First-Year Baby Budget — What It Really Costs in 2026

The first year with a baby is financially intense. Between child care, diapers, formula (if used), healthcare, and all the gear, most families spend $15,000–$25,000 in year one — though the range widens dramatically based on child care choices and insurance coverage.

Plan your family's budget with the Child Care Cost Calculator.

First-Year Cost Breakdown

Category	Low Estimate	Mid Estimate	High Estimate
Child care (6 months after leave)	$0 (family)	$6,250	$10,000
Diapers + wipes	$600	$900	$1,200
Formula (if not breastfeeding)	$0	$1,500	$2,500
Healthcare (copays, medications)	$500	$1,500	$3,000
Gear (crib, stroller, car seat, etc.)	$1,000	$2,500	$5,000
Clothing	$300	$600	$1,200
Food (solids from 6 months)	$200	$500	$800
Miscellaneous (toys, books, photos)	$200	$500	$1,000
Total	$2,800	$14,250	$24,700

The single biggest variable is child care. A family with a stay-at-home parent or free family care can spend under $5,000 total. A family using full-time center-based care in a high-cost city could hit $30,000+.

Month-by-Month Timeline

Month	Major Expenses	Budget Tip
Before birth	Hospital bag, nursery setup, car seat	Buy used for non-safety items
Month 1–2	Diapers, formula, pediatrician visits	Stock up during sales before due date
Month 3–4	Return to work → child care starts	Start FSA enrollment at open enrollment
Month 5–6	Solid food supplies, high chair	Make purees at home to save $50+/month
Month 7–9	Larger clothing sizes, baby-proofing	Accept hand-me-downs liberally
Month 10–12	More gear (convertible car seat, shoes)	Buy end-of-season clearance for next size

What Insurance Covers (and Doesn't)

Covered	Typically Not Covered
Well-baby visits (no copay under ACA)	Specialty formula
Immunizations	Over-the-counter medications
Hearing/vision screenings	Lactation consultant (varies)
Hospitalization	Nursery décor

Adding a baby to your health insurance plan increases premiums by $150–$400/month on average. A qualifying life event (birth) gives you 30–60 days to update your plan.

Smart Savings Strategies

Strategy	Annual Savings
Buy diapers in bulk (subscribe & save)	$200–$400
Accept hand-me-down clothing and gear	$500–$2,000
Breastfeed (if possible) vs formula	$1,500–$2,500
Use Dependent Care FSA for child care	$1,000–$2,000 in tax savings
Apply for WIC (income-qualifying)	$50–$75/month in food benefits
Buy gear secondhand (except car seat)	$500–$1,500

For child care costs specifically, see Child Care Cost by State. For tax savings, read Child Care Tax Breaks. And for pregnancy and delivery costs, check Cost of Having a Baby.