Guides / Before baby
Budget for your baby's first year
Split costs into one-time, monthly and "maybe", then save ahead.
The first year with a baby costs less than the internet suggests if you plan for it in three parts: the one-time things, the monthly things, and the things that may or may not happen. Most of the stress comes from the monthly costs nobody added up.
Three kinds of cost
- One-time: the birth bill, a car seat, a safe place to sleep, a few basics
- Monthly: diapers and wipes, feeding, clothes as they grow, and childcare if you need it
- Maybe: lost income during leave, a breast pump or bottles, a second car seat, a bigger car
Build the plan
- Use our first-year cost calculator with your own numbers
- Divide the one-time costs by the months until your due date: that's what to set aside each month
- Add the monthly baby costs to your normal budget and see what has to give
- Plan for leave months separately if your income will drop
Keep a small baby buffer
Aim for a buffer of one month's baby costs on top of your normal emergency fund. Babies arrive with surprises: an extra pack of the diapers that actually fit, a bottle the baby will accept, a co-pay you didn't expect.
General educational information. Costs and rules vary by state, plan and family. Family Penny Saver isn't paid by any brand, store or insurer.