The Reality of Postpartum Financial Changes

The Reality of Postpartum Financial Changes

Giving birth to a baby can be both a rewarding and joyous experience. However, in today’s economy, this new addition to the family often comes with some big financial changes.


New parents can expect to spend a significant amount of money on equipment for their baby as no newborn is complete without proper supplies such as:

  • Diapers: The average child will require more than 2,500 diapers in the first year.
  • Bottles: From the traditional bottles to specialty bottles for preemies, the cost for these items can quickly add up.
  • Car seat: Depending on the model and features you choose, a car seat can range in cost from $50 all the way up to over $400.
  • Clothing: Newborns go through clothing quickly and if you are a fashion conscious parent, then you will likely be spending quite a bit of money on clothing.


For single parents or couples where both parents work, daycare costs can significantly increase a family’s budget. After factoring in your round-trip commute to work, these costs can quickly put a financial strain on your family. The average national cost for full-time daycare for a baby can range from $4,600 to over $15,000 annually depending on your location and facility.


Aside from having health insurance for yourself, many parents choose to additionally get health insurance for their newborn. Aside from the steep premiums, many parents are surprised to learn that their insurance policy may not cover the entire cost of their child’s healthcare.

Reducing Costs

New parents should consider the following avenues to reduce costs:

  • Create a budget and stick to it
  • Take advantage of free resources, such as free classes sponsored by your hospital
  • Borrow items such as toys and clothing from family or friends.
  • Look into the government’s program such as the Child Tax Credit, and the Earned Income Credit

Having a newborn can be an exciting time, but the financial reality of bringing a baby into the world presents a number of challenges that new parents need to face. With some careful planning, parents can spend their new baby’s first year and beyond without putting a large strain on their finances.

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