How Much a Baby Costs the First Year

Q: What is the average cost of a baby for the first year?

The average cost of a baby in the first year can range from $16,000 to $28,000, depending on factors like location, childcare, and healthcare expenses. Costs include diapers, formula, clothing, medical visits, and baby gear. Families should budget for unexpected expenses and consider financial planning to manage these early costs effectively.

Q: How can you afford baby expenses for the first year?

Saving for a baby in advance can help you afford all the one-time expenses you’ll incur the first year. Creating a budget and savings plan will prevent the most common side effect of labor and delivery: sticker shock. Opting for pre-owned or hand-me-down items and having a baby shower with a gift registry can also help you collect the goods you need.

Q: Can you get a personal loan to cover baby expenses for the first year?

You can get a personal loan to cover almost any major expense, including the cost of having a baby. But proceed with caution before taking on debt for baby expenses. You’ll have to pay back the loan with interest, which will add to your costs over time. And there are better alternatives, including shopping for pre-owned supplies, soliciting hand-me-downs from friends and family, and monitoring your local Buy Nothing group on Facebook.

How much does a baby cost in the first year?

Rebecca SafierUpdated February 25, 2025

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

When you’re thinking about having a baby, it’s not unusual for couples to worry how that decision will impact their finances. As a parent, you’ll face plenty of new expenses: crib, stroller, car seat, diapers, and more. At the same time, your income can take a hit if one parent decides to cut back on work or quit altogether. Keep reading to learn how much a baby really costs in the first year, ways to save on expenses, and how many families are able to make it work.

Average Cost of a Baby the First Year

The average cost of a baby the first year varies widely depending on a family’s income and location. On average, first-year baby expenses can range from $16,000 to $28,000. However, take that number with a grain of salt, since most parents don’t pay full retail price for all of their baby supplies. Recommended: What Is a Personal Loan?

What’s Included in the Average Cost of a Baby the First Year

Parents encounter many brand-new expenses, from hospital delivery costs to diapers and equipment. Here are the major purchases you’ll need to consider.

Carriers and Car Seats

Leaving home with your baby isn’t easy. For one, you’ll need a fair amount of equipment. You’ll most likely need a car seat ($100-$500) and stroller ($55-$1,400), and perhaps a separate baby carrier ($30-$200). Opting for pre-owned items or hand-me-downs can significantly reduce costs. Just keep in mind that safety experts recommend purchasing a new car seat over a used one. Recommended: Opening a Savings Account

Nursery Furnishings

Since newborns spend most of their time sleeping, it makes sense to invest in safe and comfortable nursery furnishings. Many of these items can be borrowed or purchased second-hand. But as with car seats, safety experts recommend getting a brand-new crib. Below are items you may need and what you can expect to spend:

Crib or bassinet: $120-$1,000
Crib mattress: $30-$230
Crib sheets: $10-$100
Changing table: $100-$200
Nursing chair: $130-$1,100
Monitor: $15-$200
Diaper pail: $28-$130
Baby bath: $10-$40
High chair: $70-$150
Bouncer seat: $40-$210

Medical Bills

Medical bills vary depending on location and health insurance coverage. According to the Peterson-Kaiser Family Foundation, the average out-of-pocket cost for a vaginal delivery with insurance is $2,655, while a C-section is $3,214. The average adoption cost can range from $20,000 to $45,000. Costs vary significantly depending on whether you’re adopting internationally or domestically. And don’t forget all the pediatric visits babies need in their first year. If you have insurance, expect a copay for each doctor visit of around $20.

Nursing Supplies and Baby Food

If you think breastfeeding is free, think again. Nursing mothers will need a breast pump ($380 for an electric model). Nursing bras typically cost $25 to $50, while a nursing pillow may cost $25 to $50. Formula runs $45 to $100 per month, depending on the brand and whether it’s liquid or powder. When your baby graduates to solid food, expect to pay $37.50-$75 per month for jarred baby food.

Diapers

Diapers are another significant expense, considering infants can go through up to 12 per day. According to the National Diaper Bank Network, diapers usually cost $70-$80 per month. Baby wipes will be $10-$45 per month, and you’ll likely want to pick up special soaps and creams for your baby’s sensitive skin, too. Recommended: How Much Does the Average American Have in Savings?

Expenses You May Cut the First Year

Thankfully, due to lifestyle changes, there are several areas where new parents can easily cut back.

Dining Out

Eating out at restaurants significantly adds to your food costs. The average household spends $3,693 per year on restaurants. Cutting back in favor of meal planning and eating at home can result in major savings.

Entertainment

Entertainment, such as movies or concerts, are another area where you can cut back. The average household (sans newborns, presumably) spends $303 per month (or $3,636 per year) on entertainment. You’re back to Netflix and chill, with a decidedly different connotation.

Travel

You will likely cut back on travel during the first year of your baby’s life. About 44% of Americans take at least one trip per year, which can cost hundreds or thousands of dollars depending on how far you travel. Opting for staycations or local road trips during your baby’s first year can free up cash. Also, because hauling your baby with you on errands is a hassle, you may find you’re making fewer trips around town. And that can translate to lower gas bills.

Shopping

If you regularly shop for clothes and home goods, or enjoy mani/pedis and salon haircare, these treats will naturally taper off after your baby is born. The average American family spends $2,041 per year on clothing and related services.

How To Know if You Can Afford To Have a Baby

Given all the expenses that having a baby incurs, the prospect might feel financially overwhelming. Here are a few tips to know what you’re getting into and to prepare accordingly:

Find a budgeting style that works for you
Earn interest on your savings with a high-yield savings account
Consider opening a brokerage account to grow your money even more
Review your insurance policies
Make sure you understand your maternity and paternity leave policies

At the same time, remember that many of the items above are one-time costs. Plus, as we mentioned, you can save money by shopping for pre-owned items on eBay or Facebook Marketplace, and soliciting hand-me-downs from friends and family. And don’t be embarrassed to throw yourself a baby shower. This celebration, which originated in the 1940s-50s, was designed to provide parents-to-be with all the material goods they need. Amen to that.Recommended: How To Financially Prepare for a Baby

The Takeaway

Planning for a baby’s first year involves understanding and preparing for various expenses, from medical care and diapers to childcare and daily necessities. While costs can vary based on location and lifestyle, budgeting and exploring cost-saving strategies can help parents manage expenses.If you need a personal loan to help cover some of the costs, Lantern by SoFi can help. Just fill out one simple form and you’ll get offers from multiple lenders to help find the best fit for your needs.Lantern can help you compare online savings accounts and find today’s best rate.

Frequently Asked Questions

What is the average cost of a baby for the first year?

How can you afford baby expenses for the first year?

Can you get a personal loan to cover baby expenses for the first year?

Photo credit: iStock/monkeybusinessimages

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About the Author

Rebecca Safier

Rebecca Safier has nearly a decade of experience writing about personal finance. Formerly a senior writer with LendingTree and Student Loan Hero, she specializes in student loans, financial aid, and personal loans. She is certified as a student loan counselor with the National Association of Certified Credit Counselors (NACCC).

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