How Much Should You Save Up for Your Baby’s First Year?

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While having a baby will be one of the happiest moments of your life, there’s no getting around the fact that babies can be expensive. But by having a good understanding of the things you need to spend money on, you can calculate what your costs will be and begin saving up for your baby’s first year.

Childbirth

The cost of childbirth in the US is determined by your delivery method, whether you have health insurance and the nature of any pre and post-natal complications. But on average, the overall cost of having a baby is between $10,000 and $30,000. The lower cost is typical for a natural delivery with no complications, while the latter cost is more typical if you need to have a cesarean section and it comes with complications. The costs of delivering a baby also vary according to your location, as the expenses differ from state to state. To determine the cost of delivery, find out more about the average cost of childbirth by location in the US. Then check your health insurance policy so you know exactly what is covered. Once you know the cost for standard childbirth and any additional costs that could arise through complications, you’ll know how much you need to save.

Healthcare

Healthcare costs do not only apply to the birth. You’ll have various healthcare costs throughout your baby’s first year. You’ll have to pay for things like wellness checks, vaccinations, and various childhood maladies. Again, consult your health insurance policy so you know what is covered and what costs you will be left with. Also, be aware that your health insurance premiums could go up once your bundle of joy arrives.

Clothing

The amount you need to save for your baby’s first year is determined by plenty of other factors besides childbirth and healthcare costs. One thing you need to budget for is your baby’s clothes. Babies grow quickly! So, you’ll need to take that into consideration when looking at how many items of clothing you need to purchase. You can reduce the clothing cost by inviting your friends and family to give clothing for your baby shower or by using passed-down baby clothes from your loved ones. You also need to factor in how messy babies can get! They are likely to go through at least one change of clothing per day. Work out how much you need to spend on your baby’s clothing so you know how much to save up.

Food and Feeding

Another major expense is food and feeding equipment. Even if you breastfeed, you may still need to purchase accessories like breast pumps and nursing bras. And if you supplement breastfeeding with baby formula, you can expect to pay around $100 per month on the latter. After about six months, your baby will move onto solid foods. The typical cost for baby food is around $50 per month. Also, don’t forget other things you will need for feeding time, such as bibs and a high chair. Costs for accessories can soon mount up, so you need to do your calculations early on so you can save the right amount of money to cater for your baby’s first year of feeding.

Diapers

If you are new to parenting, you won’t believe how many diapers your baby will get through. The average is ten per day. So, whether you use disposable diapers or reusable cloth ones, the costs can soon mount up. Typically, disposable diapers cost around $75 per month. If you use a cloth diaper service, you can expect to pay around the same amount. But if you wash cloth diapers yourself, you can save money, as it typically costs around $20 per month.

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