Raising a child: How much will it cost?

Key Takeaways

• The cost of having a baby varies widely, but averages about $20,416, with insured families typically paying an average of $2,743 out-of-pocket.

• A child’s first five years are especially expensive, averaging over $29,000 per year, largely driven by childcare, nutrition, and essential baby gear.

• Raising a child to age 18 costs roughly $303,418 on average.

• Ongoing costs like childcare, food, housing, and healthcare significantly increase a family’s annual budget over time.

• Planning ahead through budgeting, cost-saving strategies, and tools like life insurance can help reduce the long-term financial strain of raising a child.

If you're thinking about starting a family, or have already begun the process, congratulations! Becoming a parent and raising children can be one of life's most fulfilling endeavors. And while you have a lot to look forward to, the joyful expectation of a new family member may be accompanied by nervous anticipation of new expenses and questions: How much does a baby cost? What will you spend as your child gets older? What can you do to minimize financial stress? This article can help by telling you about the following:

• Expenses to expect when having a baby

• What you might spend raising a child through college-age

• Ways to deal with the financial challenges

How much does it cost to have a baby?

The cost of a baby's birth — including prenatal care, delivery, and postpartum care — is highly dependent on where you live, the facility where the baby is delivered, and the type of birth, with deliveries by Cesarean section costing significantly more. And importantly, the amount you pay out-of-pocket can vary widely depending on what type of insurance you have. Here are some key facts:

• According to the Peterson-Kaiser Family Foundation Health System Tracker, the average bill for having a child — including prenatal care, non-Cesarean delivery, and postpartum care — was $20,416.¹

• In 2025, the average out-of-pocket cost for patients with health insurance was $2,743. The out-of-pocket cost for delivery alone was $2,563 for non-Cesarean and $3,071 for Cesarean.1 Mothers who have a cesarean section incur an average of $28,998 more in total healthcare costs over the course of their pre- and post-natal care than those who do not, and cesarean deliveries represent 22.9% of all births, according to the CDC.²

• Alaska is the most expensive state to give birth in, with a median delivery cost of $29,152, while Mississippi is the least expensive, at $9,847.³

• Assuming uncomplicated birth and postpartum recovery, these totals included prenatal care, delivery, mother's hospital bill, baby's hospital bill, medication, and newborn care by a pediatrician. However, if the mother or baby experiences complications, the total and out-of-pocket costs will likely increase. For example, children who spend time in the NICU as newborns incur an average of $77,992 in healthcare costs for their first 18-24 months of life.⁴

Bottom line? While childbirth can be a stressful event, as long as the mother is covered by health insurance, the total cost may be considerable but not necessarily unmanageable for an average middle-income family.

Costs to expect in the first year

According to Lending Tree’s 2026 report, annual expenses during a child’s first five years of life can range from $29,325, with a total cost of $303,418 to raise a child up to age 18.⁵

Of course, your total expenses will depend on your personal circumstances and choices — especially those regarding nutrition and child care. The overall amount you spend on your child depends on factors like location, childcare needs, and purchasing choices. For example, if the mother chooses to breastfeed rather than use formula, the nutrition expense will be significantly lower. And if one of the parents can care for the infant — rather than hiring a nanny or sending the child to a daycare center — your child care costs will be significantly lower. That said, here are some ballpark figures on expenses between birth and age two:

• Baby equipment
  Your first major expense after the cost of childbirth itself will be for essential baby gear, including a crib, stroller, playpen, car seat, baby bath, highchair, bottles, breastfeeding kit, and more. Plus, if you want to get a jump on baby-proofing the house, you'll need additional equipment, including safety gates. Since every family's living situation is different, there is no way to predict exact costs, but they have been estimated to reach up to $5,000 for the first year.⁶

• Baby care
  Assuming that neither of the parents will be available to take care of the baby — and no relatives or family friends step up — child care costs will be the biggest expense during the baby's first year of life. How big? Well, as of 2025, the average cost for nine months of childcare for a new baby was an $10,107 in the United States.⁶ It’s important to note that these are nationwide averages and that costs vary depending on your location. Child care costs in more expensive areas, such as New York City and Los Angeles, will probably be significantly higher and are often the largest expense for working parents.

• Nutrition
  As noted earlier, the cost of a baby’s nutrition during year one depends, in large part, on whether the mother chooses to breastfeed or use formula. According to a 2025 survey by BabyCenter, parents can expect to spend $3,535 feeding their baby in the first year.⁷ Formula costs an average of $222 per month, while breastfeeding supplies total around $424 for the year. Food is typically introduced around six-months.⁸

• Diapers and baby clothes
  Diapers and wipes can cost roughly $86 per month, and baby clothes run around $68 per month, on average.⁹

Clearly, the first year of a baby’s life can be quite costly. But if you employ some common strategies to save money — such as shopping at big box stores and using hand-me-downs from relatives or friends for equipment and clothes that they no longer need — your expenses may be more manageable.

How much you could spend until age 18

Like virtually everything else, the cost of raising a child has increased in recent years. In fact, it increased by 19.3% between 2016 and 2021¹⁰ — the last year for which complete data is available — and has undoubtedly grown since then due to above-average inflation. Here are some key figures as of 2021:

• Nationwide, parents will spend an average of $303,418 raising a child from birth to age 18. Of course, this figure will vary depending on your location, with costs in Hawaii being the highest ($412,661) and New Hampshire the lowest ($201,963).¹¹

• Parents spent a yearly average of $29,325 on raising a child. This figure represents annual costs minus tax exemptions or credits. Annual expenses were highest in Hawaii, Maryland, and Massachusetts, and lowest in Mississippi, Alabama and South Dakota.¹²

• Parents spent an average of 21.9% of their annual income on raising a small child. This percentage was highest in Hawaii (27.4%) and lowest in Washington, DC (13.9%).¹³

• Families with a child spent $1,680 annually on rent.¹⁴

• Families with a child spent $4,208 annually on food.¹⁵

• Families with a child spent $3,638 annually on insurance premiums.¹⁶

• Families with a young child spent an average of $17,264 per year on child care.¹⁷

Of course, the exact cost for an item will be higher or lower, depending on your location, your circumstances, and your choices. For instance, parents who can handle some or all of the child care duties themselves will save a substantial amount of money over the course of a year. Conversely, parents who opt for private preschool will see their annual outlay jump. And don't forget — there will be additional expenses down the road — such as increased insurance premiums when the child is learning to drive.

If college is part of the plan for your child, start preparing now

As of 2026, the average cost for an in-state student living on campus at a public institution is $30,990 per year. Out-of-state students will pay an average of $50,920 per year. Students at private colleges will pay an average of $65,470 per year.¹⁸ And, if history is a guide, these costs will be significantly higher — even with financial aid — by the time a baby born this year graduates high school.

The bottom line? The expenses incurred over a child's life significantly impact family finances. But people like you manage to do it, and careful planning and financial preparation can help lessen many of the financial concerns.

Think about whether life insurance should be part of your plan

If you’re young and just starting a family, life insurance may be the last thing on your mind. But it can help you be better prepared to handle the financial and emotional challenges of parenthood. Here’s why:

• Life insurance is crucial for individuals with children — especially young children or children who are decades away from being self-sufficient — who rely on their income. Life insurance ensures that in the event of the policyholder's death, their survivors are financially protected and can maintain their standard of living. The life insurance death benefit — usually a tax-free, lump sum payment — can help cover a range of expenses, from food and other daily living costs to mortgage payments, preschool costs, and college tuition.

• A permanent life insurance policy — whole life insurance or universal life insurance — can be used as a tax-advantaged savings vehicle to help you achieve specific financial goals, including college tuition and family health emergencies.

• If your family depends on two incomes, consider life insurance for both parents. Should one parent pass away, the life insurance death benefit will help replace their income.

• If one parent works and the other handles child care, coverage for both parents can also be essential, because the death benefit can help pay for child care so the surviving parent can continue to work.

Guardian can help

If you'd like more information on life insurance for yourself or your partner, take the next step: talk with an experienced professional who will take the time to learn about your unique situation and explain the different options that may fit your needs and your budget. If you don't know a financial professional, ask your friends for a recommendation — or click below to find a Guardian financial advisor in your area. Remember, the younger and healthier you are, the less your policy will cost. So why not do it today?