Ages 0 to 2

Your child is babies and toddlers.

The most expensive stretch per year that most families will face, and the one with the least sleep. Costs concentrate in childcare, feeding, and diapers.

What matters now

  • Childcare is usually the single largest line item, often larger than housing.
  • Feeding and diapering costs are predictable, which makes them easy to plan and easy to cut.
  • One parent stepping back from work costs far more than the lost salary alone.
  • Your household budget is being reset, not just adjusted.

What to do now

  1. Price your actual local childcare options before assuming you know the number.
  2. Run the real comparison between daycare and one parent at home, including lost retirement contributions.
  3. Set a diaper and feeding budget once, then stop re-deciding it every week.
  4. Check whether your employer offers a dependent care FSA.

What to start preparing for

  • Childcare costs shift again at preschool age, usually downward.
  • Moving from formula or breastfeeding to table food changes the grocery line.
  • If you plan a second child, overlapping childcare is the number to test now.

What you don't need to worry about yet

Parenting advice rarely tells you what to ignore. At this stage, these can genuinely wait.

  • Allowance and money lessons
  • College savings, if the childcare bill is straining you right now
  • Screen time rules beyond keeping screens minimal
  • Chores and responsibility systems

Common decisions at this stage

  • Daycare, nanny, family care, or one parent at home
  • Cloth or disposable diapers
  • Formula, breastfeeding, or a mix
  • When to return to work

Skills to build

  • Sleep and feeding rhythms you can actually repeat
  • A basic household routine that survives a bad night

Useful calculators