Buffalo, NY (WBEN) The cost of having a baby in 2024 is expected to be close to $23,000, according to a study from "Very Very."
How can people cope with the cost? A local financial adviser says take a look at a couple of things to help plan our your affordability.
The biggest expense is the childbirth itself, said Brian Janak of the Financial Guys. "C sections cost more than a vaginal delivery, it leads to a longer stay in the hospital with the C section. So that's where the majority of that cost is coming from," said Janak. He adds that complications of childbirth also can add to the cost.
To best prepare, Janak says look at your health insurance plan, in particular the deductible. "A lot of times when people look at a health insurance plan, they just look at how much money is coming out of their paycheck or how much money they're paying every single month, they don't look at the next part of it, which is, how much am I going to have to pay out of pocket," explains Janak. He says high deductible plans are common. "When you go to the higher level plans, you not only have no deductible, but typically your copays or your coinsurance after the deductible is met is also lower," says Janak, He says look at taking the higher deductible plan if becoming a parent is in your future. "If you take the better plan, you're going to lower your risk. And by lowering your risk, you now take that financial burden out of the picture," recommends Janak.
He also says look at your flexible spending account (FSA). "You should be depositing money into the FSA. This will allow you to cover that deductible. So even if you're thinking 2, 3 years down the line from now about having a baby, look at what your out of pocket maximum is on your plan and say my out of pocket maximum is 7, $8,000. I want to try to get 7, $8,000. In my HSA account, for the year that we're going to be having the baby, I limit my financial exposure," adds Janak. He says the FSAs roll over from year to year and are not 'use it or lose it'.
Very Very came up with the figure based on three factors:
Childbirth cost: the average cost of giving birth in every state with insurance. The data is weighted based on CDC data for vaginal births at 67.9% and c-section births at 32.1%.
Rent increase: the average cost increase for upgrading from a one-bedroom to a two-bedroom apartment over the course of a year.
Childcare costs for one year: the average cost of daycare for one child for a full year.
