Having a baby? Here’s something for you to consider: A baby’s first year could cost parents up to $16,000, according to a new study.
The study by BabyCenter, which calculated costs based on a variety of items needed for a baby, from childcare and formula to diapers and bibs and clothing, found that a baby’s first year could cost parents on average $15,775.
The biggest expense during a baby’s first year is childcare, which roughly costs about $6,500. BabyCenter also estimated the cost of childcare specifically based on a survey of 307 parents who use paid childcare.
“About a quarter of parents surveyed said that they’re holding on to debt, or postponing or even abandoning plans to pay off debt because of baby-related expenses.”
Moms who decide to stay at home to take care of their little one take a big financial hit: Unpaid leave costs moms $6,643 in income, on average.
Inflation only added to parents’ worries over costs: 54% said that they were worried about managing daily expenses due to inflation, and over half of parents also worried about the cost of raising a child.
Recession fears and concerns about financial stability also worried 52% of parents.
And — echoing the CDC data on U.S. births — these fears led 25% of parents surveyed to say they’re having fewer children. Another 25% said they’ve decided to pause or delay adding children to their family for the reasons above.
Got thoughts on the cost of parenting? Write to MarketWatch reporter Aarthi Swaminathan at email@example.com