Photographer: Mayte Torres/Getty Images

Having a Baby Never Cost So Much

This week on Material World: They say having a baby changes everything. That includes your finances.

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Every other week, hosts Jenny Kaplan and Lindsey Rupp guide you through the consumer universe, breaking down what's going on with all the things people buy.

Having a baby costs more than ever. Average American parents will pay about $245,000 to raise a child born in 2013 to the age of 18, according to the U.S. Department of Agriculture. And that's just for the basics!

It isn't just higher costs that are changing the business of raising babies, industry experts tell Jenny and Lindsey in this episode. These days, new parents rely more on technology, care less about brands and are more attuned to product ingredients than previous generations. Since people are waiting longer to have babies, they generally have more resources and plain old know-how when they do.

Moms and dads with prior business experience are getting into the game themselves, creating even more competition. Mainstream companies such as Johnson & Johnson, once the only option for new parents, are struggling to keep up with changing demands as customers flock to upstarts like the Honest Co. for products they can trust.

 

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