It’s no secret that raising babies costs money. It can, however, be shocking for new parents to discover how expensive all things baby related can be. That said, there are ways to save money while preparing and raising children. Creating your baby budget doesn’t have to be as scary as it may seem! As a stay-at-home mom of a toddler and preschooler, I’m always thinking about my family budget. Between diapers and clothes, baby gear and essentials, and planning for the future, budgeting inevitably gets more involved with each child. To help you out, I’m sharing pregnancy budgeting and baby saving tips for new moms and moms-to-be, including a helpful checklist. I hope you find these practical tips for saving money for your growing family as helpful as I do!
Although costs will vary, new parents can expect to spend thousands to tens of thousands of dollars per year per child on basic needs such as food, clothing, health insurance and child care. According to LendingTree, the cost of raising a child increased 19.3% nationally between 2016 and 2021 — from an average of $18,167 to $21,681.1 A more recent, state-by-state study done by SmartAsset in 2023 shows average annual costs ranging from close to $15,000 all the way up to over $35,000.2 With these numbers in mind, it’s easy to see how important a baby budget can be for new and expectant parents.
When and how to budget for your family’s baby
The best way to save money for kids will look different from one family to the next. What matters is planning your family finances in a realistic and practical way as you prepare to welcome your newest member. Start with your baby budget by crunching numbers before The arrival of the baby can help relieve unnecessary stress when the baby arrives. Once you know you’re expecting, you can start thinking about your family’s needs and priorities. From there, you can categorize your expected expenses.
When creating your baby budget, you’ll want to consider the following:
1. Health care — For baby and you
It’s important to budget not only for expenses that will occur once your baby is in your arms, but also for those that will lead up to their big arrival. Pregnancy, labor and delivery involve a number of associated costs that may surprise new mothers. You’ll want to carefully review your insurance policy and make sure you have a plan to cover any health care-related expenses.
Daily needs for babies (such as food, clothes and diapers) are simple but extensive during the first year. Babies eat often and grow quickly, which means they go through a significant amount of food and clothing in the first few months. Additionally, newborns go through many diapers. You’ll want to consider all the details here: do you plan to breastfeed or formula feed? Will you be receiving baby clothes from loved ones or curating an entire baby wardrobe from scratch? Is cloth diapering an option or are you sure you’ll stick with disposable diapers? All of these factors can (and will) affect how much you pay for your baby’s daily needs.
Whether you plan to return to the workforce immediately after maternity leave or stay home with your child until school age, you’ll want to think about how your family’s childcare structure will affect your finances. If your family goes the former route, it’s wise to do your due diligence to compare childcare options. Between day care, in-home child care, and nanny services, costs can range from affordable to nearly mortgage high. If you’ll be staying home with your little one, you’ll want to adjust your regular family budget to account for any lost income.
4. Education and Savings
Aside from the immediate needs of baby’s first year, it’s never too early to start planning for the future. If it’s within your budget to set aside money for your child’s college education and other savings, doing so can pay dividends down the road. If you need guidance here (or with any of these categories), a fiduciary financial advisor can be a great resource to help put together a savings plan for a baby.
Pregnancy is full of planning and preparation – and finances are no exception during this pivotal time in your life. With the above considerations in mind, here’s a basic checklist to get you started on your pregnancy and baby budget:
- Baby clothes (including sleeping bags)
- Baby food
- Bath soap
- Breast milk bags for pumping moms
- Childcare
- Saving for a college education
- Diapers
- Type
- Laundry detergent
- Life insurance
- Medical bills
- Medical insurance
- Other savings
- Games and books
- Other/Miscellaneous (diaper cream, medicine, etc.)
Once you’ve determined your family’s needs and priorities for your baby’s budget, you can start focusing on how to save for your little one’s first year. Go ahead and get started with these simple money-saving tips for new and pregnant moms:
It can be tempting to let yourself go on a shopping spree for all the adorable clothes, bedding, baby shoes and blankets you can find. But you don’t have to overdo it. Speaking from experience, your little pack probably won’t even get to wear some of the items you buy for those short-lived early stages! Instead, I recommend budgeting for the basics—and not buying too much up front. Babies grow at different rates. What suits one infant at one time may not suit another at the expected time.
Social media can make you look like you I have to get the brands and baby items that “everyone else” buys for their new arrivals. But that’s simply not the case — nor is it always realistic. New isn’t always necessary when it comes to clothes and other baby items like strollers, toys, and even diaper bags. Facebook shopping, garage sales, consignment stores, and clearance racks are all worth making friends when budgeting for a baby!
Note: Avoid buying used car seats. Restraints are intended for single use in the event of a collision. Even if no visible damage is apparent, there may be hidden damage. Without knowing their history, it is impossible to confirm if they have been involved in an accident in the past.3
Diapers, wipes, baby food, bath detergent and more are among the many items you can buy in bulk from wholesale retailers. If you have a Costco or Sam’s Club near you, consider getting a membership. Doing so can add up to big savings once your little one arrives.
4. Consider generic products
With endless options on the market for baby essentials (from diaper needs to formula and everything in between), it can be tempting to splurge on luxury brands for your little one. However, don’t knock the generic brands until you’ve tried them. First, I personally love Target’s Up & Up diapers!
5. Accept Help (and Hand-Me-Downs) when offered
They say it takes a village to raise a child, and I firmly believe that using said village can be helpful in saving money as a mom. Since having kids, I’ve learned to graciously accept occasional offers from friends to hang out with my kids if I ever find myself in a childcare bind. I have also received a plethora of clothes that once belonged to loved ones babies. . . and I haven’t taken a single element for granted. Baby care and clothes are expensive. Accepting help and shaking hands can be a huge relief.
If you don’t have a village, you can work to build one. For occasional childcare needs (including the ever-necessary date night!), you might consider finding a family to swap weekly or monthly babysitting shifts.
If you’re expecting your first child and have an eager crowd of family and friends sharing in the excitement, you can also expect to be given baby items before and/or after your little one arrives. My firstborn received so much “stuff” from family and friends during her first year that we eventually ran out of room in her already cramped nursery. With the second one, I spent a lot of time with my own purchases for him and his room. This saved space on both and money!
7. Take advantage of free programming and services
If you live in a family-oriented town like I do, you may be eager to sign up for every “Mommy and Me” class you can find once they’re old enough to join. Before breaking your budget to get in on all the fun, check out your local library, community center, and even museum programming. You’ll often find free (or very low cost) programs and events! Additionally, check with your hospital or pediatrician’s office to see what services are available to pregnant and new mothers for free — such as childbirth preparation classes and lactation consultant services.
Make a plan. . . And stick to it!
When thinking about how to save money for the kids, the best thing to do is plan ahead (but be willing to adapt along the way). From there, create a pregnancy and baby budget. . . and stick to it! With a little preparation and the savings tips I’ve shared above, it’s totally possible to save money and live on a comfortable budget as a pregnant or new mom.
