baby

Money Culture

From NYC to Boise, Babies are Pricey

If a new baby is in the works for the new year, prepare yourself now.

Despite the pure joy of having a child, the fact of the matter is that the basics – daycare plus a second bedroom, extra health insurance, food and personal items – are expensive even in Little Rock, Arkansas, which is at the bottom of Magnify Money’s new ranking of the cost of adding a family member in 100 U.S. major cities. Monthly expenses for an infant exceed $700 a month in Little Rock, or nearly $8,500 a year.

ranking list of most and least expensive cities

The big budget buster everywhere is day care, which is a financial shock for most new parents. The bills can easily reach or exceed $1,000 a month, and day care represents 70 percent to 80 percent of the money spent on a baby, whether the parents live in New York City, Birmingham, Alabama, or Boise, Idaho.

Magnify Money’s estimates do not even include the college savings parents should start socking away immediately. They do include the federal tax credits for children.

Click here to get a rough idea of what your new baby will cost where you live.

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2 Responses to From NYC to Boise, Babies are Pricey

  1. Hi Kim,

    Great post to start the New Year.

    Having a baby can feel very exciting, so exciting that most people tend to forget to properly plan and look into the cost of having a baby.

    This article will be of tremendous benefit to young couples and newlyweds.

    Thanks for sharing this.

  2. Ellis says:

    A neighboring young couple has two little ones, a baby and a toddler. The day care bill — not unusual, I am told — is $3,500 a month for the two.