Some studies show numbers ranging from $20,000 to $50,000 for the child's first year of life, depending on location and household income. Beyond the general items, like a stroller, crib, or car seat, here are some estimates of what you can expect to shell out in your baby's first year.
Bottom line: babies are expensive. Before you make that major life decision, take a careful look at your finances, since you'll need an average of $1,500 a month in your first year.
A normal pregnancy typically costs between $30,000 and $50,000 without insurance, and averages $4,500 with coverage. Many costs, such as tests that moms who are at-risk or over age 35 might opt for, aren't totally covered by insurance. Plan to have at least $20,000 in the bank.
Experts say the best time to get pregnant is between your late 20s and early 30s. This age range is associated with the best outcomes for both you and your baby. One study pinpointed the ideal age to give birth to a first child as 30.5. Your age is just one factor that should go into your decision to get pregnant.
There's no magic number that means you're ready for a baby, but you should take a look at your budget to see if your income can handle added baby costs like food, diapers, medical care, and clothing.
For a child born this year, that is the equivalent of saving $250 a month from birth for a child who will enroll in an in-state 4-year public college, $450 a month for a child who will enroll in an out-of-state 4-year public college, and $550 a month for a child who will enroll in a 4-year private college.
So, how much does it cost to raise a kid? The average cost of raising a child born to a middle-income, married couple is approximately $267,000 (in 2021 dollars) over a period of 18 years — or more than $14,800 a year per child for a typical two-child household according to a U.S. News & World Report.
Your baby needs between 6 and 12 diapers each day, possibly more in the early weeks. The American Academy of Pediatrics shares that families may spend close to $936 on disposable diapers in the first year (about $18 per week).
Cost of childbirth
In the U.S., the average cost of a vaginal birth is $13,024, including standard predelivery and postdelivery expenses such as facility fees and doctor fees. A cesarean section (C-section) is much more expensive, costing an average of $22,646 including standard predelivery and postdelivery expenses.
You can save half a million dollars if you don't have kids.
The USDA found that in 2015, single-parent households spent an average of $172,200 – more than $60,000 less than their married peers. When adjusted for inflation, that figure increases to $196,984 as a solo parent's current cost to raise a child to 18.
Yes, saving $300 per month is good. Given an average 7% return per year, saving three hundred dollars per month for 35 years will end up being $500,000. However, with other strategies, you might reach 1 Million USD in 24 years by saving only $300 per month.
Our rule suggests a savings target of approximately $2,000 multiplied by your child's current age, assuming attendance at a 4-year public college (at $22,180/year), and your family aims to cover approximately 50% of college costs from savings.
To decide what is best for your child, approach saving with a few considerations in mind. The general rule for saving is that a person should put at least 10 percent of their income away. Most financial experts accept this rule of thumb but point out that it is extremely general.
The costs of having a baby include more than just the actual childbirth. These costs also include the regular check-ups, tests and prenatal care associated with pregnancy. The average price of having a baby through vaginal delivery is between $5,000 to $11,000 in most states, according to data collected by FAIR Health.
The cost of raising a child until age 17 is $233,610 on average. Low-income married couples spend $174,690 on average to raise a child. Low-income single parents spend $172,200 to raise a child from birth until age 17. The average amount spent on raising a child in the Urban West is $245,460.
According to the U.S. Department of Agriculture, the average cost of raising a child to age 18 was $233,610 as of 2015. 1 With an annual adjustment for inflation of 2.2% each year factored in, the lifetime cost of raising a child born in 2022 could be estimated at $272,049.
A general rule of thumb is to have one times your annual income saved by age 30, three times by 40, and so on.
Results. Compared with married parents, childless married couples tend to have slightly more income and about 5% more wealth.
Excluding inheritance, affluent parents anticipated spending $711,000, on average, over their child's lifetime, according to a report by the hybrid digital wealth management firm Personal Capital.
Middle-income, married-couple parents of a child born in 2015 may expect to spend $233,610 ($284,570 if projected inflation costs are factored in*) for food, shelter, and other necessities to raise a child through age 17. This does not include the cost of a college education.
For the initial few weeks, a newborn baby may need about 10 diapers a day. As they grow older, their need for diapers decreases. By the time they become five months old, they may need about six diapers a day.
In 2020, the average cost of a complication-free vaginal delivery in the United States is $10,808. When you factor in before and after prenatal care, the costs soar to an average of nearly $30,000.