If you’ve been diligently saving money to start a family, it can be challenging to determine how much is enough. What you may not have factored into your budget, however, is how much pregnancy, childbirth and postpartum care truly cost in America (with or without a health insurance plan).
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In the United States, the cost to give birth has skyrocketed and, unfortunately, there is no universal figure that fits every family. Money experts would advise you to have an emergency fund covering three to six months of living expenses, plus an additional $20,000 to $30,000 specifically earmarked for birth costs, hospital stays or other child-related bills.
Below are some total cost considerations and recommendations for how to save up before having a child.
Quick Take: How Much Does It Cost To Have a Baby in the US?
The cost of having a baby in the U.S. varies widely depending on where you live, your income level and more. Here are a few key takeaways:
- It’s estimated that a middle-class family with dual incomes can expect to spend somewhere between $285,000 and $311,000 raising a child born after 2015.
- Total average hospital bill for a regular vaginal birth with no insurance: $30,000
- Total average hospital bill with a C-section with no insurance: $50,000
- Total average hospital bill for a regular birth with healthcare coverage: $3,400 to $10,000
- In general, the cost to have a baby in a hospital can vary significantly but typically ranges from roughly $10,000 to over $20,000 for a vaginal birth and $18,000 to over $26,000 for a C-section, depending on complications, coverage and location.
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Try and Save for a Big Enough Protective Buffer
“Parents should target having $20,000 to $25,000 in savings before welcoming their first child,” explained Abid Salahi, finance expert and cofounder of FinlyWealth.
He said this covers typical pregnancy costs ($5,000 to $11,000 with insurance), essential baby items ($2,000 to $3,500), and a six-month emergency fund for unexpected medical expenses or income disruption.
“The biggest financial shock for new parents often comes from unplanned medical bills and reduced income during parental leave,” Salahi added. “Having $25,000 saved acts as a protective buffer during this major life transition.”
From his experience advising young families, he recommended breaking down this savings goal into three specific buckets:
- Medical expense fund: $10,000
- Baby essentials fund: $5,000
- Emergency reserve: $10,000
Pregnancy and Childbirth Are Just Really Expensive in America
In many cases, out-of-pocket costs for prenatal care and delivery can range from $5,000 to $15,000, depending on your coverage and any unforeseen complications. Then consider what it takes financially to set up a nursery, buy a car seat, pick the safest top-of-the-line stroller and constantly purchase diapers and formula.
Even pregnancy comes with some unexpected expenses such as special dietary needs, maternity clothes, prenatal vitamins and extra medical visits. All of these can add up to $3,000 to $4,000 tacked onto your budget before the baby even arrives. For this reason, you should be increasing your savings bucket amounts by 20% to 25%.
Final Take To GO: Save as Much as You Can
Aiming to save an additional 10% to 15% of your annual household income before the baby’s arrival can provide a comfortable cushion, especially when you consider the average cost of first birthing a child, then raising it. Developing this savings habit not only covers the anticipated expenses but also gives you a buffer for the unexpected twists that parenthood invariably brings, of which you can trust there will be many.
Cindy Lamothe contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Here’s How Much You Should Save Before Having a Baby
