Babies can cost a lot according to articles and research. BUT babies in my opinion are not quite as expensive as everyone says. You can raise a baby on a decent budget, you just need to know where to spend and where to save.

Basic newborn costs to consider for sure:

Pregnancy costs - if you have health care hopefully it covers pregnancy related costs. Check with your health care plan so you know up front what it’ll cost. Some employee plans cover a lot. My son’s birth, for example, was almost totally covered. I think we spent about $10 out of pocket. My friend’s birth cost her around $1000 out of pocket though, so plans do vary. Click here if you need help paying for pregnancy-related health care.

Clothing - all babies need some sort of clothing. However you don’t need to spend the average (about $600+ a year). You can shop at thrift stores, garage sales, and gather hand-me-downs which will cut costs considerably.

Food - all babies eat. Luckily us mamas come with handy built in (and FREE) feeding equipment. Yes, breastfeeding is not only best, but the cheapest form of baby food. You will need to consider nursing bras and nursing pads, but on sale these supplies can cost very little. You can still save money once your baby starts solids too by looking for sales or by making your own homemade baby food.

A car seat - you can’t skimp here. A good car seat is a must have.

Newborn health care - in some cases your little one may be covered by employment insurance for as little as $100 a month extra over your normal costs. Private insurance can cost a lot or be reasonable (it varies considerably) but if you can’t afford health care there are some low-cost or free insurance plans you can look into.

Employment related costs - this is where the bulk of your cash will go. If you work child care can cost you a bundle (up to $5,000+ per year). You’ll also need to consider feeding while working which may mean a breast pump or formula and bottles. Carefully consider if one stay-at-home parent is a better deal financially for your family.

Diapers - all babies need diapers (although you can be brave and try diaper-free). Disposables cost the most but you can find deals, while cloth diapers can save you lots.

Above are the bare minimum costs to consider related to raising a baby. These will vary for everyone, but all of these are flexible so you can save money.

You may be thinking - “What about the crib, toys, and other gear?” Well, in the next post we’ll look at gear and figure out what you actually need vs. what you may just want. Most baby gear is totally unnecessary, so if you really need to cut costs the next post is just for you - stay tuned.