Is Having a Baby Affordable?
Have you been questioning whether you can manage the expenses of having a child? While the experience of raising children is invaluable, there are significant costs involved. As a new parent, you will encounter various expenses ranging from essential supplies like bottles and diapers to necessary equipment such as a stroller and car seat.
Discover the anticipated costs for the baby's first year and the average expenses of raising a child.
Key Expenses in the Baby's First Year
During a baby's initial year, major expenses include hospital bills for childbirth or adoption fees, as well as nursery equipment. Ongoing costs consist of food, diapers, childcare, and potential contributions towards a college savings plan.
According to the U.S. Bureau of Labor statistics, the average cost of raising a child in 2021 is over $16,000 per year when adjusted for inflation.
Initial Expenses in the Baby's First Year
When preparing for the arrival of your first child, there are many uncertainties. You may be contemplating what items are necessary to purchase and the total cost involved in becoming a parent. The average annual costs of raising a child can vary significantly based on the child's age and your household income, with higher-income households typically spending more.
Setting up a nursery and home involves getting essential items like a crib, crib mattress, dresser, electric breast pump, nursery rocking chair, stroller, bassinet, infant car seat, changing table, baby gates, play yard, high chair, baby swing, front carrier, nursing bras, crib bedding, bottles, activity center, bouncer seat, baby monitor, diaper bag, mobile, humidifier, nursing pillow, hamper, lamp for nursery, diaper pail, baby bath, and pacifier.
Setting up everything can cost a couple thousand dollars, but you may find secondhand items at lower prices or receive items as gifts. Expenses like childbirth costs for biological parents and adoption costs for adoptive parents can also be significant. Additionally, the Family and Medical Leave Act (FMLA) may result in income loss if you don't have paid leave.
Ongoing Costs
Once your baby is home, you can expect ongoing expenses like food, diapers, clothing, healthcare, child care, and toys/books/media. The USDA estimates that feeding a child costs about $1,810 annually using a moderate-cost plan, and infants need approximately $900 for diapers in the first year.
Child care costs can vary, with infant care at a child care center averaging $1,230 per month, and the cost of a nanny coming to about $612 per week. As your child grows, clothing expenses can also add up, with an average spending of about $50 per month for new clothes in the first year.
