If you’re expecting a baby or just beginning to think about expanding your family, it’s an exciting time for you and your partner. It’s also a crucial period to start preparing and budgeting for the new responsibilities and expenses that come with parenthood. From medical bills and diapers to toys and childcare, the costs can add up quickly. Fortunately, there are practical steps you can take to ensure you’re financially ready. Below, we’ll share five top tips to help you save money and manage the expenses of welcoming a new addition to your family.
Key Points
• The average cost to give birth in the U.S. is around $18,865, with out-of-pocket costs around $2,854 after insurance.
• Parents should start saving early and use the nine months of pregnancy to stock up on essentials.
• Cutting discretionary expenses can help manage the financial strain of a new baby.
• Health savings accounts (HSAs) can provide tax benefits and cover medical expenses.
• Automating savings and choosing an online bank with a higher APY can help new parents reach their savings goal faster.
The Costs of Having a Baby
The exact cost of having a baby varies depending on health insurance, local cost of living, level of prenatal care, and a number of other factors. But according to the most recent data, the average cost to give birth in the U.S. is around $18,865. If you have health insurance, however, your out-of-pocket costs can run around $2,854. On top of that major expense, you’ll also need to have plenty of cash available to buy baby gear and supplies, along with clothes, toys, and (potentially) childcare after the baby is born.
For couples who conceived naturally, without the added costs of fertility treatments or adoption, that first expense might include a trip to the pharmacy for a pregnancy test. From there, they grow to include prenatal care for mom and baby and an ever-expanding checklist of purchases, to-dos, and decisions—all within the next nine months or so.
Here’s a look at some of the common expenses that can crop up, from pregnancy through baby’s first birthday.
💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.
Before Birth
Parents-to-be may find that some of the biggest costs of having a baby happen before the baby is born. Prenatal care, for example, can begin within weeks of conception. It can bring associated diagnostic tests. Regardless of health insurance, extra services like 3D ultrasounds may not be covered.
A typical parent-to-be might also have a shopping list that includes a car seat, stroller, crib, diapers and wipes, a changing table, clothes, toys, a baby monitor, bottles, and more.
Depending on mom’s preference for breastfeeding or formula feeding, the list might also include a breast pump and related supplies or formula (or sometimes both).
During Birth
As mentioned above, the average hospital bill for having a baby is around $18,865, and $2,854 after insurance. But that number can vary depending on the type of delivery. Vaginal births are usually the most affordable, with costs increasing alongside complications or procedures like c-sections, and actual costs swing widely by state.
After Birth
Once mom and baby leave the hospital, there are ongoing medical expenses. For mom, it can include postpartum doctor visits to monitor healing or remove stitches, and for baby it can include regular, frequent checkups, starting within three to five days of birth.
If both parents decide at some point to return to work, the cost of daycare might be the next large, recurring expense. Combined with spending on groceries, bills, and other aspects of pre-baby life that still go on, the thought of managing it all might feel overwhelming.
Here are some ways it’s possible to cut corners, get creative, and save money.
Finding Extra Money for Baby
More and more employers are offering paid maternity (and paternity) leave, but beyond 12 weeks of unpaid leave offered by the Family and Medical Leave Act (FMLA), receiving pay while caring for a newborn isn’t guaranteed. For many Americans, that means saving up for a baby is more important than ever.
Facing a heap of new expenses while at the same time losing income may be a scary thought, and getting through it could require a heart-to-heart between partners and a lot of teamwork. But here are some strategies that may help budget for a baby.
💡 Quick Tip: An emergency fund or rainy day fund is an important financial safety net. Aim to have at least three to six months’ worth of basic living expenses saved in case you get a major unexpected bill or lose income.
1. Starting a Stockpile ASAP
One way to save early and often is to think of those nine months between the start of a pregnancy and the due date as time to stock up and save. Consider the financial difference between adding one box of diapers or wipes to a regular grocery trip vs. waiting until the baby arrives.
Adding items to your inventory a bit at a time — especially when they’re on sale — could be a lot easier on the wallet than an emergency trip when they’re needed ASAP. The same strategy could be used for cash, too. Every day, week, or month, you may want to set aside extra money in a high-yield savings account. Having a specific account dedicated to baby’s needs could mean that the regular budget for paying bills and other grown-up expenses isn’t as heavily affected.
Increase your savings
with a limited-time APY boost.*
2. Cutting Extra Costs
If a new, baby-friendly budget is in the works, parents might want to consider ways to cut costs — starting with areas that are the least painful. A good way to do this is to scan the last few months of financial statements, make a list of your regular non-essential expenses, then look for places where it may be easy to cut back on spending. For example, you might decide to cook at home more often and spend less on take-out, get rid of a streaming service you rarely watch, or ditch a gym membership you rarely use. You can also look for cheaper ways to shop. Consignment and second-hand stores are often filled with gently used baby items, from outgrown clothes to books, which can yield savings.
💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.
3. Opening a Health Savings Account
A health savings account (HSA) is usually offered alongside a high-deductible health plan (HDHP), and can provide new parents some significant perks: Money that’s placed into the account is pre-tax (and can include employer contributions), and it can be used to cover out-of-pocket medical expenses, such as office copays. If the HSA provider issues funds via debit card, it’s one easy way to keep health expenses entirely separate from the day-to-day budget.
But it’s not just doctor’s visits that are covered by HSA funds. Depending on individual plans, some can also be used to pay for health memberships, chiropractic treatments, breast pumps, and other items not covered by regular health insurance.
And while HSAs are traditionally offered through employer health plans, freelancers and other self-employed workers may be eligible to open an account, too.
4. Getting Creative
A newborn’s essentials list may be significantly shorter than mom’s and dad’s: They need diapers, clothes, food, a safe place to travel and sleep, and parent cuddles — that’s about it. The rest? The fancy diaper bag, the 100-in-1 stroller, the matching outfits, even shoes before the baby leans to walk, can be more like nice-to-haves.
To save money on needs vs. wants, parents could consider putting “gift” items on a baby shower registry — if they’re purchased, great! No unnecessary strain on the budget. It’s also worth asking friends and family who are out of the baby stage for hand-me-downs that are still in good condition.
5. Putting Your Savings to Work
One way to afford a baby is to make your money work harder. For instance, pay attention to where you keep your savings. When comparing traditional vs. online banks, you may see that online ones can offer a better deal. Since these institutions don’t have brick-and-mortar locations to staff and maintain, their operating budget may be lower. They can pass those savings on to their clients in the form of higher annual percentage yields (APYs) and lower or no fees.
The Takeaway
The cost of having a baby can run over $2,800, even if you have decent health insurance. And that number doesn’t include expenses involved in outfitting the nursery and caring for your child once they come home.
To make sure you manage the financial side of parenthood, it’s a good idea to consider what expenses lie ahead, come up with a budget, and see where you can economize. Having the right banking partner can also help you manage your money well as your family grows.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
How much money should you have saved before having a baby?
The amount you should save before having a child depends on your insurance coverage, location, and personal circumstances. As a general rule of thumb, some financial advisors recommend having at least $20,000 to $25,000 in savings before having a baby. This can cover the average pregnancy/delivery costs and essential baby items, plus offers a cushion for unexpected medical expenses or disruptions in income.
How do I invest $1,000 for my child?
To invest $1000 for your child, consider opening a custodial account or a 529 college savings plan. Custodial accounts offer flexibility, allowing you to invest in stocks, bonds, or mutual funds, while 529 plans provide tax advantages for education expenses. Research low-fee, diversified options and consult a financial advisor to align the investment with your child’s future needs and your tolerance for risk.
What is the best way to start saving money for a child?
The best way to start saving for a child is by setting up a dedicated savings account or a 529 college savings plan. Create a budget to identify areas where you can cut expenses and redirect funds into the new account. You might also automate monthly contributions to make saving consistent and effortless. Consider high-yield savings accounts or low-fee investment options to grow your savings over time. Regularly review and adjust your savings plan to stay on track.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOBNK-Q225-077