Life is precious, but it will be more precious when someone new is welcomed into your family. Being parent for a newborn is an enormous responsibility with a beautiful journey into the new world.

When it comes to parenting, you have to count every second of your baby and every penny involves with your financial values. When you start thinking about having a baby, you may think of holding the newborn baby in your hands, not the financial costs.

But soon or later you have to think about the expenses involved during the pregnancy period and after the baby born. Typically, in the 7th month from the pregnancy period people started to stockpile the things like diapers, rip, clothes and car seat for the baby. It’s hard to notice those small expenses will become a mammoth debt one day. And of course, it will not be a worthwhile to scream or stress at yourself after you received the hospital bills.

Just to know: As per a report by the USDA, an average income (Middle) family would spend is nearly $12,000 in their first year of newborn life and for their care related expenses. Also, at the age of two, parents would pay more than $ 12,500 per year again. And these numbers will go up in the future as we speak.

The era we live where everything costs, which most of the new parents failing to ask one question that protect the family from future financial backlogs. Where still every prospective parent wants to know the specific answers to the question of how much does it cost to have a baby?

stages of child development
stages of child development

Since, you want to give best in everything to your newborn; from buying the diapers to going to the cesarean section will going to cost you some several hundred to thousands of money. DON’T BE ALARMED, because I will explain each those costs involved in the journey from pregnancy to birth of a baby. I would advise you to prepare your homework well before welcoming your little prince or princess into your life.

Why you need a baby budget?

“A budget is telling your money where to go, instead of wondering where it went” – Dave Ramsey

The truth from the Dave Ramsey quotes, an average middle-income parent is spending roughly $50 per week on diapers and baby food alone without any budget calculation. And forty percent of Moms said their expenses exceeded more than what they had expected or estimated at their maternity periods. So, spending without any personal budget plan can be an imperfect effect on you and your child’s financial wellness in the future. So keep in mind that, when you learned that you are pregnant, start to cut financial loose ends in your life and build a better financial cushion for your future.

For your better understanding, I have given some basic factors to be included while budgeting for your newborn.

A budget for your infant or the cost to have a baby in a hospital or home care center will depend on the  factors given below,

Type of Birth

Vaginal delivery without complications would cost an average of $2000 – $3600 for 7-10 births.

Vaginal delivery with complications would cost an average of $4000 – $8000.

Caesarean procedure (with or without complication) would cost an average of $6500 – $12500 according to HCUP for -5 births.

Premature or low weight infant births would cost 11 times more than the normal vaginal delivery without complication.

Hospital & Insurance You Choose

The simple fact is that the longer you stay in hospital, the higher the bill you will receive. Here below are some information you need to know before choosing the hospital and network coverage checks.

  1. When you are ready to choose a hospital, do research the things which are most essential to the mother & baby point of view. Check whether they have a blood bank facility, nearby your house, Quick ambulance service, well-trained staff and facilities to secure the health records of both mother and child on the go.
  2. For an alternative, you can also opt for sharing room options in the hospital. This would save you lot of money, but the service level would not be same as NICU.
  3. COST OF HAVING A BABY WITH INSURANCE: If you have insurance to cover your whole maternity care, check if your doctor will be covered under your insurance scheme option. This would cover up to 70% of your hospital bill amount.
  4. COST OF HAVING A BABY WITHOUT INSURANCE: No need to freak out! We still have better options if you don’t have insurance coverage. You have to be more careful with your priorities in your spending. Try to cut your financial loose ends, and save as much as you can for the future. Some hospitals would provide medical bill discounts for those who are low-income parents.
  5. If you are opted to go with the separate NICU (“Neonatal Intensive Care Unit”) or any other individual care units will give you the facilities included with incubators, phototherapy lights, feeding tubes, respiratory monitor, and cardiac monitor, besides they will have their well-trained staff to take care of your newborn.
  6. For other option, most of the companies would provide full or partial type of insurance coverage for their employees. When you are in a scenario of becoming parent, it will not inappropriate to talk with your human resources or any higher officials in your workplace for if there is any maternity related costs could be covered..
  • Mother & Baby Care Products
child development stages
child development stages

Hospital may be a hygienic place, but after you moved to your house, it would not be same as it. So, both mother and baby should need the clean clothes, furniture and toys. Keep this in mind when you are starting to shop for your newborn for the first time, as much as it will be exciting and overwhelming but also have to be money saving too. So, tell yourself for not to go for high-end luxurious products which can be used for only one time.

Cost of having a baby can be an emotional or sentimental for a parent if it is your first time, and buying expensive health care products or accessories would also be sentimental value for some people.

So, do try to focus on what you and your baby health need first, where the other baby accessories could be bought with the leftover money in your budget.

List of Pregnancy ProductsList of Baby Care Products
StrollersBaby bath time
Car seatsBaby clothes and blankets
Baby carriersBaby toys & activities
Diaper bagsBaby swings & bouncers
List of Nursery ProductsList of Feeding Products
Bassinets & basketsHighchairs
CribsBottle feeding
Changing tablesBreastfeeding & breast pumps
Baby monitorsSolid feeding
Baby furniture & décor 
Gliders & rockersList of For Mom
 Gifts for mom
List of Diapering ProductsMaternity clothes
Diapers and diaper pailsNursing bras and clothes
Diaper bagsPregnancy comfort & nursing pillows
Diapering accessoriesShopping Guides  and books
List of Health & Safety Products 
Baby proofing 
Car seats 
Medicine cabinet 
Safety gates 

I assure that the above list would have given you an idea of the mother and baby care accessories and answers to its necessary at every stage.

Average Cost Of Raising a Child: (A Cheat Sheet)

Here is a cheat sheet for each stage of a child with the cost estimation per year from infant to till 18 years. It would also differ depending on your location you live in and income level of your family. But this statistics would give you the basic understanding of raising a child.

AgeFoodClothesMedical & health costPersonal carePre/High School NeedsTransportationBaby careHousehold costSum

Basic Financial Tools That Will Help Your Child’s Future

We all are not financial experts, but three basic financial tools or services would serve you the assurance of your baby’s safety in the future.

  • Get a Life Insurance, and please don’t be hesitant on this one. Some few dollars would assure the financial support that your baby need if you or your spouse were to die unexpectedly  (Read: Life insurance benefits).
  • Everyone needs a Health Insurance because a single accident or illness would severely affect your savings and will put you into significant debts  (Read: How to Choose a Healthcare Plan).
  • It is important that you should estimate your child’s financial support after you die. So creating a will on your baby would protect the child in any economic uncertainty.

Ten Tips To Save Your Money

  1. Plan your budget from when you started to learn that you are pregnant. So, your normal life would not be hectic afterward.
  2. Negotiate the insurance coverage with your doctor as soon as possible. Because some hospitals do have the options for low-income people who can get deductions on their bill.
  3. Do check your medical bills carefully, because of 80% of the medical bills come with an error.
  4. Use crowd funding sources to decrease the medical costs
  5. Cut your costs on gas and electricity bills or any other unnecessary uses.
  6. Get help from friends, colleagues or relatives who were already in this situation before.
  7. Talk with your human resource manager or any higher officials at your workplace for if they have any options to cover your medical bills.
  8. Go to some thrift shops and get a used strollers and cribs or from your close friends.
  9. Do not stockpile the stuffs which you don’t need after a week or a month.
  10. Re-sell the things which you are never going to use after a year.

Bottom Line

“Making the decision to have a child—it’s momentous. It is to decide forever to have your heart go walking outside your body.” – Elizabeth Stone

Joy of being a parent is overwhelming, but also a responsibility to make sure the future of your baby would not be spoiled because of some simple financial slip-ups by you. So, prepare yourself for future, because it is always unpredictable and uncertain. Give your child a hope to take his or her first step into the future without any stumble.


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