Lifestyle
The true cost of a baby's first year
Diapers are the least of it. The real first-year number is delivery, childcare, and the income lost to unpaid leave, here it is, all in.
"Babies are expensive" is easy to say and hard to plan for. The sticker items, delivery, a crib, a stroller, are the visible part. The big ones hide: childcare that can rival rent, and the income lost while a parent takes unpaid leave. This adds up the whole first year, lost income included.
After insurance.
Leave not covered by pay.
Adjust the amounts to match your situation.
Worked example
A typical first year, $1,200/month childcare, a $60,000 salary, 3 months of unpaid leave:
| Line | Amount |
|---|---|
| One-off costs (delivery, prenatal, gear) | $10,000 |
| A year of recurring costs | $18,360 |
| Lost income (unpaid leave) | $15,000 |
| Total first-year cost | $43,360 |
That's $43,360 in year one. And the $15,000 of lost income is the line most budgets forget. Childcare and lost pay together dwarf every diaper and onesie combined.
Questions
What's the single biggest cost?
Usually childcare or lost income, not baby gear. Full-time childcare runs $1,000-$2,000+ a month in much of the country, and unpaid leave removes a chunk of a salary at the same time.
Does this include tax credits?
No, a child brings the Child Tax Credit (up to $2,200) and possibly the child-and-dependent-care credit, which offset some of this. Use those calculators for the tax side; this is the raw cost.
Related tools
- Child tax credit $2,200 back per child
- Child & dependent care credit offset childcare
- 50/30/20 budget find room for it
A cost estimate from your own inputs; the 10-year figure is opportunity cost, not a bill. Not financial advice.