First-Year Expenses: A Basic Overview
Let’s break down the expenses for the first year.
Whether you choose disposable or reusable diapers, you still have to pay for diapers – a major necessity. During the first year, you will need more diapers when you first have your baby than later in the year. However, diapers are not the only thing that will set you back financially.
You also have to account for the items that go along with diapering. These ancillary props may include wipes, a changing station, diaper bin, and diaper cream. According to the national average, you will pay about $900 alone for this cost annually.
What you spend on feeding, depends on whether you opt to buy formula or breast-feed. While it costs more to buy formula, you still will need items, such as a breast pump and bottles and breastfeeding pillow if you opt for the alternative. The amount you spend, on average, ranges between $750 and $1,000. So, feeding your child only milk can be quite costly.
Once your child begins eating food, after 6 months, you can expect to spend, on average, about $25.00 extra each month. You also have to factor in costs for baby clothes (up to $1,000 per year) and other accessories, such as a bassinet, crib, and blankets.
When you are supporting a dependent child, you need to take out life insurance as well. Your children rely on the income you earn, so having a policy will prevent financial hardships should you pass away. If you are young and in good health, expect to pay about $40 per month for a term policy. That type of coverage will cover the costs of your funeral and pay off your mortgage as well. Policies offer different options, so you should compare carefully.