The Real Costs of a Baby (Year One)

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Most people don’t add this up until it’s too late. Here’s what you’re really looking at:

 

Medical Expenses (Prenatal, Delivery, Postnatal):
$5,000–$15,000 without insurance. With coverage? You’ll still pay deductibles and co-pays—usually in the thousands.
 

Baby Gear Essentials:

• Crib, changing table, nursery setup: $1,000–$2,500

• Diapers, wipes, toiletries: $500–$1,000

• Car seat, stroller, carrier: $300–$1,500

• Breastfeeding/formula: $300–$2,000/year

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Childcare 
Daycare: $500–$2,500/month depending on your city.

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Health Insurance Premium Increase:
Adding your baby may bump up your premiums by $100+/month.

 

Miscellaneous Musts:
Baby-proofing, toys, pacifiers, monitor, books—expect at least $1,000+ over the year.

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A realistic starting point?

$12,000–$20,000 saved before baby arrives.

 

Example Breakdown:

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• Medical: $5,000

• Gear & Supplies: $2,000

• First 3 Months Childcare: $3,000

• Health Insurance Increase: $1,200

• Extras: $1,000+

 Total Goal: $12,200

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If you’ve got 9 months? That’s about $1,355/month. Too steep? Adjust the goal or extend the timeline.

 

Where to Park Your Baby Fund (High-Yield, Low-Stress)

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You want a separate account—not your daily spending pot.

 

High-Interest Savings Accounts (Canada):

• Wealthsimple Cash Account – High-yield + instant transfers

• EQ Bank Savings Plus – No fees, top-tier interest

 

High-Yield U.S. Options:

• SoFi High-Yield Savings – Bonus for direct deposit

• Marcus by Goldman Sachs

Set up auto-transfers monthly or with each paycheck.

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Shift your spending:

• Meal prep vs. delivery: Save $400/month

• Pause unused subscriptions: Use Rocket Money to track & cancel

• Secondhand gear: Local buy/sell groups or Facebook Marketplace

 

Life Insurance:
If something happens to you, what happens to your baby?
→ Get term life quotes with PolicyMe (Canada) or Bestow (U.S.)

Emergency Fund:
Cover 3–6 months of living expenses. Start small, build it.

 

 College Savings:
Even $50/month into a 529 Plan (U.S.) or RESP (Canada) grows into thousands by the time they hit high school.

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Final Word

Babies don’t care if you’re ready—but your bank account will. Most people wait until the third trimester to start saving. By then, it’s catch-up mode.

If you start now, automate your savings, and live slightly below your means, you’ll be ready for the joys (and bills) of parenthood.