What a Baby Costs in Their First Year in 2025

Whether you find out you’re expecting or you get a call from your adoption agency, your first response to welcoming a child is probably an instant rush of emotions. That is likely to be followed by a dawning realization of how much needs to be done—and spent—before the baby comes home. According to analysis by LendingTree, an online lending marketplace, it currently can cost nearly $300,000 to raise a child from infant to age 18.

The value and joy of parenthood outweigh any monetary expense, but numbers that large can still be intimidating. The number one piece of advice for new parents is not to panic about finances. When you break the costs down, the expenses are more manageable and can be planned for ahead of time.

Let’s look at what you can expect to spend in the first year of your child’s life, if you were to buy everything brand-new yourself. Any baby shower or welcome home gifts are happy budget bonuses. Also, shopping for baby supplies at places like mommy markets or thrift stores can help minimize your expenses by a significant amount. The only items recommended to buy new are a car seat and possibly a crib, for safety reasons.

Welcoming Your Baby into the World

If you’re pregnant, the medical costs of having a child and the resulting hospital stay will be one of the first (and most significant) expenses.

According to the Health Care Cost Institute (HCCI), the average cost of an uncomplicated normal birth for a family with employer-provided insurance in 2025 is around $20,500, with around $2,700 being paid out of pocket. These numbers are from the Peterson-KFF Health System Tracker.

With complications, the cost can quickly rise. Outside of delivery care and the hospital stay, don’t forget about the time you’ll need off work. If you’ll be taking unpaid leave, that increases costs for as long as you aren’t working.

How much having a baby will cost you also depends on your insurance coverage. If you use in-network providers for your pregnancy and birthing services, most of these plans will cover all relevant costs, minus your copays. Using out-of-network providers will increase your costs, and your insurance may not reimburse you for their portion until well after your baby is born. If an out-of-network provider wants you to pay upfront, ask them about payment plans or options.

If you are uninsured, look for free or low-cost options through local health and hospital clinics, such as indemnity insurance. Indemnity insurance covers only a portion of the hospital expenses during childbirth (no prenatal or postnatal care beyond that), but it can act as a standalone or supplemental option to help reduce costs. You may also be eligible for insurance programs through your state or the federal government that help cover many pregnancy and childbirth expenses, such as Medicaid or Children’s Health Insurance Program (CHIP).

Bringing Your Baby Home

Buying certain baby essentials in advance is a must, so that you’ll have everything you need when you bring your baby home. However, this also means you must prepare for that expense.  Plan to spend a minimum of roughly $1,200 on these first necessities.

Crib

A decent crib will cost around $200 and up. Because children often use cribs for at least a year, read product reviews and try to get one that’s durable (and safe). You’ll also need a few crib sheets. Depending on the type of crib you purchase, you may also need to buy a mattress, which can cost anywhere from $100 to $300.

Stroller

A basic stroller of modest quality costs $200 and up. Similar to cribs, strollers will be used for a few years. Look for models that accommodate a growing child and have positive reviews.

Rocking or Gliding Chair

A rocking chair can soothe your child as you feed them or get them to sleep, making both of you more comfortable. It can also be practical as your child ages, as they can sit in your lap to play or read stories and eventually use it on their own. Plan to spend $150 or more on a high-quality chair, with custom and upholstered models costing more.

Car Seat

A decent car seat will run you around $150 and up. Your best bet is to purchase a convertible car seat, which is both forward and rear-facing, and can be used for up to 5+ years. With this option, you’ll minimize expenses later on.

Clothing

While you won’t need a whole closet of baby clothes at first, you will need a few essentials. Because babies tend to be messy, having multiple pieces of clothing will come in handy. Aim for at least four onesies, four pairs of socks, three casual and one fancy outfit, two pairs of no-scratch mittens, three pajama sets, one coat, a seasonally appropriate hat, and a few blankets ranging in weight and warmth. Expect to spend roughly $100 at first, then at least $50 a month as your baby grows and seasons change. Look for baby clothing resellers and swap clothing with friends who also have small children to save money.

Bassinet

If you’re getting a crib, you may not need a bassinet, but it does offer conveniences like portability and small size, making it easy to move and keep in different rooms of the house as your child sleeps. Some parents use only a bassinet (or a cradle) for the first months of their baby’s life. Bassinets start at around $100. Your child will likely outgrow a bassinet when they are 6 months old, so effectively manage your budget by staying in a modest price range for this expense.

Diapers & Wipes

On average, disposable diapers and wipes will cost at least $75 a month. Many expectant parents stock up on diapers before the baby arrives, but this isn’t always advisable. Your baby may not fit into the diapers you buy or may outgrow them rapidly, and babies with sensitive skin may prefer a specific brand, leading to wasted boxes.

Cloth diapers are another option, and they often offer cost savings. Expect to spend around $150 on cloth diapers upfront, then roughly an additional $35 a month on water and electricity, due to the extra washing involved. This cost can vary according to water rates in your area.

Diaper Bag

You’ll need a durable diaper bag for going out with the baby, and decent ones start at around $50. Having a nice one can be a lifesaver when you’re a busy parent, and you’ll likely use it for the first two years of your baby’s life. If your budget has room, it can be worth it to spend a little more for one that will last. It should have ample room for diapers, wipes, clothes, bottles, toys, medicines, and any other necessities.

Baby Monitor

A basic audio-only baby monitor can cost roughly $30, with the price increasing to $50 or more for ones that have features like a video feed. Baby monitors are another item you’ll use for a year or more, so it may be worthwhile to invest in one of high quality or that’s covered by a warranty.

Bathing Supplies

You’ll need a baby bathtub and hygiene products like shampoo, soap, lotion, soft towels, and a hairbrush for your baby. These items can be bought in bundles for more efficient shopping, but still expect to spend at least $50 when all is said and done. Replenishing bathing supplies can cost $20 or so every month.

Feeding Supplies

If you’re breastfeeding, you may need a breast pump, soothing lotion, and nipple pads. Expect to spend at least $100 for a reliable electric pump. A pump can be covered by your health insurance, though you may need to pay out of pocket to upgrade.

If you’re feeding formula, expect to spend $100 and up on formula each month. Whether breastfeeding or formula feeding, you’ll also need bottles, nipples, bottle brushes, and perhaps a bottle warmer, the latter of which can cost around $50 on its own. When starting out, you’ll likely spend close to $200 on feeding supplies.

After six months, your baby can start eating baby food, and around seven or eight months, they can begin trying solid foods. Baby food and solid foods can increase costs by another $50 per month, but they’ll still get most of their nutrition from formula or breastmilk.

Health Supplies

You’ll probably spend at least another $50 to $75 on basic health supplies. These items include a baby first aid kit, thermometer, nail clippers, tool for clearing baby’s nose, teething toys, pacifiers, and diaper cream. You may also need any over-the-counter medications your obstetrician or pediatrician has approved for treating conditions like colic, gas, and teething.

Growing at Home

As your baby grows throughout their first year of life, you’ll need more supplies to keep them comfortable, safe, and happy. Here are some items, and estimates of their costs, to add to your shopping list as your baby grows in their first year.

•  High Chair – a basic model will cost roughly $100
•  Swing or Bouncer – a bouncer costs around $75, while a swing typically costs around $100
•  Play Yard – a decent, portable playpen will cost around $100
•  Dresser – a quality dresser to store your child’s clothes will cost around $200
•  Babyproofing Supplies – these items can cost $200 or more, depending on the amount you’ll need to purchase to cover and protect your home

Other Expenses to Consider

 Some expenses you’ll need to consider beyond the items listed above include childcare and healthcare.

Childcare

Going out to relax or have fun without your child may be difficult at first, but it can provide a much-needed break that benefits your mental health and allows you to recharge.

If your family is unable to help with babysitting, hire a babysitter you trust. Childcare agencies can connect you with vetted, experienced sitters, with rates starting around $15 or $20 per hour.

If you go back to work, you’ll also need to invest in daycare center services. While prices differ based on the area (or state) and the facility, the average cost for infant childcare in the U.S. is around $1,200 and up per month, per Care.com. When your child nears 1 year old, some daycares may consider them a toddler and decrease that cost.

To save on these costs, rely on trusted family members when possible.

Healthcare

The initial cost of giving birth isn’t the only healthcare expenditure to consider. Your child will need their own health insurance. Depending on your insurance plan and provider, adding them may require a plan change, may increase your premiums, or may not affect your insurance plan or costs. If you aren’t insured, you can enroll your baby in their own plan for similar rates, or they may qualify for CHIP coverage at a low cost.

Healthcare costs for newborns can quickly add up, so insuring your child is a must. In their first year of life, they’ll have at least seven doctor appointments to check on their growth and well-being: the first within a week of being home and then at 1, 2, 4, 6, 9, and 12 months of age. With insurance, you’ll only pay copays and anything your plan doesn’t cover fully. Without insurance, the appointment fees alone can easily be $600, not including any tests or vaccines. That cost increases if your child gets sick at all in their first year.

Additional Costs

There may be some costs that you’ll come to realize as necessities as you grow your family. Perhaps it’s needing a larger and more reliable car, or a bigger home for you and your family. No matter your needs, American Heritage is here for you. We’re proud to offer auto loans with low rates and flexible terms, as well as home equity line of credit solutions and mortgages through our comprehensive My CU Home Connection™ Program.

You're Not Alone

In total, parents are spending nearly $20,000 in the first year of their child’s life, not including birth expenses, according to BabyCenter. Parenting is one of the most challenging journeys you can embark on, not least of all because of the financial aspects. However, it’s also one of the most rewarding, making any costs worth it. With time to plan and save for expenses, you can build a great life for your family. Even if your budget is tight, nothing is more valuable to your child than your love and attention, which cost nothing to give.