# how much money does baby cost?



## joncnca (Jul 12, 2009)

how much money should a couple have stockpile beforehand to feel relatively prepared for the first year after a child is born?

thereafter, how much will it costs annually to sustain this child?

i've read about 10k for the first year, including one time expenses.

thanks!


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## CanadianCapitalist (Mar 31, 2009)

It depends on your circumstances. If the mom was working, there is the opportunity cost of staying at home initially. Thereafter there is the cost of daycare (assuming mom goes back to work). Those are the two big ticket items.


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## joncnca (Jul 12, 2009)

what would be an estimate in each scenario?


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## colossk (May 11, 2011)

I'd say about 15k-20k per year per child is a good average. First year probably closer to the 15k range.

We have 3 kids. I probably spend about 50k/year year after tax to raise our 3 kids. My wife and I joke we could have retired by now if we didn't have kids.

*Daycare* -$1,800 per month (1 Child is in school, so only paying daycare for 2)
*Formula & Food *- $400/month
*Diapers*- $150/month
*RESP* -$500/Month
*Kids Toys *-$50/Month
*Kids Activities*- (Soccer, Dance Swimming etc) $300/month
*Clothing- *$250/month (Kids grow like weeds and destroy/outgrow clothes very quickly and the start of a new season is really expensive, 3 pairs of running shoes, 3 snowsuits, 3 winter jackets etc, 3 fall jakcets, 3 spring jackets, 3 indoor shoes for shool,3 rainboots list goes on and on, soccer cleats etc
*Xmas, Bday gifts Parties*- $200/Month (Figure 500 per child on Xmas, 100-200 for Bdays, plus the cost of the bday Parties, plus all the invites your child gets where you need to spend $25 on a gift for their friends bday etc
*Misc crap*- $200-300 Haircuts, Allowances, Shool Trips, School Supplies, Basically All the little things you need to buy that are not major purchases but add up
*The Hidden Costs *- $300/Month (3 Kids mean a larger Home which = Higher Mortgage, Higher Property taxes, Higher Utilities etc, Larger Vehicle, etc)
*One Time Purchases*- $200-300/Month (Cribs, Playpens, Strollers, Diaper Bags, Soothers, Babby Bottles, Furnishings for Babys room etc)

I'm sure there are things I'm forgetting atm but basically I've seen articles throw around $250k-300k per child up till the age of 18, I used to think that was ridiculous but its probably very acurate


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## cannon_fodder (Apr 3, 2009)

From Moneysense

http://www.moneysense.ca/2011/08/10/the-real-cost-of-raising-kids/


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## Daniel A. (Mar 20, 2011)

It can cost as much or little as you want.

There are many ways to cut costs, some can't be avoided diapers & formula.
Much depends on your lifestyle and what you want.
Many costs have more to do with the parent than the child.


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## the-royal-mail (Dec 11, 2009)

It depends on if your household savings tiers have all been fortified with cash. Has that happened? Details in my sig file. </broken record off>

If your tiers are all fortified then I would go with the figures presented above. *Do not use emergency savings money for a planned child.*

I'm sure if you google for parenting forums and the like you'll find some more detailed responses there.


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## calrest (Apr 13, 2011)

I think it depends on your priorities. I vote for the optimal investment. Your baby need to have some "cultural" style for a living. On the other hand, I am not a fan of nit-picking.


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## Four Pillars (Apr 5, 2009)

If you don't have any daycare or formula costs during the first year, your expenses can be whatever you want (as Daniel said). Babies don't need much of anything that costs money with the exception of diapers and some basic clothes.

I wrote a whole series on baby expenses.

http://www.moneysmartsblog.com/baby-expenses-series/

Long story short - get as much used stuff as you can buy/receive and don't buy stuff until you need it.

There is a huge amount of used baby stuff in great condition out there. I normally shy away from buying used stuff, because it's too time consuming, but for baby stuff - it's just to easy too get it and it's always in great shape.


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## crazyjackcsa (Aug 8, 2010)

I come in far under Collassk. That's for sure. Per 1 child


*Daycare* -0 per month. We are talking about the first year here
*Formula & Food *- $100/month
*Diapers*- $70/month
*RESP* -$80/Month --- Not a requirement.
*Kids Toys *-$10/Month
*Kids Activities*- (Soccer, Dance Swimming etc) $0/month
*Clothing- *$50/month (Kids grow like weeds and outgrow clothes very quickly if there are kids in your extended family, you'll be swimming in hand me downs.
*Xmas, Bday gifts Parties*- $100/Month 
*Misc crap*- $50 Haircuts, Allowances, Shool Trips, School Supplies, Basically All the little things you need to buy that are not major purchases but add up (not if they are less than year old)
*The Hidden Costs *- $10/Month (3 Kids mean a larger Home which = Higher Mortgage, Higher Property taxes, Higher Utilities etc, Larger Vehicle, etc) (you probably already have a car and a home, I know we bought our place with that in mind, so it's not like it's an addition charge. There is small increase in utilities though, since you keep more lights on, and the house a little more comfortable
*One Time Purchases*- $500 TOTAL (Cribs, Playpens, Strollers, Diaper Bags, Soothers, Babby Bottles, Furnishings for Babys room etc (That's what baby showers are for.)

That brings my cost to the first year as about 5k. After that, perhaps 10k. I'm not sure why one needs such expensive daycare while a child is in school,


Not to throw colossk under the bus, but I think 15-20K a year is a terrible number. 3 kids does see an added expense compared to two I'll admit but not that much.

Don't get me wrong, you can spend tonnes of money on a baby, buying the latest and greatest do-dad and whizbang! Or, you don't.

We bought a house knowing we were going to have kids. And 3 or 4 bedrooms is the standard anyway, and kids can share rooms. So the bigger house is a moot point. So is the vehicle. You can get everything into all but the smallest cars. 3 kids fit fine in a standard minivan. 

In the first year, there aren't any lessons or classes or soccer to worry about. Birthdays aren't an issue yet either. And you don't HAVE to money aside in an RESP.

Also not factored is free cash from the government. Our family gets 400 a month for our two kids. That takes care of 1/3 my costs.

And keep in mind, cost per child drops as you have more. The second is far cheaper than the first.

How much does a child cost in the first year? How much do you want it to?


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## MoneyGal (Apr 24, 2009)

I have two kids, ages seven and nine. 

My expenses are much much closer to CrazyJackCSA. Keep in mind that daycare costs (if/when you have them) are tax-deductible (just like an RRSP contribution) against the lower-income-earner's salary (up to a yearly maximum based on the child's age). 

So, for a higher income-earner, the after-tax cost of daycare can be much lower than the before-tax cost.


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## Ihatetaxes (May 5, 2010)

Two young kids and right now I would say about $60k/yr but that includes an expensive Montessori daycare that cost us $3k/month. Once they are both in public school I would expect the cost to be around $30k/yr total.

Worth every penny, I love my kids more than anyone or anything else.


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## canadianbanks (Jun 5, 2009)

It depends on where you live. I'm in North Toronto and I can't tell you $10K/year is not enough for a full-day daycare alone. Of course I'm not talking about the first year, however after that and before school years you should factor it in your budget.


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## Plugging Along (Jan 3, 2011)

I think it really depends, I had an idea of what kind of lifestyle I wanted for my family. We planned for a large expenses for kids. This was not because we would spend it all, but rather, we could have the choice to do it. I put in more details so you can gauge where we're coming from and where the variations could be. 


Here's some of our costs for 2 kids (2 & 5)

*Childcare* - Live in Nanny $2000/month (Daycare is $1200-$1400/month/child here). We are only able to deduct 1/2 the amount because of the limits, I guess if we had 2 more kids, we could deduct most of it, but then we would have two more kids

*Formula & Food *- $150/month/child, we spent less than $100/baby their whole life. If the mom chooses to breastfeed, it can save over $2000, this also saves on the number of bottles, etc. We only bought some formula because of medical reasons for my first. My two little ones, don't each much so I factor that on the fact is they go through much more fruit and veggies than we did as two adults. I didn't factor in how much we feed the nanny
*Diapers*- $50/month, I always stocked up and bought on sale. I bought 60 Boxes/bags of diapers when there was a crazy sale, so spent less than $600 on diapers for the second child, We are still using the diapers. Also, I started putting my babies on the toilet at 6 months old, they buy 12 months, both of them had cut their diaper consumption by 40%

*RESP & In trust account* -$500/Month/child
*Kids Toys *-$25/Month - This really varies for us. If I include books, it might be this much. Most of their toys come at birthdays and christmas. We have overly generous friends and family. My oldest got her first bike this year, but she paid 1/2 with her savings, and a gift card from the dentist, and I pay $30. I am sucker for books, and its' actually my daughter first choice over toys

*Kids Activities*- (Soccer, Dance Swimming etc) $200/month/child - Our youngest maybe spend $100 , our oldest is about $300 and we have here in 4 activities. The private ones are the most expensive, and the city offered are the cheapest. There are also many free programs. I have purposely not signed up my daughter for a dance studio (it's the most expensive activity out there), but we are being told from her city instructors that she has talent, and would benefit. We're still deciding. It's another $200/month plus uniforms, and shoes if we do that. 

*Clothing- *$100/month/child We buy all of our stuff on sale in the US, have no hand me downs. I do have two girls, so the second actually gets very little in terms of new clothes, except shoes, boots, and special occasion clothing

*Xmas, Bday gifts Parties*- $100/Month/child Xmas is about $300, birthday and party is closer to $500, we have a lot of kids parties, so at least 1 a month at $20 (I buy my presents in bulk for the year when on sale)

*Misc crap*- $200-300 Haircuts, family pictures, all the other little things. 

*The Hidden Costs *- The house we bought, we though would be for the kids, however, we never factored in a nanny. We are debating a larger house, but that's really a want, not a need. 
Larger vehicle - we did, and our next one will be larger too, plus we bought a car for the nanny to drive our kids. 

*One Time Purchases*- $2000-(Cribs, Playpens, Strollers, Diaper Bags, Soothers, Babby Bottles, Furnishings for Babys room etc) We got a lot given to us, but I am sure it would have cost well over $2000 initially. Again, I gave all my stuff to my sister in law, so they spent hardly anything. 

Other things not mentione on the list, and are option, but things we spend on
*Family Memberships -[/B] $400/year - passes to the zoo, and an amusement park, science centre. etc (we don't get all of them every year, but rotate usually two different ones)

Family Outings - $1000/ year/kid extra, food, vacations, movies, any activies that you go to now, and want to continue - Plane tickets are a killer after 2. 

School - - $600/month/kid ($500 year/kid for public) - we pay for private montessori, and this is one of our huge expenses. For us it's been well worth it 

Opportunity Cost - I lost 80% of my income for each year I was on mat leave



Daniel A. said:



There are many ways to cut costs, some can't be avoided diapers & formula.



Click to expand...

Just wanted to say that these both can be avoided, again it's a choice. 


My numbers are really high now and that is by choice. When we decided to have kids, we saved an extra $20K each time to cover off the lost of income and extra expenses, this was on top of my emergency fund. The first time I we spent most of it, mainly because we could, and that was what it was planned for. The second time, my spouse got laid off 3 weeks after our child was born with 1 week severance. We went down to less 15% of our household income for 7 months, before he could find another job. 

Honestly, that was the best wake up call for us (not that I would want to do that again). That's when I started to take our fianances and spending seriously and started lurking here. We cut down all the costs including non child related costs to almost nothing. The only thing in our budget was the things to keep the lights on (min mortgage payments, house hold bills), groceries which I got down from $1200/month to around $450, our nanny, and school. No more paying for entertainment, or anything that cost money. That's were I made all my wipes for the baby, didn't buy formula, and no clothes, etc. 

It's all about the type of lifestyle you want to have.*


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## Charlie (May 20, 2011)

Practically, our annual spending including a 7 and 9 yo really haven't gone up at all since our before-kids life. It may even have gone down.

Seems that what we spend on soccer/dance/kids stuff, is offset by less spending on parent stuff. We go to fewer ticketed big events, and more free community stuff. Instead of meeting friends at restaurants, we meet them at one of our homes. Dad's skis are no longer the latest model, his bike is over 10 years old. Parents clothing budget has shifted to kids. We are fortunate to live in a great neighbourhood with lots of kids so clothes, gear and the like are passed from one kid to the next...from one family to another. Except boys shoes which are pretty much destroyed by whomever gets them first. Neighbourhood baseball, street hockey and soccer games take the place of paid for organized events -- or weekend outings with their associated costs. We go to a lot of parks all over the region. It's been a lifestyle change more then anything.

The big hit for us was income. We dropped one -- and the higher one to boot. So income change and/or childcare cost is the big budget crunch. Only you can calculate how that affects your situation. The rest kind of takes care of itself.

We're fortunate in Canada that the public schools -- despite all their faults -- are pretty great. And there's lots of free and low cost stuff to do with kids. 

In year one, other then diapers and formula, you really shouldn't have to spend much. Kids don't need much. They don't wear stuff out. Friends will beg you to take their cribs/ toys/ baby clothes/ etc. Do it. (do check cribs and car seats for recalls and safety). 

So...stockpiling before hand to be prepared....enough to cover your lifestyle change -- be it reduced income/ childcare costs etc. But you'll never really be 'prepared..... The rest of it is lifestyle choices. And you can spend as much as you choose on lifestyle -- either with or without kids.


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## Plugging Along (Jan 3, 2011)

Charlie said:


> But you'll never really be 'prepared..... The rest of it is lifestyle choices. And you can spend as much as you choose on lifestyle -- either with or without kids.


Great last part... I was always one of those that wanted to be prepared, and waited until everything was as perfect as I could get. Even then there have been many ups and down. I think if one really wants kids, and is willing to make the sacrifices (whether personal, financial, career wise, or other), and they are stable (mentally, physically, emotionally, and fianancially), things don't have to be perfect.


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## cannon_fodder (Apr 3, 2009)

Just remember - _nobody_ puts Baby in a corner.


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## Sherlock (Apr 18, 2010)

There are people who make minimum wage and live paycheck to paycheck who have babies.

My parents had a combined income of less than 20k/yr when they had me (in the early 80s). I think at their peak just before retirement my parents were earning somewhere in the mid 30s combined. And they raised me just fine.

So the high figures you guys are quoting are not necessary.


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## Plugging Along (Jan 3, 2011)

I don't think anyone here said that any of it is necessary, all of it's by choice. OP wanted estimates and ranges. It's dependent on so many factors. 

There are many people on people on welfare that have children. You could have nothing put aside for kids, and I'm sure there will be enough subsidies to survive. I don't that's what the op has in mind. 

I think it is helpful that people post all the things that could possibly come up, and then one takes out what doesn't apply to them, or adjusts it based on their circumstances and what's important to them. I had no idea all the things that were out there for kids (way too much), but there are some things that seemed really outrages and now I see the value as parent. 

The only thing that is a must is a caraway, if you choice to commute in a private vehicle. You can find way to get lost everything else free.


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## marina628 (Dec 14, 2010)

I would say the biggest upset to your finances will be the day care cost or loss of an income if a parent stays home.For babies go to second hand stores like worth repeating for their clothes,toys etc ,$50 a month will go a long way there.My youngest will be 9 in January but I remember out entertainment went to zero the first year .I guess it also depends on how much family support you have close by too.


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## Jon_Snow (May 20, 2009)

Reading this thread has confirmed that my wife and I made a wise choice by remaining "childless". Some of the child care expenses listed here are truly shocking. No wonder the majority of Canadians have very little savings.


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## Daniel A. (Mar 20, 2011)

Jon_Snow said:


> Reading this thread has confirmed that my wife and I made a wise choice by remaining "childless". Some of the child care expenses listed here are truly shocking. No wonder the majority of Canadians have very little savings.



I take no issue with your comment it's fair but most of the decision around having children is anything but a financial one. If we all decided to have kids based on the financial reward its not there.


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## Plugging Along (Jan 3, 2011)

Jon_Snow said:


> Reading this thread has confirmed that my wife and I made a wise choice by remaining "childless". Some of the child care expenses listed here are truly shocking.* No wonder the majority of Canadians have very little savings*.


Kids are not the cause of people not having savings. There are many people with out kids that have very little savings, it just perpetuates when you have them. There are also many that have kids with great savings. 

That being said, childcare is really expensive, but it's just one of those things you find out about before you decide to have them.


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## Maybe Later (Feb 19, 2011)

I have to agree with Plugging Along. Kids can cost a lot if you let them and buy everything you're told you need and you buy new. There's a huge marketing effort at new parents. People could spend less if they chose to. I also found that the lifestyle change that kids brought on meant we didn't spend all that much more overall, just in different categories. 

It's like a MasterCard commercial: cost of kids to age 18, $300,000 (or whatever) .... Life experiences ... Priceless.


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## Jon_Snow (May 20, 2009)

I have to admit that our decision not to have kids was not a financial one alone... by the time I met and married a woman who I would feel good about having children with I was already in my late 30's... I didn't want to be raising children well into my 50's... its that simple. Right now we are on holidays in the Baja without a care (or a child's whine) in the world. Its all good. God bless those who have kids in our stead.


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## OhGreatGuru (May 24, 2009)

*how much money does baby cost?*

Have you tried eBay?


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## Sampson (Apr 3, 2009)

Maybe eBaby would be more appropriate.


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## Berubeland (Sep 6, 2009)

A baby costs nothing you don't spend on it. Especially a newborn...

You'll stay home a lot the first year, at least I did. 

It depends how much you and your wife want to spend, my hubby wants everything new, but it's not necessary.

I think it's natural that you want to spoil your kid rotten. 

The biggest cost is daycare if you go that route. I worked through my pregnancy and pretty much as soon as the baby was born...but I'm self employed and I have that type of job. 

The first year I used to bring my son to show apartments and I still do. He's great. I work after he goes to bed, I work before he's up, I work while he watches the tube, I take him on "adventures" 

One thing about being a parent is that it makes me a better person, failure is not an option, you want to be the best that you can be. This ranges from working harder to make money to support your family, to working on your frustration so you don't get mad at them. 

It's a fantastic journey, a baby is pretty lumpy, they kind of sit there and not do much for the first year...to see the baby transform to a active engaging 4 year old. 

Plus you'll discover new skills...for instance this Halloween I got to find out what a great zombie I am, how much brains I can eat, and how far I can walk...


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