How much will a baby cost in 2023? (2023)

FAQs

How much will a baby cost in 2023? ›

Having a baby is an incredible life experience, but it also comes with significant financial overhead as well. A recent study detailed that the delivery of a child can cost nearly $20,000, with the estimated post-insurance costs hovering around $2,800.

Giving birth costs $18,865 on average, including pregnancy, delivery and postpartum care, according to the Peterson-Kaiser Family Foundation (KFF) Health System Tracker.

According to a US Department of Agriculture report, the average middle-income family spends between $12,000 and $14,000 on child-related expenses each year. For newborns, the cost is higher.

Average cost to raise a child is $288,094 till age 18. Cost factors include location, childcare, number of children, and lifestyle. Significant expenses: housing, food, childcare, and healthcare. Average college education costs $141,324, rising yearly at 6.8%.

Some of the biggest costs for new parents include healthcare (including birth), diapers, formula, childcare, baby gear, clothes, food, and toys. In fact, you can anticipate spending between $9,300 and $23,380 per year per child.

2023 is predicted to be a year of hope. Chinese astrologists believe the year of the Rabbit is a good one for giving birth. In fact, the rabbit is known to be the luckiest out of all the 12 animals. Set to welcome a bub in 2023?

You cannot claim a baby born in 2023 yet; you'll have to wait until 2024. When you file taxes, you can only include information for that tax year. Even though you are filing your 2022 taxes in 2023, you can only include income, children, marriages, etc. that occurred in 2022.

Separately, LendingTree researchers estimated that basic costs for raising a child in the U.S. equal $20,152 annually according to data collected in 2021 and those numbers are unsurprisingly also trending upward.

Monthly, you could safely plan on spending between $250 (no child care) and $1500 (with child care) a month on your baby.

Why is raising a child so expensive? ›

The largest expense associated with the cost of raising children is housing. This can easily make up a sizable chunk of a parent's budget, especially when you factor in mortgage or rent payments, taxes, insurance, repairs, utilities, maintenance, and basic household goods.

Parents can count on spending close to $50 per week ($2,448 per year) on diapers, formula and baby food alone. Then toss in such big-ticket items as furniture, equipment, clothes, childcare if you're returning to work, medical expenses, and well, you get the idea.

Birth center births and home births are typically less expensive than hospital births,4 because there are no high-risk procedures done; only low-risk parents are eligible. So you save money by not having to pay for those procedures outright, or for any fees involved in the event you'd need them.

A normal pregnancy typically costs between $30,000 and $50,000 without insurance, and averages $4,500 with coverage. Many costs, such as tests that moms who are at-risk or over age 35 might opt for, aren't totally covered by insurance. Plan to have at least $20,000 in the bank.

This figure includes the cost of the pregnancy and post-partum care. 1 And the average cost of vaginal birth alone exceeds $10,000 in more than half of U.S. states. 2 Vaginal birth expenses include the cost of using a delivery room and nursery, lab work, and medications.

Water signs like Scorpios are considered the most naturally fertile of the zodiac, and it proves true for the passionate scorpion in 2023.

The ideal childbearing age is often considered to be in the late 20s and early 30s. Pregnancies later in life could come with some health risks. However, age is just one factor when it comes to giving birth to a child.

Women are most fertile and have the best chance of getting pregnant in their 20s. This is the time when you have the highest number of good quality eggs available and your pregnancy risks are lowest. At age 25, your odds of conceiving after 3 months of trying are just under 20 percent .

Pregnancy deductions

Any year you incur significant medical expenses that relate to your pregnancy, the IRS allows you to deduct a portion of the cost on your income taxes, but only if you are eligible to itemize deductions.

Why can't you claim a fetus on taxes? ›

Because yes, your baby must be born to qualify. You can't claim an unborn child...at least on your federal tax return. You can do so in at least one state beginning in 2023.

I was pregnant most of the current tax year. Is it still possible to claim the baby as a dependent when filing my tax return? Share: To claim a baby as a dependent, the baby must have been born alive during the current tax year.

It can be more than enough for an individual or even a small family to live comfortably. With $100,000 a year, a person could cover typical expenses, pay down debt, build their savings, contribute toward retirement, invest, and still have enough money for entertainment, hobbies, and vacations.

Here's a general breakdown: The average diaper costs anywhere from $0.20 to $0.30. Assuming your baby uses 2,500–3,000 diapers in their first year of life, you can expect to spend about $500-$900 on an annual supply. This doesn't count the cost of other diapering supplies, such as wipes and a changing table.

Prices vary, but in general expect to pay around $125 to $350 for a crib, $50 to $150 for a crib mattress, $100 to $200 for a changing table and $200 to $500 for a glider chair.

Average Household Budget: How Much Does the Typical American Spend? American households spend an average of $61,334 per year, or $5,111 per month — 82% of our after-tax income. Most households have the same major expenses: housing, transportation, taxes and food make up 78% of our budgets.

Created with sketchtool. Later life, boys tend to be more expensive. After age 18, sons are more likely to move back home and more likely to get financial help from their parents, research shows. Whether you have a son, daughter or both, one thing is clear: It's extremely pricey to raise a child in America.

Topping out the list was the San Francisco-Oakland-Berkeley area, where SmartAsset found the annual cost of raising a child is more than $35,600. The high costs of food and housing in the area ultimately pushed the metro to the top of the list. Close behind was another SoCal metro, Santa Cruz-Watsonville.

That cost includes childcare (which, on average, will set you back more than $9,000), food and housing, healthcare, transportation, and other necessities. SmartAsset reviewed 381 U.S. metro areas to determine how much it could cost for a two-adult household to raise a child in 2023.

How many kids does the average family have? ›

The typical American picture of a family with 2.5 kids might not be as relevant as it once was: In 2022, there was an average of 1.94 children under 18 per family in the United States. This is a decrease from 2.33 children under 18 per family in 1960. If there's one thing the United States is known for, it's diversity.

In my family, for example, we set a budget and go from there—and many families do the same. According to a November 2022 study, most parents are budgeting $220 for each child—with the highest budgets for 7 to 12-year-olds, though 28% of those surveyed are trying to keep it below $100.

When all is said and done, MoneyTips estimates that parents spend $80 per month more on girls than they do on boys. This comes out $960 more per year, or $17,280 more over the course of the 18 years that children are likely living at home. Interesting.

At about 2 months, your baby may drink about 4–5 ounces (120–150 milliliters) every 3–4 hours. At 4 months, your baby may drink about 4–6 ounces (120-180 milliliters) at each feeding, depending on how often they eat. By 6 months, your baby may drink 6–8 ounces (180–230 milliliters) about 4–5 times a day.

For new parents looking to save money, you might want to move to Arkansas. It's the most affordable state to have a baby, where annual costs are just under $21,000 a year.

Following Arkansas, the five least expensive states to have a baby in are Alabama, Mississippi, New Mexico and Kentucky.

Cheapest time to have a baby

Seasonally, autumn months are the most expensive on average, followed by summer and winter, with spring the most affordable time of year to welcome a baby.

Focus on your emergency savings

Every emergency fund should have three to six months of basic living expenses (housing, food, bills, etc.) put away for that rainy day. The type of emergency can vary, but the important part is to have that money available at any time, just in case.

The Pros of Adoption

Second, the adoption process can be less expensive than pregnancy and childbirth. This is because you are not incurring the medical costs associated with pregnancy and childbirth. Additionally, there is less of a time commitment than pregnancy and childbirth.

For married-couple families with one child, expenses averaged 27% more per child than expenses in a two-child family. For families with three or more children, per child expenses averaged 24% less on each child than on a child in a two-child family.

What are kids born in 2023? ›

Generation Alpha are defined as those born from 2010-2024.

Budgeting for a baby

If you're new to budgeting, we recommend divvying up your income with the 50/30/20 approach: 50% for needs such as household bills, minimum loan payments and expenses such as child care, diapers and formula. 30% for financial wants.

The Peterson-Kaiser Family Foundation Health System Tracker estimates the average cost of pregnancy, childbirth, and postpartum care for Americans with insurance is $18,865. Nearly $3,000 of that is paid for out of pocket1 even if you have health insurance.

Having adequate savings can set your new family up for financial success. Usually, this takes the form of an emergency fund, which financial experts suggest should consist of anywhere between three to six months of living expenses. Add a baby into the equation and that can be more than you needed before.

Isabelle Alice Koopman was born to her parents Ashley and Cameron Koopman of Greenfield, Minnesota early Sunday morning. Her recorded time of birth was exactly at midnight on New Year's morning, the hospital reports. Isabelle weighs six pounds, 15 ounces, and measures 20 inches.

The average life expectancy of baby boomers, Gen X, Millennials, and Gen Z are different. Compared to the 70-year life expectancy of baby boomers and the 85-year life expectancy of Gen X, Gen Z is predicted to have a life expectancy of over 100 years.

Gen Z: Gen Z is the newest generation, born between 1997 and 2012. They are currently between 9 and 24 years old (nearly 68 million in the U.S.)

One of the largest expenses for new parents can be the delivery—the cost of which depends on the location and health insurance policy. One-time costs often include travel, home needs, and nursing/feeding. Other things to consider include the cost of child care and savings plans.

There's no magic number for how much money you need to have before having kids. But job stability and a healthy emergency fund are a good start. At some point in your 20s and 30s, you'll start to wonder if you want to have kids, and if so, when you should do it.

Experts say the best time to get pregnant is between your late 20s and early 30s. This age range is associated with the best outcomes for both you and your baby. One study pinpointed the ideal age to give birth to a first child as 30.5. Your age is just one factor that should go into your decision to get pregnant.

What is the best age to have children financially? ›

To that point, having Junior at 26 is more likely to cut into prime saving years because younger couples tend to have tighter budgets and don't contribute as much to retirement, says Rebecca Kennedy, a Certified Financial Planner™ (CFP®) and founder of Denver-based Kennedy Financial Planning.

The procedure is common and included in average costs associated with delivery. For uninsured people, the cost of an epidural can range from about $1,000 to over $8,000. Doulas, who support a pregnant person before, during, and sometimes after the delivery, are an optional cost.

How much does it cost to give birth? Prepare for some sticker shock: The health costs associated with both pregnancy and childbirth average almost $19,000, according to a July 2022 analysis released by the Kaiser Family Foundation.