The costs of raising a baby in their first year have quickly gone up.
It now costs an estimated $20,384 for a baby's first year, according to research by parenting website BabyCenter, marking an increase from $15,775 in 2022 when the calculation was last made during rising inflation.
On average, BabyCenter said parents will spend around 31% of their income on first-year baby expenses.
Those costs also don't include giving birth.
The mounting costs are causing stress: 89% of mothers said finances harm their mental health, according to a BabyCenter survey of 1,399 moms between Jan. 17 and Feb. 3.
As a result, a quarter of mothers surveyed said they have decided to have fewer children and another 26% have delayed having more kids.
Parents can customize their calculator to get estimated expenses through BabyCenter's First-Year Baby Costs Calculator web page.
How to save money on baby expenses
BabyCenter has some tips for parents who want to save money on their child's first year:
- Shop last year’s models of common gear: A baby monitor that was considered state-of-the-art in 2023 or 2024 works just as well as a newer version that has a couple of extra features. It's cheaper, but still safe and functional. And remember: All car seats sold in the U.S. meet the same safety standards, so a cheap one is just as safe as an expensive one.
- Buy some baby items second-hand: That is safest for clothing and toys. Just check recall notices, and try to buy important safety gear (like car seats, cribs, and mattresses) new if possible. Your state may also have a local public program that distributes car seats for free.
- Look for ways to save on childcare: It's far and away the biggest line item, so check out co-ops, nanny shares, the child tax credit, dependent care FSAs, employee assistance programs, and other hacks that can shave off some of the expense.
Email Dieter Holger at dholger@consumeraffairs.com.
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