First Year Baby Expenses to Budget For

If you’re reading this article, congratulations on the new addition to your family! However, as exciting as this time is, it could also be overwhelmingly stressful, especially when you consider how expensive it is to raise a child. Not only does being parent cost you time, but it also costs you money — the price of raising a kid is estimated around $245,000 dollars! That being said, it’s a good idea to start budgeting for your baby now. Read on to learn tips on the first year baby expenses you should budget for.

A Note Before We Go to the Store

Please make sure that you wait before you go to the store and buy every little thing your baby can possibly need! Once you announce that you are expecting, you will be surprised to see how many people will run to your aid. You’ll likely be offered cribs, second hand clothes and favorite toys from many friends and relatives. Keep in mind that we haven’t even mentioned the gifts you’ll receive at the baby shower. Babies are expensive; there’s nothing wrong with waiting to see what you truly need to buy.

Nursery Furniture

Every baby needs a proper nursery. If you’re looking at a super basic setup (crib mattress and changing station) expect to pay a minimum of $200.00 per item. That doesn’t include the accessories and auxiliary costs such as bedding, painting the room, monitors, and toys such as a bouncy seat. When you add in all of these factors, expect to pay at least $1,000.00 — but depending on taste, you can pay thousands more.

Medical Bills

Most people go to the hospital to give birth, but not everyone has insurance! When you are having a baby, chances are you are going to accrue many expenses from prenatal care to post-partum care. The cost is different for every person but typically if you are insured, you’ll pay between $450 – $700 and if you are without insurance, you’ll pay $7,000 – $11,000 for total maternity care. Check your insurance policy to determine how much you really have to pay.

Car Seats, Strollers, Diaper Bags

Attention: prepare for baby! Eventually, you’re going to have to take your bundle of joy out of the house and into the world. The cost of a car seat, stroller and diaper bags will cost you a minimum of $400.

Diapers

Everyone knows babies need diapers, and lots of them. These will cost you between $550 – $650 per year. Be sure to buy in bulk (Costco can be your friend) and even consider using cloth diapers to cut costs.

Food

It’s amazing how much food a baby can eat. Expect to spend a minimum of $1500 per year on food. Unfortunately, the cost will likely be higher as your child gets older.

Childcare

Yes, this is a big one! The charge for babysitting or daycare can range from $6,000 per year to as high as $25,000 per year. Choose wisely, and keep in mind if you have a supportive, available family, family members will likely volunteer to watch your child now and then.

Clothes

Every new mother loves clothing their baby! Expect to pay between $50 – $100 during the first year on clothes. Keep in mind, though, that many people overbuy on their babies’ wardrobes and then sell the clothing at garage sales, in consignment stores, or in lots on eBay. You can get great deals on gently used baby clothes that would cost a fortune new.

Moral of the Story

Babies are expensive, but being prepared can help you deal with those expenses. Once again, congratulations on your new addition to your family — now start saving your pennies!