What’s in this article:
You’re probably planning your baby’s name, what they will wear, how you will organise your time to care for them, and how you might decorate their room. But have you thought about how much money is invested, on average, during a baby’s first year of life? Simply put, how much does it cost to have a baby?
How much does a baby cost in the first year?
A 2019 report from IBISWorld listed the average cost of having a baby as $7,918 per year, for the baby's first four years. We’ll break down the total cost of a baby for one year here.
| Product/Services | Average cost per year | Percentage of overall cost |
|---|---|---|
Nappies | $606 | 8% |
Clothing | $649 | 8% |
Food/Nutrition | $1,227 | 15% |
Furniture | $441 | 6% |
Toys | $252 | 3% |
Footwear | $122 | 2% |
Childcare | $4340 | 55% |
Other merchandise | $280 | 4% |
Total | $7918 | 100% |
Cost of a baby per month
Based on the annual cost of having a baby, the monthly cost is between $650 and $700. It's common to spend more leading up to your baby's birth and in the first few months as you purchase your baby's furniture and toys, and then around $600 per month after this period.
Nappies
Babies can use as many as 3,000 nappies in the first year of life. They’ll go through more nappies as newborns and will start to use less as they grow older and start eating solid foods. Some parents will choose to use cloth nappies to reduce the wastage and expense of buying disposable nappies. However, if you’re going with disposable nappies, look for discounts or buy in bulk to reduce the costs.
Clothing
Babies require more clothing than you might think. They grow very fast, and sometimes need a few changes per day. Keep an eye out at market stalls or op shops for good deals on baby clothing and take advantage of hand-me-downs from friends or family, when possible.
Food and nutrition
The cost of baby food and nutrition will vary depending on the family. If a baby takes breast milk instead of baby formula, this will naturally cost much less. Once a baby can eat solid foods, prepare your own purees to save a few dollars. When you go for check-ups with your obstetrician, be sure to ask if there are any samples you can get for baby products!
Furniture
The cost of furniture will depend largely on what you can borrow from family and friends, or find at low prices, second-hand. Baby furniture includes changing furniture, a car seat, high chair, cot and more. Not all of these baby items are necessary, so work out what you can improvise to reduce costs.
Toys
Perhaps one of the most variable expenses is the toys you buy for your child. In this category, you can often find good quality toys being sold second hand, or recycle household objects as baby toys.
Footwear
Babies won’t need shoes in their first few months, but you’ll want a good pair when they start walking, especially outside. Look for an affordable, supportive pair at a discount retail store. Keep in mind, babies grow quickly, so don’t buy them too tight.
Childcare costs
This breakdown of baby expenses shows that daycare is, on average, the largest cost. For the first few weeks, you’ll likely be using your parental leave. Afterwards, there might be alternative arrangements you can make, like a babysitter or organising flexible working hours.
Other merchandise
When making a substantial purchase for your baby, consider if it’s absolutely necessary, and if the baby is going to need the item long-term. This will help you determine which product to buy when prices vary.
Before purchasing parenting books and magazines, remember you can find just about all the information you're going to need by searching for resources online, without spending a single dollar.
