- The first-year cost of raising a child has increased to $20,384 from $15,775 in 2022.
- Baby-related expenses account for about 31% of parents' total income on average.
- There are tips to save money on expenses that first year.
Your bundle of joy costs an actual bundle in the first year, according to the annual reckoning by BabyCenter, which surveys parents to calculate the cost of a curated list of newborn-related expenses, from nursery supplies to food and clothing and even a small contribution to a college fund.
If parents purchase everything on the list — and what’s needed does vary by a family’s circumstances — that first year price tag is $20,384, which doesn’t include the cost of giving birth.
That first-year cost is up from $15,775 in 2022, the year the center, a digital parenting resource, first started looking at the issue. The survey and cost analysis were spurred at the time by rising inflation, Dominique De Lope, senior manager of research insights, told Deseret News.
“Baby-related costs take up about 31% of parents' total income and it’s stressing families out,” the new report said. “Nearly 9 in 10 moms say finances impact their mental health.” And a quarter of those surveyed consequently have downsized their planned families.
“While we’ve known anecdotally we’re all feeling the financial pinch these days, seeing the numbers in black and white was truly eye-opening,” said De Lope. “It was shocking to see just how much finances impact mom’s mental well-being, especially as rising costs remain an ongoing concern for U.S. families.”
She added that BabyCenter has global websites, online communities and mobile apps in seven languages that provide baby-related resources to millions of expectant parents worldwide. Everyday Health Group Pregnancy & Parenting, which includes the BabyCenter, is a division of Everyday Health Group, also home to the What to Expect brand.
Adding it all up
Parents reported in the survey that the baby-related expenses take up about a third of their total income, on average. For about 1 in 7, it’s closer to half.
“In another BabyCenter poll exploring moms’ top financial concerns, pregnant women share that they are most concerned about housing expenses, rising costs due to inflation, and preparing for the new costs of a baby. Infant moms add saving for an emergency fund as a top financial concern,” the report said.
Not everyone needs everything on the list, which is based on national average costs. Folks can get a better idea of their own costs using the BabyCenter First-Year Baby Costs Calculator. “If you know how much your day care will cost or that you won’t buy the crib yourself (Thanks, Grandma!), you can change the numbers to match,” the report said.
But the list was created by surveying parents to see what they used that first year. And whether everyone uses the same items or not, the change from 2022 to now shows how much prices have risen recently.
Among “common expenses for baby’s first year,” based on the center’s list:
- Child care, $10,107 for nine months at average national cost for parents who use it regularly
- Feeding, $3,535, includes both solid food and formula, which two-thirds of moms use at some point
- Nursery, $1,352
- Diapering, $1,032
- Gear like stroller and car seat, $956
- Saving toward the future or college, $900
- Clothing, $816
- Activity equipment such as bouncer and play mat, $591
- Breastfeeding, $424
- Bathing and grooming, $230
- Health and safety, $153
- Toiletries, $144
- Toys, $144
De Lope admits that the list makes some assumptions, including that new parents will immediately start a college fund.
“While we don’t have statistics available on how many parents start saving for college during their baby’s first year, we know that experts universally recommend starting as soon as your baby is born, if not sooner. We also have a highly engaged BabyCenter community, and parents regularly ask questions there about 529s and other ways to save for baby’s future, so we know this is something that parents would like to plan and budget for.”
De Lope said if parents save the $75 a month used in the calculation, that would provide $16,200 by the time their baby turns 18 — and potentially more if they invest these funds or use a high-interest savings account. “This amount won’t cover the cost of tuition for a four-year college, but would provide some funds to help a child pursue their dreams,” she said.
Money-saving tips
The report notes some key ways that parents can bring the costs down. Leah Rocketto, associate commerce director for the BabyCenter, suggests:
Shop last year’s models of common gear. Rocketto also points out that every car seat sold in the U.S. meets the same safety standards, “so a cheap one is just as safe as an expensive one.”
Buy some items second-hand, which she deems safest for clothing and toys. But do check recall notices, she added. And consider buying “important safety gear — like car seats, cribs and mattresses — new, if possible."
Explore ways to save on child care. That’s “far and away the biggest line item,” per the report. “Check out co-ops, nanny shares, the child tax credit, dependent care flexible spending accounts, employee assistance programs and other hacks that can shave off some of the expense.”
About the survey
The survey was conducted between Jan. 17 and Feb. 3 among 1,399 moms with at least one child younger than 8. BabyCenter also used results from the 2024 Baby Registry Trends Survey of 4,325 women who were pregnant or had a baby younger than 6 months old to help create the list of items often purchased for baby’s first year.
For prices, the survey used popular products within the BabyCenter community, many of them reader’s choice awards, then averaged the current retail price from three major stores to assign a price.
Asked if the survey is nationally representative, De Lope responded: “Our survey results align closely to population demographics. For this specific study, we are slightly underrepresented in Hispanic respondents (16%) and slightly overrepresenting African American respondents (20%) — both are within 5% of target. In other demos (age, region, etc.) we are consistent with census."