It’s no secret that raising babies costs money. However, for new parents, it can be shocking to find out how expensive everything baby-related can be. Still, there are ways to save money on child prep and raising. Creating your baby budget doesn’t have to be as daunting as it may seem! As a stay-at-home mom and mom of a toddler and preschooler, I’m constantly thinking about my family’s budget. Between Diapers and clothing, Baby equipment and the essentials, and planning ahead for the future, budgeting With each child, the family inevitably becomes more and more involved. To help you with this, I’m sharing pregnancy budgeting and saving for baby tips for new and expectant moms, including a helpful checklist. I hope you find these practical money-saving tips for your growing family as useful as I do!
While costs vary, new parents can expect to spend thousands to tens of thousands of dollars per year per child on basic needs like food, clothing, health insurance and child care. According to LendingTree, the cost of raising a child increased 19.3% nationwide between 2016 and 2021—from an average of $18,167 to $21,681.1 A more recent state-by-state study conducted by SmartAsset in 2023 shows that the average annual cost ranges from just under $15,000 to over $35,000.2 When you consider these numbers, it is easy to see how important Budget planning for a baby can be for new and expectant parents.
When and how to create your family’s baby budget
The best method of saving money for children varies from family to family. The important thing is to plan your growing family’s finances in a way that is realistic and practical for you as you prepare to welcome your newest member. Here’s how to plan your baby budget early by crunching numbers Before Planning for the baby’s arrival can help avoid unnecessary stress. Once you know you’re pregnant, you can start thinking about your family’s needs and priorities. From there, you can categorize the expenses you expect.
When creating your baby budget, consider the following:
1. Health care – for the baby and you
It’s important to plan for not only the costs that will be incurred while you’re holding your baby in your arms, but also those that will be incurred leading up to their big arrival. Pregnancy, labor, and delivery bring with them a number of costs that can surprise new moms. You’ll want to take a close look at your insurance policy and make sure you have a plan to cover any out-of-pocket health-related costs.
Babies’ daily needs (such as food, clothing and diapers) are simple but extensive in the first year. Infants eat frequently and grow quickly, which means they consume a considerable amount of food and clothing in the first few months. In addition, Newborns use a lot of diapers. You should consider all the details here: Plan Breastfeeding or bottle feeding? Are you getting baby clothes from loved ones or are you building a complete baby wardrobe from scratch? Are cloth diapers an option or are you sticking safely with disposable diapers? All of these factors can (and will) affect how much you spend on your baby’s daily necessities.
Whether you plan to return to work immediately after your maternity leave or stay at home with your child until he or she is ready for school, you should consider how your family’s childcare structure will affect your finances. If your family chooses the first route, it is wise to carefully compare childcare options. Between day care centerhome childcare and nanny The cost of these services can range from affordable to nearly mortgage-level costs. If you stay at home with your little one, you’ll want to adjust your family’s regular budget to compensate for any loss of income.
4. Education and Saving
Aside from the immediate needs for the baby’s first year, it’s never too early to start planning for the future. If it’s within your budget, Save money for your child’s college education and other savings that can pay off later. If you need help here (or in any of these categories), a fiduciary financial advisor can be a great help when you’re trying to create a savings plan for a baby.
Pregnancy involves a lot of planning and preparation – and finances are no exception during this crucial time of your life. With the above points to consider, here is a basic checklist to help you get started on your pregnancy and baby budget:
- Baby clothes (including sleeping bags)
- Baby food
- Bath soap
- Breast milk bags for mothers who pump
- childcare
- Savings on college education
- Diapers
- formula
- laundry detergent
- Life insurance
- Medical bills
- Health insurance
- Further savings
- Toys and books
- Other/Miscellaneous (diaper cream, medication, etc.)
Once you’ve identified your family’s needs and priorities in terms of your baby budget, you can focus on how to save money before and during your child’s first year. Start with these simple money-saving tips for new and pregnant moms:
It can be tempting to go on a shopping spree and buy all the cute onesies, pajamas, booties and blankets you can find. But there’s no need to overdo it. From experience, I can say that your little bundle probably won’t even get a chance to wear some of the stuff you buy for those short early stages! Instead, I recommend budgeting for the basics – and not buying too much too far in advance. Babies grow at different rates; what fits one baby in one season may not fit another at the expected time.
Social media can give the impression that you have to get the stamps and Baby equipment that “everyone else” is buying for their new arrivals. But that’s simply not the case – and not always realistic either. New is not always necessary when it comes to clothes and other baby items like strollers, toys and even diaper bags. Facebook Marketplace, Garages for saleThrift stores and bargain bins are a great place to start when planning your baby budget!
Note: Do not buy used child seats. Restraint systems are designed for one-time use in the event of an accident. Even if there is no visible damage, hidden damage may be present. Without knowing the history, it is impossible to determine whether the child seats have already been involved in an accident.3
DiapersWipes, baby formula, bath products and more are among the many items you can buy in bulk from wholesalers. If there’s a Costco or Sam’s Club near you, consider joining. This can result in big savings once your little one arrives.
4. Consider generic brand products
With endless options on the market for Baby supplies (from diapers to baby food and everything in between), it can be tempting to buy luxury brands for your little one. But don’t judge generic brands before you try them. For example, I personally love Target’s Up & Up diapers!
5. Accept help (and used clothing) when it is offered
They say it takes a village to raise a child, and I’m a firm believer that as a mother, using that village to save money can come in handy. Since having kids, I’ve learned to gratefully accept occasional offers from friends to hang out with my kids when I’m in a childcare bind. I’ve also received a plethora of clothing that once belonged to my loved ones’ babies… and I haven’t taken a single piece for granted. Baby care and clothing are expensive; accepting help and Used things can be a great relief.
If you don’t have a village, you can work on building one. For occasional childcare needs (including those always-necessary date nights!), you could find a family with whom you can trade weekly or monthly babysitting shifts.
If you are expecting your first child and have a gaggle of eager relatives and friends to share the excitement with you, you can also expect to receive baby items as gifts before and/or after your little one arrives. My firstborn got so much “stuff” from family and friends during the first year that we eventually ran out of room in her already cramped nursery. With my second child, I greatly reduced my own purchases for him and his room. This saved both space And Money!
7. Use free programs and services
If you live in a family-oriented city like me, you may want to sign up for every “mommy and me” class you can find as soon as your kids are old enough to attend. Before you blow your budget to join in on all the fun, check out your local libraryCommunity centers and even museum programs. You can often find free (or very low-cost) programs and events there! Also, check with your hospital or pediatrician’s office to see what services are available free of charge for pregnant women and new mothers – such as Birth preparation courses and breastfeeding counseling services.
Make a plan…and stick to it!
When thinking about how to save money for your kids, it’s best to plan ahead (but be prepared to adjust as you go). Then, create a pregnancy and baby budget… and stick to it! With a little preparation and the money-saving tips I’ve shared above, it’s absolutely possible to save money and get by on a comfortable budget as a pregnant woman or new mom.
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