70–$80 a month on disposable diapers.8
As of 2025, the average cost of a standard delivery in the U.S. is $20,509. If you have a caesarean or other complicated birth, the costs can be much higher.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 donated 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
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1 “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/
2 “Average cost of a baby per month,” trustedcare.com, September 4, 2024. https://trustedcare.com/costs/average-cost-of-a-baby-per-month
3 “How Much Does a Newborn Cost in the First Year, WECU.com. https://www.wecu.com/cost-of-having-a-newborn/
4 “A Year of Breastfeeding Costs Families as Much as $11,000, Study Finds,” Yale School of Medicine, April 4, 2023. https://www.babycenter.com/baby/formula-feeding/choosing-to-formula-feed_471
5 “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/
6 “This is how much child care costs in 2025,” Care.com,Jan. 29, 2025. https://www.care.com/c/how-much-does-child-care-cost/
7 “How Much Should I Charge for Babysitting or Nannying,” sittercity.com, December 20, 2024. https://www.sittercity.com/sitters/much-charge-babysitting-nannying
8 “How much does a baby cost per month?” babycenter.com, November 26, 2024. https://www.babycenter.com/family/money/top-baby-costs
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/