Finding out you’re pregnant can come with a mix of emotions, from excitement to how-in-the-world-can-I-do-this feelings. One common concern new parents experience is wondering how to financially afford a baby, or in some cases another baby. The economy currently is a challenge for most adults, and especially for young adults. If you’re questioning how much it costs to raise a baby, today we can dig into what’s true and what’s a myth, and ways to be frugal as a new parent.
Myth: it costs half a million dollars to raise one child.1
There are varying estimations out there on how expensive it is to raise a child. Truthfully, child-rearing is not cheap. However, the half a million dollar estimate assumes a certain amount of extra-curricular activities for your child. It also doesn’t take into account the factors that go into having multiple children, such as the fact that subsequent children can use hand-me-downs for most things after you’ve had your first child.
The initial birth or adoption of a child is going to be a bigger chunk of change than most new parents expect, but there are tools that can help with that cost. Depending on your income, you may qualify for OHP which fully covers labor and delivery costs. Your state may also offer financial assistance for adoptions as well.
Other financial assistance programs that you may be eligible for include:
- SNAP program (Supplemental Nutrition Assistance Program)
- CHIP (Children’s Health Insurance Program)
- WIC (Women, Infants, and Children program)
The truth is that while raising a child or multiple children is not cheap, there are ways to make it more affordable, from affordable childcare options to lifestyle habits that will save money in the long-run.
Childcare Options
One of the top three expenses relating to child raising is childcare.2 There are options for making this more affordable. First, some workplaces or colleges provide free childcare for children up through age 5. Some childcare or caretaker jobs allow you to bring your child with you to work. There are low-cost daycare assistance programs for those financially eligible, such as through HeadStart. If you have family local to you, you may be able to arrange family assistance in childcare. Or you and a friend could arrange work schedules to help each watch each other’s children.
Depending on your situation, it may be beneficial to look into having you or your partner stay at home with your child until he or she is school aged, as some families have found that more cost effective than having both parents work and paying for childcare. Some parents are able to stagger their working hours so that one parent is usually able to be home with their little one, reducing the need for outside childcare.
Another cost-effective childcare option is a daycare co-op, where parents collectively help each other with daycare. These programs are low-cost or no-cost depending on how they are set up, but they do require a time commitment for parents. If there is not a local daycare co-op in your area, you can partner with other families in the community to start one. Make sure you weigh the time commitments required for a co-op to determine if this option is right for you.
Alongside finding affordable childcare options, there are many other small changes you can make to help you save money as you prepare for a new baby.
Saving Money on Baby Needs and Child-Raising
- Plan to breastfeed your baby, if able. Not only is breastfeeding free, it provides your baby with natural antibodies that help support your baby’s immune system.
- Share your baby registry with friends and family. This can greatly help with the cost of new baby items!
- Depending on your financial needs, some local organizations can help provide diapers and wipes for your little one.
- Apply for Paid Leave Oregon so you can have a paid maternity or paternity leave when your baby arrives.
- Buy thrifted baby items. Babies outgrow clothing, toys, and cribs quickly, so finding thrifted items can be easy, more affordable, and still in great condition. As your child grows, continuing to thrift will save money, and so will passing hand-me-downs around between family and friends.
- Know that your child doesn’t have to play multiple sports a year. If your child is interested in baseball, don’t feel like your child also needs to do golf and football.
- Decide/discuss with your partner whether you plan to pay for all your teen’s expenses or if you will encourage your teen to get a job and learn to pay his or her own car and phone bills themselves and whether or not you plan to help pay for your child’s college. Once you know how you want to raise your child as they enter into teenage and young adult years, you can save accordingly. A Trump Savings Account for children born between 2025 and 2028 may help you with saving for your child’s future.
- Find inexpensive family activities and entertainment options, like frequenting your local library, hiking in nature, etc.
- If you don’t qualify for OHP or OHP Bridge, a health-share alternative to insurance can reduce your health insurance bill, depending on your family’s healthcare needs.
- Moms.gov offers resources and information to help new families, including lowering the cost of prescription medications.
Other General Money Saving Tips
- Keep track of your budget. Knowing where your money is going will help you decide what is essential and what you can swap out or reduce financially.
- Buy generic rather than name-brand options.
- Have an emergency fund set aside. Aim to set aside three to six months of your average living expenses in case of any unexpected emergencies.
- Make most meals at home, and take your coffee to-go from the house. You can save a lot this way! For example, if you stop for a $5 coffee each day on your way to work, and you work 5 days a week, 50 weeks per year, that adds up to $1,250 per year spent on coffee. However, if you brew that coffee at home, you’ll spend more like $1.25 on the upper end, but that could be even less depending on the price of the coffee beans and what you like to put in your coffee, which, for the same work week, work year calculations takes us to $312.50 a year spent on coffee, saving over $900 per year on coffee. Similarly, if you do your own cooking for the majority of your meals and your child’s meals as well, you will save money in the long run.
- If you have a smoking or vaping habit, working towards quitting will not only be healthier for you and your baby, but it can save you anywhere from $500 to $3,000 a year depending on your current habits. Smoke Free Oregon has free counseling and resources available to help you quit.
- Grow a high-yielding crop garden. Plants like tomatoes, carrots, and spinach produce a large harvest and can save some money on produce. If you don’t have space for a garden, look into joining a community garden.
- Keep your home temperature within 68-70 degrees during the winter and 75-78 degrees during the summer. When you’re out of town during the winter, reduce the temperature by five degrees, and when you’re out of town during the summer, raise the temperature by five degrees. The smaller the difference between the indoor and outdoor temperature, the more you save. Please note that it’s recommended that the house temperature be no lower than 68 degrees when you have an infant, even at night.
- Keep your lights off as much as possible during the day to lessen electricity bills. You may also be eligible for assistance in paying utilities.
Raising a family in today’s economy can be a challenge, but with a little ingenuity and determination, you can make the financial decisions needed to raise your new (or another new!) little one.
Works cited:
1: Maryalene LaPonsie. “How Much Does It Cost to Raise a Child?” US News & World Report, U.S. News & World Report, 2020, money.usnews.com/money/personal-finance/articles/how-much-does-it-cost-to-raise-a-child.
2: DeMarco, Jacqueline. “Average Cost of Raising a Child to 18 per Year.” SoFi, 5 Feb. 2025, www.sofi.com/learn/content/average-cost-of-raising-a-child-to-18/?msockid=22250173835360da28ee1725820761b8. Accessed 19 May 2026.