Starting a family? Remember to budget for these 4 expenses

The birth itself

After bringing your baby into the world, you may be surprised when you receive a hospital bill before they’ve even taken their first bath. Maternity care, the cost of delivery, postnatal care—it all adds up. One study found the average cost of giving birth, even after insurance, is $4,569.^{Disclosure 1} One way to make these costs more affordable is by saving in advance with a Health Savings Account (HSA), which you typically open through your employer. HSA contributions are tax-free—and so are the interest gains. With planning, you can start saving in an HSA long before the hospital stay. 

Lots of formula and food

If your baby drinks formula and has an allergy or sensitive tummy, or was born premature, you may need to purchase specialized formula for their unique needs. Some of the most expensive formulas run about $40 a can, which may only last 3-4 days (compared to around $10 for a can of generic, nonspecialized formula). Once baby starts eating food (around 4-6 months old), you may notice your grocery bill increasing because of purees, teething biscuits, and eventually, chicken nuggets. As your child grows, a membership to a wholesale store could help you save some extra bucks by allowing you to buy some items in bulk. 

Baby-proofing your house

As your little one grows and starts making moves, you will need to put in some household safety features. Cabinet locks, doorknob covers, baby gates, even pool safety fences—it may seem basic, but you shouldn’t skimp on babyproofing! If you have an infant car seat, you’ll also need to upgrade to a convertible car seat once they’ve outgrown the size limit of their infant seat, which could happen within their first year.^{Disclosure 2}

Someone to watch them when you can’t

If you plan to go back to work once your parental leave ends, you’ll likely need to pay for child care. According to Care.com, in 2020 more than half of families (57%) spent over $10,000 on child care; the average cost for one child in day care was $340 per week. ^{Disclosure 3} Date night coming up? Expect to pay about $17 per hour for your babysitter.^{Disclosure 4} (Got to stay sane somehow, right?)