Taking care of a baby costs roughly $1,200 per month, but it can vary considerably between families. Diapers and formula may be some of your biggest expenses. Babies also need clothing, which they grow out of every few months. Cribs can be expensive, but it's also safe for a baby to sleep in a play yard, which costs much less. Paid childcare is another major cost for many families, whether that's a nanny, a home daycare, a daycare facility, or one parent staying home to care for baby while the other works.