The Hidden Costs of Having a Baby

You’ve decided to have a baby. Anticipating your child’s arrival is such an exciting time. Baby showers, finding that perfect crib, preparing a nursery, and picking out cute onesies are just a few of the fun things coming your way. With all of that “fun” comes extra expenses. Sure, there are the obvious costs like diapers, food, and clothing, but are there other costs that you may or may not know about? Here is a list of hidden costs that can help you to budget your dollars and prepare for the arrival of your new bundle of joy.

According to the U.S. Department of Agriculture, middle income families spend an average $12,980 a year on each child and $233,610 in a lifetime–not including college. If you are considering having a baby, be aware of all of the expenditures that could impact your family budget.

Prenatal care
The cost of having a baby includes more than just the actual childbirth. These costs also include regular check-ups, tests, and prenatal care associated with pregnancy. According to WebMD, the average cost for prenatal care is about $2,000.

Both pregnancy and birth require a lot of medical attention. You won’t be charged for the birth alone. The pregnancy itself is filled with costs that accompany numerous doctor’s visits, tests, and procedures you might have. You’ll want to make sure you have enough financial cushion to account for these extra expenses.

Labor and delivery
The average price of having a baby, through standard delivery, is between $5,000 – $11,000 in most states, according to data collected by Fair Health. This range includes total duration of care, obstetrician’s fee, anesthesiologist’s fee, and the hospital care fee. Additionally, the average costs for a Cesarean or C-section birth range from $7,500 – $14,500.

A birth not going as planned, such as when and where your labor begins, whether the baby has trouble making their big entrance, and what kind of care you and the baby may need after the birth, will increase the charges for childbirth.

Childcare
According to a recent NerdWallet study, half of expecting parents thought diapers would be the biggest expense of having a baby, not childcare. According to the study, full-time childcare ranges from $8,000 for daycare to $27,000 or more for a nanny.

Healthcare
Babies need to be taken to the doctor often; weekly at first, then monthly, plus additional visits when they are sick. Your healthcare plan may not charge copays for the well-baby visits, but keep in mind that these may not be your only doctor visits. Ear infections may take two or more visits and need a prescription. There are also non-prescription supplies that may be needed – teething gel, humidifier, creams for rashes, thermometers, and so on. Take a look at your plan to see if it will cover more frequent visits and other expenses.

Higher utility bills
You will be home a lot more when you bring a new baby home. You will run your heat, air conditioning, lights, laundry, and dishwasher much more than before the baby arrived.

Bigger home
When a couple decides to add a baby into the mix, many times they want to upgrade to a bigger home to make room for their growing family. Having more room is nice, but think about how a higher mortgage payment or monthly rent might impact your budget and stretch it too thin.

Loss of income
During maternity leave, you may only be paid a portion of your salary, depending upon your company’s benefit structure. If you decide to take additional time off, it might be taken as unpaid or part-time. Some parents may have to take unpaid days off for some of the well-baby doctor visits or when the baby is sick.

Life insurance
You don’t think too much about life insurance before having kids. But once you do, you begin asking yourself what would happen if one parent died suddenly. Life insurance costs vary widely depending on your overall health, lifestyle, and the specifics of your plan.

Now that you are aware of these potential hidden costs, you’ll be better prepared for extra expenses that may pop up. You can enjoy the journey with less stress, and focus on more important things like… “Should the nursery have a mural of zoo animals, dinosaurs, or superheroes?”