Baby Budget Guide: How Much Does a Baby Really Cost in the First Year?

Babies come with startup costs. In the first year alone, you can expect to spend about $29,000 including child care, or about $16,000 without it. According to LendingTree’s 2026 analysis, raising a child to 18 costs about $303,418, a bare-bones estimate based mostly on 2024 data.

When it comes to growing your family, planning your finances ahead of time will help you in the long run. You can help your family avoid unnecessary debt, manage both expected and unexpected expenses, and grow your wealth for your little one’s future. It can also help you manage your finances around daycare costs, or explore what it would look like for one parent to stay home.

In Monarch, you can see these costs category by category as they happen, track what you’re saving, and plan past the first year.

#How much does a baby cost in the first year?

In short: About $16,000 without child care, and about $29,000 with it.

In long: Baby costs will vary greatly depending on where you live, your insurance premiums, how much you decide to spend on gear, how the baby is fed, and if you rely on child care in the first year. Gear, diapers, formula, and food are Monarch estimates based on typical purchases. Insurance reflects LendingTree’s estimate of added premium costs. While there are options to save, on average, you can expect to pay:

To get an idea of what you’ll need and how much you’ll be spending, here’s a breakdown of how much you’ll expect to spend for your new family member.

Monarch Pro Tip: If you’re not sure where to start, Monarch can guide you through the financial steps to having a baby. Monarch offers customized advice for growing your family under the advice tab, with goals, checklists, and guidance on what to tackle next.

#One-time costs you need to budget for before baby arrives

Babies come with startup costs, as you’ll need to have supplies and services ready to welcome your little one into the world. Here’s a list of what you’ll expect to spend on.

#Medical and delivery costs

According to the Peterson-KFF Health System Tracker, pregnancy, delivery, and postpartum care add an average of $20,416 in health costs for people with employer coverage, including $2,743 out of pocket. A vaginal delivery averages $15,712 ($2,563 out of pocket), while a C-section averages $28,998 ($3,071 out of pocket). While your insurance should cover anything that isn’t out-of-pocket, it’s important to be mindful of the deductible as you approach the delivery date. You may pay more or less depending on if you opt to get an epidural, are induced, or if there are complications with the birth and/or the baby’s health.

Something else to be aware of is that your OBGYN may request a deposit or a prepayment plan in the months leading up to the delivery, with the remainder of the costs being billed after the baby is born. Ask your doctor’s office what their billing practices are, and see if you need to roll the payments into your current budget.

Some of the charges you can expect to see can include:

• OBGYN appointments
• Prenatal testing
• Ultrasounds
• Labor and delivery
• Postpartum care
• NICU care

#Essential baby gear and nursery setup

Don’t know where to start when gearing up for your new arrival? Monarch has a handy list to help you prepare and budget out what you need. Prices will vary depending on the items, area, and your preferences, so be sure to do your research.

If you have a baby registry and/or plan on having a baby shower, it can also be helpful to request this gear. You can buy many of these items, such as strollers, toys, clothes, books, cribs, and other gear, secondhand or get them as hand-me-downs, which can save you a large amount in startup costs. Buy mattresses, car seats, and medical supplies new for hygiene and safety.

While you don’t have to get every item on this list, this will give you a good baseline of supplies you’ll end up using in the first year.

Monarch Pro Tip: Watching your progress makes reaching your savings goals more attainable and keeps you accountable. You can set a Save Up goal for Baby Gear in Monarch, which helps you track your progress and integrate your budget and your savings.

#General nursery supplies

How you set up your nursery is entirely up to you. Many parents like to personalize their nursery by giving it a fresh coat of paint or wallpaper, and adding decor with a theme.

• Wallpaper/paint and decor
• Receiving blankets
• Burp cloths
• Large blanket for tummy time/crawling
• Book and toy shelves
• Rocking/glider chair
• Drawer or dresser set
• Small clothes hangers
• Diaper pail and liners
• Laundry basket
• Storage baskets or boxes
• Totes for storage
• Humidifier
• Monitor set

#For sleep

The American Academy of Pediatrics recommends keeping nothing in the crib but a fitted sheet for your baby’s first year to prevent suffocation, so skip blankets, bumpers, and stuffed toys. Be sure that your crib or bassinet is approved for safe sleep.

• Bassinet (with a bedside option if you want baby close) OR
• A crib with a bassinet attachment
• Infant-safe mattress
• Waterproof mattress liner
• Fitted mattress sheet
• Swaddles
• Pacifiers
• White noise/sound machine

#Clothing

Babies go through clothes quickly, which is why your best bet is to get these items used. Keep in mind that, between spills, stains, blowouts and spit up, you might expect to go through multiple outfits a day, so having a rotation that fits in with your laundry schedule is a good idea.

• Summer clothes
• Winter clothes
• Cold-weather supplies, including hats, gloves, and coats or snowsuits
• Pajamas
• Shoes or comfortable slippers
• Socks
• “Special” outfits for photo sessions, holidays, or special events
• Bathing suit

#Diapers

This is one of the biggest startup and recurring expenses for parents. The Urban Institute puts the average at about $100 a month for one child. Whether you go with cloth or disposable, have your kit ready before the baby comes home for the first time. This includes:

• Diapers (either disposable or cloth)
• Wet wipes
• Diaper rash cream
• Changing table and pad
• Storage/organization set
• Changing pad liners
• Travel changing set
• Diaper bag and supplies

If you plan on using cloth diapers:

• Cloth diaper set
• Diaper linings
• Pins or velcro, if they come separately
• Cleaning service fees OR
• Cleaning supplies, if you’re doing it at home

#Cleaning up

Baby bathing supplies can be a bit more expensive than standard soaps, since they’re formulated for sensitive skin. You should get:

• Baby soap/shampoo
• Baby lotion
• Infant tub
• Wash wipes
• Towels
• Nail clipper set
• A soft hairbrush
• A toothbrush

#Medical supplies

While nobody likes to think about their baby getting sick, it’s important to have these items on hand so you can address, prevent, and diagnose any issues, along with any additional supplies or medications recommended by your pediatrician.

• Infant pain relief/fever reducer
• Gas drops
• Petroleum jelly
• Infant thermometer
• Sunscreen
• Infant electrolyte replacer
• Vitamin D or multivitamin drops
• Bulb syringe

#Postpartum recovery supplies

Recovering after giving birth takes time. These supplies can be helpful to have on hand while mom recovers.

• Nipple pads (if nursing)
• Lanolin cream
• Pads
• Ice packs
• Topical spray
• Postpartum underwear
• Electrolyte fluid
• Maternity/breastfeeding friendly tops and dresses
• Prenatal vitamins
• Food delivery subscription
• House cleaning subscription

#For feeding

Whether you’re breastfeeding, using a pump, using formula, or a combination of the three, you can expect some startup costs when it comes to feeding your baby. Generally, you’ll want to buy these new and not used for health and safety reasons.

• Bottles
• Bottle cleaning supplies
• Breast pump
• Nipple guard (if breastfeeding)
• Breastfeeding support pillow
• Breastfeeding cover
• Formula (if formula feeding)
• Bottle sterilizer

Once baby moves on to solid foods, you’ll want to invest in:

• A sippy cup or bottle
• Feeding spoons
• Infant safe bowls and plates
• Bibs
• A high chair
• Baby food
• Blender (if making your own)
• Storage jars or trays (if making your own)

#Toys

Toys are important for development, as well as keeping your child occupied. Fortunately, there’s a large market for used toys both at consignment stores and online. As your baby grows, the toys they play with will change, meaning you’ll want to update what they play with to keep up with development milestones.

Some good toys to have on hand include:

• Rattles
• Mobile
• Playing mat
• Teething toys
• Blocks
• Stuffed animals
• Age-appropriate books
• Batteries for electronic toys

#For the car

Taking an infant in the car takes special consideration, as they’ll need an approved car seat and restraint system. Beyond that, there are a few other supplies that are good to have on the road.

• Car seat
• Toys
• Car seat pillow/cover set
• Car mirror

Buy a new car seat if you can. If you use a secondhand one, follow NHTSA’s used car seat checklist, and never use a seat that’s been in a moderate or severe crash. If cost is a barrier, ask your hospital or pediatrician what local help is available.

#Carrying baby

Having some extra gear for taking the baby out and about, or for freeing up your hands, can be helpful. This includes:

• Stroller
• Infant swing/vibrator
• Bouncer
• Infant chair with back support
• Wrap or strap-in baby carrier

#Child safety

While you won’t need to baby proof right away, it’s a good idea to have some supplies on hand when your child becomes mobile. This includes:

• Socket covers
• Baby gates
• Door locks
• Cupboard and drawer locks
• Furniture and shelf anchors
• Carbon monoxide detector

#Administrative

Having a baby can come with paperwork. For example, you’ll want to have a certified copy of your child’s birth certificate on hand for insurance registration, passport applications, and as a general backup. The fees you can expect for things like this include:

• Birth certificate copy fees
• Passport fees
• Vaccination record fees

#Miscellaneous

Everyone parents their children differently. You may find these items useful to have on hand, though they aren’t strictly essential.

• Travel crib
• Travel stroller
• Travel high chair
• Wipe warmer
• Diaper disposal system
• “Backup” sheet and mattress protector sets for nighttime accidents
• Formula mixer/feeder
• Backup/replacement pumping parts
• A grocery store delivery or Amazon Prime subscription

#Recurring costs

Once you have your startup costs set, it’s time to take a look at your recurring costs, which will set the rhythm for your budget in the future. Here’s a look at what to expect on a recurring basis. For a month-by-month breakdown, skip ahead to the next section.

Monarch Pro Tip: Track your baby expenses down to the dollar so you know what to plan for. If you’re using a category budget , you can track your category and group for child-related expenses.

#Child care

As mentioned above, child care is one of the heftiest expenses for parents to cover in the first year. While full-time daycare is the most common route, many opt for other options such as relying on part-time day care, a nanny, or other options. Here’s the cost breakdown.

#Daycare

Daycares often come with different prices for infants, since they have a higher required staff-to-infant ratio. Many daycares will have an application fee when you apply, so be sure to check beforehand.

Annual cost for full-time care (40 hours a week): $13,184 national average, often more for infants. Child Care Aware’s 2025 data puts center-based infant care at about $15,000–$15,700.

#Nanny

A nanny is a household employee who will watch one or more of your children. This provides more direct attention for each child, as well as the flexibility of having the nanny come to your house instead of having to transport your baby to a daycare center. Nannies do tend to be on the more expensive side. UrbanSitter’s 2026 data put the average nanny rate at $26.24 an hour (UrbanSitter bases this on the same booking data as its babysitting rates).

Keep in mind that you will also have to set aside payroll taxes, along with unemployment insurance and workers’ compensation, as your nanny will be considered a household employee. Refer to IRS Publication 926 for more details on how much to set aside for household employer taxes and conditions.

A Dependent Care FSA can be used to pay a nanny, which is one of the better uses of the new $7,500 limit.

Annual cost for full-time care: about $55,000 (UrbanSitter’s 2026 average nanny salary)

#Nanny share

An alternative to hiring a nanny for your own household is to participate in a nanny share, where two or more families share one nanny to care for several children. This splits the costs and allows for the benefits of having a nanny. Typically, families will split costs based on the number for children; for example, if three children participate in a nanny share that costs $60,000 per year, then one child’s care would cost $20,000.

Annual cost for full-time care: typically less than a solo nanny; your share depends on how many families split the cost.

#Insurance

While you’re likely already paying for insurance for your family, adding your child will increase your premium. You’ll also have the option to switch your plan upon the birth of your child, which many families use as an opportunity to switch to a lower deductible/higher-coverage plan should medical costs arise.

Either one of the child’s parents can opt to add the child to their insurance, giving you the opportunity to pick and choose if you have different plans.

Depending on your income, your child may qualify for the Children’s Health Insurance Program (CHIP), which covers uninsured kids in families who earn too much for Medicaid but can’t afford private coverage.

#Baby supplies

These supplies will need restocking on a periodic level. If you have a subscription for a delivery or grocery service, you may be able to get a discount if you sign up for regular deliveries.

• Diapers and diapering supplies, like wipes and cream
• Diaper cleaning service (if you’re using one)
• Medicines
• Lotions and soap
• Vitamins

#Feeding

Your feeding costs will vary depending on if you plan on breastfeeding or using formula. As your child grows, they will need more calories, which means your costs could rise. Keep in mind that formula is available through WIC, according to the USDA, so if you’re struggling with the cost, reach out to your local program.

Recurring costs include:

• Formula
• Breastmilk storage bags (if pumping)
• Baby food and/or ingredients

#The 5 biggest expenses worth planning for

Don’t let these costs catch you by surprise.

#1. Child care

Child care is the number one biggest expense that most parents will face in the first year. According to Child Care Aware of America, the national average annual price of child care in 2025 was $13,184. While this number will depend on where you decide to live or if you opt for full or part-time care, it can add up quickly.

Even if you can forecast how much child care will cost in the first year, it may cost you more than just daycare fees. If you decide to hire a babysitter for a night out, UrbanSitter’s 2026 data put babysitters at about $26 an hour for one child. If your daycare unexpectedly closes, you may need to hire someone last-minute. Take these expenses into account when budgeting out your month, and plan ahead so you can manage your financial situation ahead of time.

#2. Lost wages

While technically not an expense, lost wages will impact your budget and reduce the amount of money you have to spend and save. If one parent decides to stay at home with the baby or switch to part time, this results not only in lost wages for the time being, but future potential wages as career progression slows, alongside retirement contributions and other benefits.

The burden of lost wages tends to fall most on women. According to a Bankrate analysis of Census data, full-time working mothers earned 35 percent less in wages than fathers working full-time in 2024. Even if mom isn’t staying at home, you may find that at least one parent may have to cut their hours or take unpaid time off to stay at home with a sick child or to provide child care when the daycare closes.

However your family decides to manage the balance between work and childcare, be sure to factor this into your budget. If you think it’s likely one parent will stay home, budget out not only your month-to-month cash flow and management, but also the long-term impacts to retirement and savings.

Monarch Pro Tip: Keep informed about how your spending will impact your budget ahead of time. Once you’re a few months in, Monarch’s spending reports can surface exactly where your baby costs are running over – down to the dollar – so you can adjust before it compounds.

#3. Medical expenses

Your baby’s health is a high priority. Since infants require special care, medical expenses can rack up quickly, especially if there are complications at birth that require a stint in the NICU. Even run-of-the-mill illnesses like the flu can quickly develop complications that can land your child in the emergency room.

Medical expenses don’t have to come from the emergency room, either. Your baby may require special care for walking therapy, feeding therapy, or a head shape corrector, which may not be covered entirely by your insurance. As well, medical care for the mother, such as postpartum care or a visit with a lactation consultant, can incur additional costs.

When reviewing your insurance, be sure to look at what’s covered and how much your deductible and out-of-pocket maximum is. If your plan is high-deductible or catastrophic, add the extra month the emergency fund guide calls for, and use a health savings account (HSA) or flexible savings account (FSA) for the deductible if you are eligible.

Monarch Pro Tip: Track your debts and balances so you never miss a payment. If you have a hospital balance that you’re paying down over time, or medical debt, you can set a Pay Down goal in Monarch to track your progress.

#4. Housing

Housing costs tend to rise right before or after many parents have their first child, as they opt to rent a bigger space or buy a house in order to settle down.

According to the U.S. Department of Agriculture, based on its most recent (2015) data, housing is the largest share of child-rearing costs, about 29% for middle-income, married-couple families. This is compounded by the fact that you may choose to move to a pricier area to be closer to family, to have access to a better school system, or to be near amenities such as parks and children’s activities.

When shopping for a house or an apartment, consider how much space you’ll need (both inside and in the yard), how close you are to your support systems, and if you’ll want to stay in the area for the next five years. While babies don’t need much space to start, as they grow, their and your housing needs will change, especially if you decide to have more children.

#5. Emergency purchases

Kids are unpredictable, and babies can really throw first-time parents for a loop. You may find yourself making a few unexpected purchases , such as rush-ordering a new sound machine when your old one breaks, renting a vibrating bassinet when baby won’t sleep through the night, ordering takeout for a week straight because you’re too tired to cook, or buying formula or pumping supplies because breastfeeding isn’t working out.

Giving yourself some wiggle room with these sorts of expenses is essential, as it can take the stress out of wondering if you’ll have enough money to cover both your child’s needs and the household needs. As such, it’s a good idea, on top of your standard emergency fund, to add an extra $100–$300 per month to your budget to account for unexpected expenses. Set this amount to roll over in Monarch, and whatever you don’t spend one month carries into the next, so a $150 month and a $450 month both have a cushion. That keeps your finances flexible.

#Building a baby budget for the year

Want to know exactly how your new baby will cost you? Here’s a month-by-month breakdown of what you can expect to spend, and how you can plan it out. Note that these are approximations based on average costs, with a bit of buffer room added in. Your experience may vary depending on your lifestyle, area of living, and individual choices.

#Month 1

The first month comes with the most startup costs, between labor, delivery, and purchasing any last-minute gear that you may need. This also assumes you’ll need child care for the first month.

#Month 2

#Month 3

By the time your baby is three months old, they may be ready for an upgrade to three-month clothes, though this will depend on their size and weight.

#Month 4

Month four brings an important milestone: Introducing solids. You don’t need to buy out the entire baby food aisle, but your pediatrician will probably recommend starting to introduce purees in small increments. You can opt for store-bought, or, if you want to save some money, make your own. Your little one will still depend on milk or formula for most of their needs.

Your baby may begin teething at this point. Not only does this mean a lot of drool, but your little one will also feel discomfort and swelling in their gums. You can remedy this with freezable teething toys, topical, baby-safe numbing gel, or pain reliever like infant ibuprofen or acetaminophen.

#Month 5

As your child approaches six months, it may be time to switch from a bassinet to a crib, as they may start to sit up on their own and approach the weight limit.

#Month 6

Month six is a big one, with another clothing upgrade and a developmental leap. Your baby will want more toys with sensory experiences including touch and sound, and books they can safely flip through.

Finally, your baby may be starting to crawl and become more mobile. This means you’ll want to start childproofing your home if you haven’t done so, including putting gates on stairways, covers on sockets, and locks on drawers and cabinets. You’ll also want to upgrade their wardrobe to account both for their newfound mobility and their growing size, and to buy more food as they expand their palate and burn more energy.

#Month 7

#Month 8

#Month 9

Your little one may be making moves toward their first steps. This is a good time to upgrade your childproofing setup, and invest in a walker or other walking-friendly toys. As well, it may be time for another clothing upgrade.

#Month 10

#Month 11

#Month 12

As your child approaches their first birthday, not only is it time for another clothing upgrade, but you’ll also start approaching weaning them entirely from formula or milk. Your child care costs will also change after the first year, since your child will move from the infant to the toddler room.

While you don’t have to strictly keep to this budget, it can give you a helpful outline in terms of how you budget your little one’s expenses and what to account for.

Monarch Pro Tip: After a few months, Monarch’s spending reports will show your actual baby cost average per category, which helps you recalibrate as needs shift month to month. Monarch can generate reports based on your monthly spending and tell you what your averages are for each of your categories . Invite your partner to your Monarch household so you both see the same baby categories and averages, without passing receipts back and forth.

#Long-term financial moves every new parent should make

Making these moves now pays off over the long run for you and your child. Prioritize these moves in order of the list; for example, if you don’t have an emergency fund in place, you’ll want to save the minimum amount before you start contributing to the 529.

• Have an emergency fund in place. An emergency fund is a vital lifeline when you’re facing an unexpected expense. At minimum, set aside a baseline of one month of take-home pay or $2,500, whichever is higher. Then build the full fund in months of essential expenses, adding up your household’s risk factors: two months because you depend on earned income, one more for the new dependent, one if either of you is self-employed, half a month for a home and half for pets, and one if your health coverage is thin. Most new parents land between four and seven months. Be sure to update your monthly essential-expense calculation to account for the new baby; the emergency fund guide has the full method.
• Sign up for long-term disability insurance. This will help support your family if you are no longer able to work due to disability.
• Review your will and estate plan . Ensure that not only your child is named a beneficiary of your estate, but that you have legal guardians set in place in the event both parents pass away.
• Get term life insurance. Make sure your life insurance plan will cover for the expenses of your child and other beneficiaries, along with any debt that would not be forgiven at death (like a mortgage) and offset any planned assets. Make sure to list your surviving spouse or partner, or the planned guardian of the child, as a beneficiary.
• Take advantage of a Health Savings Account. A health savings account is a tax-advantaged way to save for approved medical supplies, including children’s medicine.
• See if your workplace has a Dependent Care Flexible Spending Account. An FSA allows you to save part of your pre-tax income to pay for child care.
• Start saving for your child’s education. An education savings plan like a 529 is a tax-advantaged way to save and invest for your child’s education. The earlier you start, the better.

Monarch Pro Tip: Link all your accounts in Monarch to see your emergency fund, HSA, and 529 balances in one place, so you always know where you stand.

#Taxes and benefits

There are a range of benefits available to families with children, from tax-advantaged savings accounts, to tax credits, to benefit programs. Here’s a quick overview of what’s available.

#Tax credits and deductions

The government incentivizes family growth by offering tax breaks for kids. These include:

• For tax year 2026, the Child Tax Credit is worth up to $2,200 per qualifying child under 17, according to 2026 IRS figures. Under the IRS Child Tax Credit rules, the full credit is generally available up to $400,000 of income for married couples filing jointly ($200,000 for other filers). Up to $1,700 per child is refundable as the Additional Child Tax Credit.
• For 2026, the IRS says the Child and Dependent Care Credit lets you claim up to 50% of qualifying child care costs, falling to 20% at higher incomes. Eligible expenses are capped at $3,000 for one child or $6,000 for two or more, so the credit tops out at $1,500 or $3,000.
• The Earned Income Tax Credit (EITC), worth up to $8,231 in 2026 for families with three or more children, according to the IRS 2026 inflation adjustments. For that family size, it phases out completely at $70,224 for joint filers ($62,974 for other filers). Smaller credits are available with one or two children.
• State tax credits and breaks, which vary depending on where you live.

To claim the Child Tax Credit, your child must be under 17, claimed as your dependent, and live with you more than half the year, per the IRS.

#Tax-advantaged savings accounts

These accounts allow you to save your pre-tax income, which reduces your taxable income and effective tax rate.

#Educational savings accounts

There are a variety of savings accounts available for saving for your child’s education. The most popular ones include:

• A 529 is a tax-advantaged savings account that invests the funds you deposit in a set portfolio, allowing funds to grow over time, with no caps on contributions.
• Coverdell Education Savings (ESA) accounts work similarly to 529s, but are only available for households making below $190,000 MAGI for joint filers and $95,000 for single filers, with a $2,000 annual cap per beneficiary.
• Roth IRAs, while not strictly a college savings account, can be used to save after-tax income for a child’s future, and contributions can be withdrawn at any time without tax or penalty after the age of 59½.

Anyone can contribute to a college savings account, making it a useful option for birthdays and gift-giving occasions. The earlier you invest, the better, as it gives your money more time to grow. If your child chooses not to go to college, most account types can be cashed out, transferred to a sibling, or converted to a non-education savings account.

Monarch Pro Tip: Check out our Education Savings Guide for a more in-depth look at how to save for your child’s future.

#Dependent care flexible spending account

Dependent Care Flexible Spending Account is a tax-advantaged savings account that can be used to compensate child care providers, including daycares, nannies, babysitters, and even family helping out with child care.

Typically, it’s only available through your workplace as an employee perk, if your workplace chooses to provide one. You contribute from your pre-tax income and withdraw from it by filing a claim with your workplace’s FSA provider. Starting in 2026, the IRS limit is $7,500 ($3,750 if married filing separately) per household. These funds are also use-it-or-lose-it, meaning that you have to use the funds for expenses incurred during the enrollment year. If those funds aren’t withdrawn by the deadline (typically a few months after the enrollment year end, depending on your employer), they are forfeited.

Check your employer’s plan, and note that FSA dollars reduce the expenses you can count toward the Child and Dependent Care Credit.

#Assistance programs

If you’re struggling with managing costs for diapers, formula, child care, or other necessities, these programs exist to help you and your family.

• Women, Infant, Children programs provide nutritional support in the form of formula, baby food, breastfeeding support, and other goods and services.
• Temporary Assistance for Needy Families (TANF) provides cash assistance and job support for eligible low-income families.
• The Children’s Health Insurance Program (CHIP) covers uninsured children in families with incomes too high for Medicaid but too low to afford private coverage, according to Medicaid.gov. Income limits vary by state.
• Early Head Start provides education and support services to pregnant women, infants and toddlers.
• Supplemental Nutrition Assistance (SNAP) benefits, which can help cover groceries, are available to eligible families, with benefits being based on family size.
• Section 8 housing benefits subsidize rent for eligible low-income families.
• State and local child care assistance programs that can offer subsidized rates for child care.

#Plan your baby budget with confidence

Taking action on your family’s finances will pay off over your child’s lifetime. In Monarch, you can set up baby categories to track what you actually spend, create a Save Up goal for baby gear, and use rollover categories to cover irregular costs. As your family’s needs change, you can adjust your budget and project your long-term cash flow and net worth growth.

You can also see your 529 balances next to your other accounts, so you can track your child’s education savings alongside everything else. Try Monarch for free

#FAQs

How much does a baby cost per month?
With child care, a new baby costs about $1,400–$1,600 a month after the first month. Without child care, plan on about $275–$490 a month, depending on whether you use formula, the cost of your favorite diaper brand, your area of living, and other factors.

How much should I save before having a baby?
Based on the estimates above, startup gear and delivery costs come to about $8,500, not including child care. It’s a good idea to budget out what baby gear you plan to get, how much you’re willing to spend and how much labor and delivery costs will be. As well, be sure to have your emergency fund in place: a $2,500 or one-month baseline at minimum, and ideally the full fund sized to your household’s risks (adding a dependent adds a month to the target).

Is $1,000 a month enough for a baby?
It depends. Child care alone averages about $1,099 a month nationally, and infant care often costs more. That’s on top of costs for formula, diapers, and incidental expenses. You may be able to manage $1,000 a month if one parent stays home, you rely on child care part-time, or if you qualify for assistance.

What is the biggest expense when having a baby?
For most families, child care is the largest expense, costing about $1,100 a month on average nationally, and more for infant care.

When should I start financially preparing for a baby?
That will depend on your individual family. If you’re planning with a partner, it helps to budget as a couple as soon as you start trying to get pregnant. The earlier you save, the better off you’ll be.

What are the hidden costs of having a baby?
Child care, medical expenses, and unexpected extra costs are some of the biggest unexpected costs of having a baby. Be sure to add a buffer into your budget.

How much does it cost to raise a child to 18?
About $303,418, according to LendingTree’s 2026 analysis, a bare-bones estimate based mostly on 2024 data. USDA’s last estimate was $233,610 for a child born in 2015 (in 2015 dollars, through age 17). The first year is only a small slice of that, so the habits you set now carry forward.