On average, it costs about $12,680 each year to care for a child from birth through age 2. Your costs may be on the higher side if you need to use child care, which ranges from around $5,000 to $24,000 annually depending on your location. Other expenses include diapers, clothing, and food (if you opt to formula feed them and/or once they start solids). While you're expecting, research medical insurance, which can help control costs for your baby's hospital delivery as well as visits to a pediatrician and dentist.