What Is the Cost of Having a Baby?

For many expectant parents, one question looms above everything else: How much does it cost to have a baby? While you may be tempted to focus instead on more exciting things like decorating your nursery and buying baby clothes, cost is a critical consideration before the big day. The pregnancy itself is filled with costs that go beyond the many medical costs you may have. Therefore, it is important to ensure you have enough of a financial cushion before deciding to have a child.

If you’re preparing to grow your family, consider enlisting the services of a financial advisor.

Average Cost of Having a Baby

The cost of having a baby includes more than just the actual childbirth. What you pay will vary quite a bit depending on your insurance and the services you need. Additional costs include regular check-ups, tests and prenatal care associated with pregnancy.

The average price of pregnancy, delivery and post-partum care is $20,416 for those with health insurance, according to the Kaiser Family Foundation (KFF). KFF estimates average out-of-pocket payments to be $2,743. However, complications during birth, however, for vaginal or C-section delivery can increase the charges for childbirth.

While these costs help provide a guideline, they do not account for your specific health insurance so what you end up paying could dramatically differ. Some types of health coverage may pay the majority of the bill when you have a baby, while others may cover only a percentage of the total cost.

This comes into play pretty quickly when we look at the state-specific data.

The Cost of Having a Baby Varies by State

While the average cost of having a baby in the U.S. serves as a good guideline, prices can vary significantly based on where you live.

Several factors can influence the final costs of childbirth.

The state in which you live
Your state’s cost of living
Type of birth delivery
Type of health insurance

While the average costs of childbirth range anywhere from $15,712 to $28,998, there are two states that have the highest and lowest costs for vaginal childbirth: Nevada and North Dakota.

The most expensive cost of childbirth in the U.S. (including potential rent increases and child care for one year) is in Nevada, where costs total almost $50,000.
The state with the lowest childbirth costs is North Dakota, where prices average just under $20,000.

A below-average health insurance plan can also drive these costs upwards.

Click Your State to Get Matched With Financial Advisors That Serve Your Area

Choose your state and answer some questions to get matched with up to three fiduciary advisors that serve your area.

How Health Insurance Affects the Cost of Childbirth

Federal law mandates that pregnancy and maternity care be covered under health insurance plans.

This requirement, however, contains two key exceptions. The first is that you can stay on your parent’s healthcare plan up until age 26. This doesn’t have to cover delivery and newborn care, but it must cover pregnancy and maternity care.

How much of the pregnancy and childbirth costs your health insurance plan covers depends on several factors.

Coverage. The deductibles, copays and coinsurance, for your plan will significantly impact costs.For exact coverage, check your plan details or reach out to a benefits representative at your work or with your health insurance company.
Annual limits. Another factor that determines the number of medical costs your plan covers is how much money you’ve paid toward your out-of-pocket spending limit for the health plan year.
Provider network. Finally, the total costs covered are affected by whether or not your plan’s provider network includes the hospitals and doctors you’re using.

How to Save Before Having a Child

Planning for a baby requires a lot of preparation, but there are a few ways to get ahead.

For starters, determine whether your local hospitals accept your coverage. This way, you can estimate costs in advance so you are better prepared for the bill when the time comes.

You can also lower your cost of living by cutting back on unnecessary purchases. The more you cut back on things you don’t need, the more money you can dedicate toward childbirth medical costs. You can keep these funds anywhere that you would keep an emergency fund, such as in a high-yield savings account.

Finally, many people create a financial strategy for having a child. Just like saving for a short-term goal like a wedding or vacation, saving for a child involves largely stable costs that are not likely to decrease much between now and the actual birth.

However, remember that new costs will continue to sprout upas your children age.

Paid Leave, Time Off and Income Disruption

Medical bills are only part of the financial impact of having a baby.

A career break can reduce household income during pregnancy, recovery and early childcare. The size of this gap depends on employer policies, job type and whether leave is fully paid, partially paid or unpaid.

Some employers offer paid parental leave, while others rely on accrued vacation, sick time or unpaid leave under the Family and Medical Leave Act (FMLA). FMLA provides job protection for eligible workers but does not guarantee income replacement. This means families may face several weeks or months with reduced earnings even if employment is secure.

Short-term disability insurance can offset some income loss for the birth parent. These policies typically replace a portion of wages for a limited period following childbirth, with different coverage lengths for vaginal and C-section deliveries. Eligibility and benefit amounts vary by policy and employer.

Income disruption can also extend beyond the initial leave period. Reduced work hours, delayed bonuses or a temporary shift to a single income for a stay-at-home parent may continue to affect cash flow after returning to work.

Planning for these gaps alongside medical costs helps provide a clearer picture of the full financial impact of having a baby.

Bottom Line

Overall, having a baby can be both a joyous and life-changing experience. It’s amazing to embrace your newborn with loving arms, but with all the costs that lay ahead, you don’t want to break the bank in the process. It’s important to properly plan for the expenses that come with pregnancy and childbirth, while also keeping in mind that complications during birth can increase those costs.

Tips for Saving Money

If you’re considering having a baby, it can be helpful to talk to a financial advisor first. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One of the ways to best prepare yourself for the costs of having a baby is to make a budget. Write a list of your most important expenses and cut out other unnecessary purchases. In other words, separate the needs from the wants. Before you know it, you’ll have a bit of leftover money.
Consider placing this extra money in a high-yield savings account that can help you make the most of your savings. These are the best savings accounts available now.