Top Baby Costs and How to Save on Gear

Discover the top baby costs parents face, and learn how to save some money.

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  By: Tali Ditye, Ph.D., Co-founder

  Updated: October 15, 2025

Mommyhood101 independently tests and curates baby gear to help you make informed decisions. If you buy products through links on our site, we may earn a commission.

Babies bring endless love, laughter, and plenty of new expenses. Hospital bills, childcare, formula, and diapers add up quickly, surprising unprepared parents.

On average, U.S. families spend between $9,000 and $23,000 per year raising a baby.

The exact amount depends on your location, income, lifestyle, and whether you use childcare.

Fortunately, with smart planning and creative saving strategies, it’s possible to give your baby the best while keeping your budget in check.

We break down some of the most common big baby costs, and provide some practical tips for saving cash while also pampering your little one.

1. Cost of Childbirth and Healthcare

Average cost: $18,000 with insurance; up to $50,000 without insurance

Giving birth in the U.S. can be expensive. According to the Health Care Cost Institute, the average total cost of pregnancy, delivery, and postpartum care for families with employer-sponsored insurance is around $18,865, with about $2,800 paid out-of-pocket.

A hospital stay in the NICU can add thousands more per day.

Costs vary depending on your state, your insurance plan, and the type of delivery. For example, the surgery accompanying C-sections typically costs about 70% more than vaginal births.

How to save on childbirth and healthcare

• Review your insurance early: Ask about deductibles, copays, and maternity coverage by your third trimester.
• Compare providers: Some hospitals and birthing centers offer lower bundled rates for prenatal and delivery care.
• Consider midwifery: If your pregnancy is low-risk, midwife-assisted hospital births often cost less than physician-led ones.
• Check Medicaid eligibility: Many states provide pregnancy coverage with minimal or no out-of-pocket costs.

2. Formula Feeding Costs

Average cost: $100–$200 per month

If you formula-feed exclusively, expect to spend about $1,200–$2,400 annually on powdered formula. Specialty formulas, premium organic baby formulas, or ready-to-feed brands can push that number even higher.

Costs typically decline after 6 months when babies begin solid foods.

How to save on formula

• Breastfeed if possible: Even partial breastfeeding can significantly reduce formula expenses.
• Choose powdered formula: It’s the most affordable type and just as nutritious as liquid or ready-to-feed.
• Try generic brands: Store-brand formulas meet the same FDA standards as name brands but cost 20–40% less.
• Buy in bulk: Purchase formula through warehouse clubs or online retailers offering discounts.
  • One of our favorite shops is Organic Life Start, which offers bulk purchases of premium baby formulas to bring down the costs.
• Join rewards programs: Sign up for manufacturer coupons or sample programs from brands like Similac and Enfamil.

3. Diaper Costs

Average cost: $70–$80 per month (~$1,000 per year)

Babies go through about 2,500–3,000 diapers in their first year. Prices depend on size, brand, and where you shop.

The average cost per diaper is about 30 cents, though inflation and supply chain fluctuations can push that higher or lower.

Premium brands, like Hello Bello, Honest Company, and Millie Moon tend to be more expensive (around 40-50 cents per diaper).

Discount brands, like Luvs and Mama Bear, tend to be less (around 25-30 cents per diaper).

You can check our curated list of the best baby diapers here.

How to save on diapers

• Buy in bulk: Warehouse stores and subscription services often have better per-diaper pricing.
• Use coupons and sales: Sign up with major diaper brands or check deal apps for savings.
• Try cloth diapers: Although the upfront cost is higher, reusable cloth diapers can save hundreds per year.
  • You can check our list of the best cloth diapers here.
• Size up when appropriate: Fewer changes per day as babies grow means longer-lasting boxes.

4. Childcare Costs

Average cost: $1,000–$2,000 per month (daycare); $2,500–$3,000 (nanny care)

Childcare is often the single largest expense in a baby’s first year.

Prices depend heavily on region, location, provider type, and schedule.

In major metro areas, full-time daycare can easily exceed $2,000 per month, while in-home options may cost half that.

How to save on childcare

• Share care: A nanny share or cooperative daycare can reduce costs by 30–50%.
• Ask family for help: Grandparents or relatives may be able to provide part-time care.
• Adjust work schedules: Flexible or staggered hours between parents can reduce the need for full-time care.
• Use tax benefits: Contribute to a Dependent Care FSA to pay for childcare pre-tax.

5. Baby Gear Costs

Average cost: $1,500–$2,500 (first year)

Essential gear includes a crib, stroller, car seat, baby monitor, and feeding supplies. Prices vary dramatically depending on brand and features.

For example, a high-end luxury stroller can cost over $1,000, while reliable budget models run under $300.

How to save on baby gear

• Register wisely: Add big-ticket essentials to your baby registry so friends and family can contribute.
• Buy used (safely): Accept hand-me-downs or purchase secondhand for items like swings or bassinets, just verify they meet current safety standards.
• Skip extras: You can safely wait on nonessential gear like wipe warmers or specialized gadgets until you know what your baby likes.

6. Baby Clothing Costs

Average cost: $40–$80 per month (~$800 per year)

Babies outgrow clothes quickly, especially in their first six months.

Costs depend on how often you shop and where. Many parents receive enough newborn clothing as gifts to last for months, then begin purchasing more as their baby grows.

How to save on baby clothes

• Accept hand-me-downs: Family and friends are often happy to share lightly used baby clothes.
• Shop seasonal sales: End-of-season clearance can save 50% or more.
• Buy one size up: Babies grow fast, so slightly larger clothes last longer.
• Resell and recycle: Sell gently used items online or through local consignment shops.

7. Baby Food Costs

Average cost: $150–$200 per month

Once your baby starts solids around six months, baby food becomes a new recurring expense. Fortunately, you will also be lowering formula and diapering costs around the same time.

Jarred or pouched baby food averages about $1.50–$2 per serving, depending on brand and ingredients.

How to save on baby food

• Make homemade baby food: Puree fruits, vegetables, and grains from family meals, it’s fresher and cheaper. Check out these awesome baby food makers we found!
• Buy in bulk: Stock up on pouches or jars during sales.
• Skip organic when not essential: Non-organic options can cost 30% less while still meeting quality standards.
• Freeze extras: Homemade baby food can be portioned and stored for future meals.

8. Toys and Books Costs

Average cost: $30–$50 per month (~$500 per year)

Toys and books help your baby learn and explore, but they can add up fast. Some of the best baby books can cost upwards of $10-20 each.

Fortunately, playtime doesn’t have to break the bank: babies are often happiest with simple, safe household items and shared experiences.

How to save on toys and books

• Borrow and swap: Join local “buy nothing” or parent swap groups for free toys and books.
• Use the library: Borrow age-appropriate board books instead of buying new ones.
• Rotate toys: Keep a few out and store others to make old toys feel new again.
• Buy secondhand: Gently used toys from consignment stores can cost 70% less than retail.

9. Final Saving Tips

Managing baby costs is about balance. Focus on essentials, plan ahead, and know where you can cut back. Here are a few final tips for stretching your dollars:

• Take advantage of registry completion discounts (usually 10–15% off remaining items).
• Use cash-back apps and credit card rewards for recurring baby purchases.
• Set a monthly “baby budget” and adjust as your child’s needs change.
• And remember: love, attention, and time are the most valuable gifts you can give, none of which cost a thing!

For a personalized estimate of your baby’s first-year costs, try our Baby Budget Calculator.

Sources

U.S. Department of Agriculture (2017). Expenditures on Children by Families.

Health Care Cost Institute (2022). Health Care Cost and Utilization Report.

Care.com (2023). Cost of Child Care Survey. view article at care.com

National Diaper Bank Network (2022). Fast Facts on Diaper Need. view article at nationaldiaperbanknetwork.org

Investopedia (2023). Budgeting for a New Baby. view article at investopedia.com