I've teamed up with Allstate for this post about saving money during baby's first year.
No matter how prepared they are, every parent would admit that there are things they would have done differently during their child’s first year, especially when it comes to spending and saving money. The Allstate Blog has created a Baby Budgeting Blueprint in hopes that new and expecting parents can benefit from the wisdom and experience of those who have been there, done that.
There are SO many things to consider when it comes to having a baby, but more often than not, what tops the list of concerns is the COST of a new baby! Rightly so, because on average, new parents spend around $13,000 on their new baby, and that is just in the first year!! According to the latest "Cost of Raising A Child" report from the U.S. Department of Agriculture, a middle-income married-couple family in the U.S. will spend between $12,800 and $14,970 each year, but you can off-set a substantial percentage of this with just a few conscious decisions. First, are you stumped as to where all of money that goes? How on earth can one infant rack up that kind of a bill?
BabyCenter.com presents an estimate breakdown showing where you might be dropping all those dollar bills in their Baby Cost Calculator.
Ongoing costs such as childcare, diapering, feeding, clothing, savings for college, medicine/first aid, toiletries, and toys/books/media total $8,100.
Gear (infant car seat, basic stroller, play yard, front carrier, and diaper bag) will typically cost $417.
Activity equipment (bouncer/bouncy seat, play mat/gym) will cost around $90.
Nursery furniture (crib, changing table, bassinet, basic bedding and blankets, mobile, crib mattress, and baby monitor) totals around $693.
Feeding items (bottles and nipples, highchair, utensils, plates and bowls, cups and sippy cups, burp cloths, bottle brush, and bibs) come to an average of $234.
Breastfeeding expenses (milk storage bags, breast pads, extra breast shields, ice packs, nursing bras, and a nursing pillow) total $177.
Bathing/Groom items (baby towel with hood, infant bathtub, baby washcloths, and baby nail clippers) come out to costing around $49.
Other expenses like childproofing supplies, safety gates, diaper pail, pacifiers, birth announcements, a baby book or scrapbook, and photo printing costs total around $398.
But don't despair! We have some great tips that will save you hundreds of dollars over the course of that first year!
Tip #1: You can save a huge amount of money by breastfeeding instead of formula feeding. Formula can easily cost over $100/month, whereas breastfeeding will cost you close to nothing. Of course, choosing to breastfeed is a personal decision and one that doesn't work out for every woman, but if it is a matter of choosing to nurse or not, consider that breastfeeding can easily save you at least $1500 over the course of this first year. While you're not buying formula, you're also not buying a supply of bottles, nipples, bottle brushes, disposable liners, bottle sterilizer, and drying racks. Additionally, any breastfeeding expenses you might accrue on equipment are taken care of, thanks to the IRS approving breast pumps and other breastfeeding equipment as tax-deductible. Another thing you might not have considered before is how formula fed babies are more likely to spit up, which really increases the amount of laundry your baby produces. More laundry means more expenses in the form of utilities, laundromats, and/or detergent, and perhaps having your clothes wear out faster. Breastfeeding your babies also provides them with antibodies that boost their immune system, thus putting them at less risk for certain illnesses and diseases, which saves you money on medicine and doctors visits. Breastfeeding also creates less waste in the form of packaging and equipment that comes with formula.
Tip #2: You can also save a large amount of money by choosing to use cloth diapers instead of disposables. While there are upfront costs for the prefolds, covers, wetbags, pail liners, and few other accessories, you're still only looking at somewhere between $120 and $260 (or about $400 if you're planning on using pocket diapers), versus $1,500-2,500 you can easily spend on disposable diapers, and ALL of that is going straight to the trash. You can even save yourself a pretty penny by opting for reusable wipes, which you can make yourself by cutting up used receiving blankets or using baby wash cloths. By using cloth diapers, you are cutting down on your waste, as well as the time and gas spent to get to the store in the middle of the night for disposables, because you'll always have your reusable stash at home. Blowouts will also be more contained in cloth diapers, meaning less laundry expenses and less stained or worn out layette. You might also save money on diaper rash cream and baby powder since babies in cloth diapers tend to get fewer rashes. If you're considering cloth diapers, or simply want to learn more about all the benefits, our post on Why You Should Choose Cloth Diapers will really talk you into it!
Tip #3: Another great tip on how to save a boat load of cash in your first year with a child is by only buying the very essentials new. One key essential that comes to mind is a car seat, and you absolutely want to make sure that the car seat you use is not expired and has not been in any sort of car accident or trauma. Basically everything else can be found second hand if you search or ask for it. If you choose to to buy equipment slightly used, be sure to check for recalls first and make sure you are persistent about knowing the item's history. Be thorough as you check for any broken parts, missing pieces, loose components, or overuse before you accept any piece of baby equipment. If you're careful about what you accept, you can find some great baby gear that is barely used, practically new, and just a fraction of the cost of buying it new.
Ultimately, there is no getting around some baby expenses, especially in your baby's first year, but there are definitely ways to alleviate these costs if you are intentional about a few key things!
What are some ways you found to cut costs during your baby's first year?
I'd love to hear your ideas!
This post was written as part of the Allstate Influencer Program and sponsored by Allstate. All opinions are mine. As the nation’s largest publicly held insurance company, Allstate is dedicated not only to protecting what matters most–but to guiding people to live the Good Life, every day. Image credit: © / Dollar Photo Club.
Lindsey G says
What great tips for expecting parents. I definitely did #2 and used cloth diapers for both of my children and agree - it saved us thousands of dollars, no doubt. I also went the consignment route and saved a lot that way and still continue to go to consignment sales for my girls' clothes. It's amazing how much you can save and still get great quality clothing!
LAURA B says
In my humble opinion, children aren't expensive but lifestyles are 🙂
rANA DURHAM says
thanks for this amazng article. this is something I will share with all my friends because we all need to do it
Sandra Watts says
I am going to pass this on to my niece. I can't help but be excited for her having her first baby in August.
Michelle elizondo says
Those are great tips to share. Especially with a newbie mother.
Darlene Jones-Nelson says
Thanks never thought it would be so expensive to have babies! Sharing these with my Girlfriends Thanks!
rANA DURHAM says
wow this is so valuable and it is an eyeopener to life
Andrea Monteagudo says
Great Tips! Going to keep them in mind for when I start having kids 🙂
Rebecca Parsons says
Great money saving tips and a lot of common sense which is refreshing to read. I love to save money!
rANA DURHAM says
great tips oh I am tking this al in
Camille says
Love this breakdown! I sometimes look at my friends with babies who are struggling financially and wish that they had chosen to breastfeed and to cloth diaper! I know I will try my hardest to do both. Isn't it funny that what is best for baby's health is often what's best for the pocketbook and for our planet?
I also love your last tip of buying only the essentials. My husband and I move a lot for his job, and I definitely want to streamline what we buy for baby! The more stuff we have, the more clutter and the harder it is to move.
Heather in VA says
Babies need so very little and yet we are shown so much! Give them food and love and diapers. The rest is nonessential.
Jillian Bernath says
Budgeting is key!! I always plan out a budget for bills, leisure, and fun , etc. It helps us keep track of our money and save. It is NEVER followed to a T, but it is more of a guide.
Amber Ludwig says
Such great tips to save money!! Im a total penny pincher! We breastfed but hubby would not agree to cloth diaper!! Luckily, Target brand diapers are fairly cheap and totally fabulous for my son's sensitive skin! We purchased so many items previously owned but in great shape!! Kids don't know the difference and they are used for such a short time 😉 Now if you guys could help me figure out how to store all this craziness in the icky Wisconsin weather I;d be set 😉
Deborah D says
These are all excellent tips. I'll have to tell my sister to read this post.
SandyV says
This was a really great article. I already do all 3 but seeing the numbers again is a really great reminder for why they are such great choices.
Linda Mannst says
Babies can be very expensive. These are some great savings ideas for parents. Thank you for sharing
Lisa Garland says
Love the idea of breaking down where you money is spent on baby. I never used cloth diapers but I see they are being used a lot now, definitely worth a try!!
Amanda lane says
Buying more used instead of new, most stuff I didn't keep and had to re-buy with my 2nd and 3rd kids.
Natalie says
Breastfeeding not only saves you money, but I believe it is better for the baby!
Heather McKenzie Carter says
With my first child, we spent a ton of money. I also didnt breastfeed her very long and had all very expensive fancy baby "stuff" for her. I had to have everything. I remember having drawers full of clothes with tags on them that she grew too fast to wear. When I breastfed my second child for a whole year we saved thousands alone doing that. It was crazy lol.
Joy says
If we lived a lot more like our great-grandparents, these issues would mostly take care of themselves. In fact, not just in baby-related things, but getting back to living off the land, working hard, using our resources wisely . . . all of these were instilled character traits of our ancestors and humanity all around the world. Unfortunately, today's generation such different expectations. Yes, that's about it: it has to do with expectations of what we are entitled to, etc. I guess I don't mind being a little old-fashioned. It's a simpler life and saves gobs of money!
Jessica Haynes says
We are planning on doing several of these things! Other than what we're gifted we will probably use mostly hand-my-downs. We're also starting a stash of baby things now, before we're TTC, so we won't have to spend as much when we have our first.
Landon @ Bring the Fresh says
Wow these are some great ideas, thanks! I'll have to bookmark this one for sure..
Jay A. says
I like the idea of cloth diapers but its also means using water to wash them and flush poop down the toilet. So I think there can be an added expenses if you need to wait for a full load (buy lots of cloth diapers) or do lots of small loads which not only are you buying the diapers but also the detergent and if you will either have to buy special ones if your child is sensitive to the ones you already are using. So I think it will depend on a person and budget because when going out most parents will have to use disposable ones. Also not everyone can breastfeed and specially in public. Another tip should be a combination of all or some.
Laura says
What great tips! My husband and I are planning on having our first pretty soon, so I love articles like this!
Lori Mahan says
Thanks for the information. I think the amount that said seems a little low to me. My daughter is having our first grandson and I am spending a small fortune just on gear. When my kids were small, it only costed about $30-40 for a great car seat and cribs were so much cheaper. I think that they should double that amount.
Katie S. says
This was a great article for easing me into the first steps of trying to save money for your first child. It wasn't too much- just enough to get me brainstorming.
One idea that I came up with while babysitting my niece (4 years old, so not exactly helpful during the first year) after I had put all her dirty clothes in the wash, was to dress her in my old, really shrunken sweaters. Sounds funny- but she looked so cute in some of my tops that I accidently shrunk to baby doll size and knew I'd never be able to donate. I threw one of my "vintage" sweaters on her, and she looked so cute and she wanted to wear it home! From now on, rather than being super upset when I shrink one of my tops, I will just save it incase I ever have a baby girl!
Mitzi Fisher says
This is awesome advise. Having a baby is a big step.
Mitzi Fisher says
The product I would so love to have is Wayland Easy Reach 4-in-1 Convertible Crib. I love all your products.
Michelle Kelly says
all good advice but I've chosen not to breasteed. I have hyperemesis and I just feel that my body has been through enough. I've signed up for many formula companies emails and they sent high value coupons and full size product samples which is helpful. You can have your friends and family sign up too and they can give you the samples they receive.
ERICA WEAVER says
these tips will come in handy especially since i have a another baby coming in june i would love to be able to save more
lisa says
I did all of the above when mine were infants. It really does help. I was so young at the time, I still struggled but every little bit helps.
Sharon says
I like these tips! I definitely had to save money, since I was buying for two!
Delirah Morales says
Some ways we cut costs for babie's first year was shopping on Craigslist. We are alone out here and a baby shower was out of the question so we cut costs where ever we could . We bought a chicco high chair for $25, crib, dresser, and changing table for $375 vs $1,200 retail. We purchased other misc items but before we purchase them we checked for recalls and reviews on the product. One thing I felt it was important not to skimp on was his car seat. You never know if it's was in an accident. It's not worth the risk. I do agree with the breastfeeding. I mean c'mon! It's freeeeee!!! 🙂 Thanks for sharing these tips.
RANDY FULGHAM says
THIS sounds real good --i will pass it on to my grand-daughter ,who is having her first baby in july--thanks
Kimberly Frazee says
Great hekpful tips and tricks. Thank You so much
Kim D. says
Thanks for the great article!
Chandice says
I'm not pregnant yet but these are great tips for when it's time
Marnie G (Derrick Todd) says
These are great tips. Its also good to network with other "moms" to share infant items if they have older kids and are holding onto items in case they have another. Most are more than willing to lend out things such as baby monitor, bouncers, etc.
ALPA says
Thank you so much for such amazing tips. all are very usefull. i like the idea of using cloth diapers as it really helps in saving a ton of money when it comes to buying diapers then.
Vinita says
I sadly was not able to breastfeed because I couldn't produce. However, we did just start cloth diapering a month ago. I also buy most of her clothes and everything else was either gifts or used!
Ruth V. says
Same here! I wasn't able to breastfeed either - I wish I could have for all the health benefits, but also because formula is SO expensive!
Jo-Ann Brightman says
These are good ideas on how to save money, especially by only buying the essentials. New Parents can often buy to much because they are
worried about not being prepared
Anna says
Buying used kids clothes is the best way to save money, I think. They only wear them for a short while anyway.
Amy S says
good ideas!
and entering in contests could save $$ too (if you win)
courtney b says
did you leave out cloth diapers? Those help a LOT and save you a lot of money on diapers!
Thanks
April says
I'm having my first baby in May and I am definitely going to breastfeed
April says
I'm having my first baby in May and I am definitely planning to breastfeed
Shakeia Rieux says
This is very helpful information
Sandra Watts says
Thanks for the tips and info. Passing it on to my niece. 🙂
Theresa Hover says
It's interesting to see a list of an average cost for those different baby items. We're planning on doing all those money saving options when our first little one arrives (breast feed, cloth diaper ect.) Our strategy is to invest in quality things that the baby will use for a long time (carrier, carseat, crib/bed) and buy as much used as possible, especially things babies don't use very long, like a bassinet or bouncy seat. Also, since almost all of my own clothes come from the thrift shop, I know we'll save tons of money on second hand clothing.
Carol Bliss says
Great tips! I am due with my 4th child any day now and really need to save all the money I can!
Michele L. says
Great article! I've saved a ton of money couponing and stocking up on diapers and other essentials when the price is the lowest. I'd rather have a closet full of diapers, wipes and misc. than to run out last minute and pay full price for something I need. I'm also happy to shop at thrift stores and garage sales for clothes and toys in like new condition.
Kelly L. says
We are choosing to use cloth diapering for our baby, and I have also created some fleece wipes from old nightgowns. There are so many easy ways to cut costs 🙂
Dorothy Boucher says
Thanks for sharing these ideas with us. I know I tell my daughters that recycling and putting those pennies away really pays off in the long run..
Denise N. says
These are great tips. When I had my first baby, I chose to breastfeed mainly because of how much money it would save us. I was so glad I chose to nurse for many more reasons than money once I started, but saving all that cash certainly was a big help. I also tell my friends who are soon to be moms to buy their baby items second hand (except for the car seat) at a local consignment shop. Baby gear is soooo much money and consignment shops only take like new stuff that has not been recalled. It saves big bucks buying second hand and I still shop these stores for my girls (and even for myself).
Karen Y. says
While I definitely agree with the tips you have posted I don't agree with the amount you have set as expenses. You state that on-going costs for the child's first year are about $8,100 and this includes things like child care, diapers, toiletries, clothing, medicine, toys, books, feeding, and saving for college. Then you go on to say that using cloth diapers can save you at the most $2,500. This leaves $5.600 for the rest of the items. Now assuming you purchase the toys, clothes, and books at the thrift shops, you don't have much left for the other stuff. You stated that you live in the Orlando area. Well I live in Tallahassee and I can tell you that childcare centers here cost almost $800 per month for a child under 1 year of age and that's assuming you can find one because they don't have many. for a full year that is $9,600. Which is well over what you have allotted for this entire category. Not sure where you got your figures but I don't think they are realistic.
Ruth V. says
Sorry for the confusion Karen. Those are the national averages according to the Department of Agriculture - not my own personal experience. I actually live in SW FLorida and childcare costs are exorbitant
Lisa Coomer Queen says
This was very interesting. Great tips. Thanks for sharing.
Alexandra says
Love the tips! I'm definitely looking into cloth diapers, are there any you recommend? Also any websites or info on reusable wipes? I would love to get more info before my baby arrives 😀
Ruth V. says
I'd definitely recommend bumGenius diapers - I love the Freetimes and Elementals, but started out with their 4.0 pocket diapers.
Here's a great article from The Eco-Friendly Family about cloth wipes: http://theecofriendlyfamily.com/2010/04/cloth-wipes/
I have a full stash of Thirsties Fab Wipes - I love those best.
Hope that helps! Good luck 🙂
Jo Ann Zavala says
I breastfeed and used cloth diapers. I saved a lot of money and it was better for my children.
Pam V H says
This is so true. With both of my children I did breastfeeding, cloth diapers, and garage sale items. I feel like we spent hardly anything. Now one is in college - different story!
Catherine says
These are wise tips from years of experience. Great article
Marcy says
With a little one on the way, I really had no idea. This is so insightful
Sherry says
great tips
Caroline Reale says
Lots of great tips, thanks!
cheyanna says
I wish i would have read this when i had my son
brandi greenfield says
These are all great ideas. i bought alot of my daughters clothes at thrift stores, still do to this day. it saves alot and they are still good quality.
Jenness says
I could save money on child care if I got any kind of a discount from my MIL! She runs a day care from her house, and charges us the same as every other family. To watch her own grand daughter. And makes us pay in the summer "to reserve her spot" even though I am a school nurse and have the summers off.
Sorry, you would think that after 21 months I would get over it. Nope.
But there ARE some great tips in this blog. So, thanks!!!
Linda Mannst says
This is such great, helpful information. Thank you so much for sharing
Liz Sikes says
It's funny how the best things in life are free (or close), I only wish I breastfed longer rather than let society pressure me to stop before we were both ready, I ended up spending a fortune on lactose free hypoallergenic formula that's could've easily made myself. I also kicked myself when she got sick and had to watch her suffer, wishing my immune system could battle for her. I comend anyone breastfeeding and using cloth diapers. I switched to disposables when I went back to work and ended up with lots of rashes to deal with. We now alternate disposable with cloth whenever possible.
Jenny says
My husband figured it out one time and we had saved thousands of dollars by breastfeeding. Although we still had to supplement we were able to use the formula checks to reduce our cost.
Caitlin R. says
Thanks for the great tips! For #2 we are going to be buying used instead of everything new. Our first will be 4 or 5 and we've sold quite a bit of gear over the years.
Landon Wiggs says
Wow -great tips! As a new father (4 month old son), everything I do I do for my son, so saving money here and there is definitely helpful.