How Much Should You Budget for Twins?

When I found out I was having twins, I initially resigned myself to a lifetime of debt, especially after reading that the average cost of raising a child was $1 million. Thankfully, that million-dollar estimate is exaggerated. But just how much does it cost to have twins?

In its 2017 report, the U.S. Department of Agriculture (USDA) estimated that middle-income families who have children spend approximately $233,610 from birth to age 17 (previous years fluctuated by about $10,000). The average cost per year breaks down to $12,980 for each child.

Add in the cost of inflation and the final number will likely be even more than this. Indeed, non-profit financial think tank The Brookings Institution estimates that the cost will actually be $310,605 per child from birth to 17 years.

While those figures are less intimidating than the million-dollar number, they're still jarring for families with twins. That's why any parent having multiples should set—and maintain—a budget.

Below, we break down how much it costs to have twins. We will also explain factors to consider when budgeting for insurance, food, breastfeeding and formula, diapers, child care, education, clothing, and gear.

How to Budget for Twins

When creating a budget, the first step is to consider your income, says Justin Nabity, CEO and founder of Physicians Thrive. Nabity suggests calculating everything both parents are bringing in, including earnings and bonuses, and setting that figure at the top of your budgeting spreadsheet.

From there, list all expenses into categories—such as food, entertainment, clothing, household, diapers, and child care—and put down your spending, or an average for items that vary, alongside each item.

If creating a spreadsheet doesn't feel intuitive, twin mom Rachael Burns, CFP and founder of True Worth Financial Planning, recommends exploring alternative options, such as budgeting apps. "I encourage people to try to find an option that works best for [them] and try to have an awareness of how much they're spending, so if there's an area where you need to cut back or you need to free up cash for savings, you know which areas you can take it from."

Health Insurance

Insurance is far from a sexy topic, but it's a necessary one, especially when budgeting for twins. How much you pay will vary depending on where you live, the type of coverage you choose, and whether your plan is employer-sponsored or from the marketplace.

A study from the 2021 Milliman Medical Index found that the average family of four spends $28,256 in health care costs each year with an employer-sponsored PPO plan. Meanwhile, families of four with unsubsidized health care paid an average of $16,776 in annual premiums and had a yearly deductible of $8,440, according to eHealth's August 2021 ACA Index Report on Unsubsidized Customers.

But many parents don't realize that their insurance doesn't have to all come from the same place, says twin mom Natalie Diaz, who founded Twiniversity and is the author of What to Do When You're Having Two.

"[My husband and I] both have to pay our own health insurance, but my kids are on a different health insurance plan because kids are so much less expensive," says Diaz. She estimates that her family saves $800 per month by taking an unconventional approach. (Of course, staying on the same plan could be cheaper for your family, so make sure you compare rates.)

There are other ways to save, too. Pre-tax accounts such as flexible spending accounts (FSAs) and health savings accounts (HSAs) can be used to cover co-pays, medications, first-aid kits, and even sunscreen—up to $3,050 and $8,300, respectively. And under the Affordable Care Act, insurance companies must cover well-baby visits, gestational diabetes screenings, and more. Always check to see if your care is mandated.

In addition to health insurance, Diaz stresses that families should also figure out if it's possible to have a life insurance policy. "As far as budgeting goes, that should be a deal-breaker."

Food

Having multiples eats away at your budget—literally. However, there are lots of strategies you can use to keep your grocery budget in check each month, says Burns. For starters, she cautions not to fall into the "bulk trap." Reserve bulk purchases for items you go through consistently, and always be sure to check prices elsewhere—bulk doesn't always come with a cheaper price tag.

Familiarize yourself with the products you most frequently use and the prices for each at various grocery stores, says Burns. "Pay attention and to do the majority of your shopping at a discount grocery store and save the specialty items for more expensive stores."

Another thing to watch out for is the allure of the single-serving snack. Think about what you can prepare—whether that's blending your own purees or simply divvying up crackers from a family-size bag into reusable snack containers—and reserve the prepackaged convenience items for special occasions.

That said, parents need to be realistic about what you're capable of and budget accordingly, says Diaz. If you hate cooking and you only want to buy four rotisserie chickens from Costco, that's fine, she says, especially if it prevents you from ordering out.

If staying within budget at the grocery store is difficult, Diaz suggests buying a gift card to limit yourself without the hassle. Another option is to place a pick up or delivery order, especially at stores where the fee is waived. This way, you can remove items until you are at your budgeted amount and not worry about going over.

The USDA offers a number of tips for feeding your family nutritious food on a budget. One suggestion is to search the internet for local delivery of inexpensive fruits and vegetables. You also can join the Community Supported Agriculture (CSA) program and get produce from farms in your area.

Diapering

Whether you use cloth or disposables, parents of multiples can never have enough diapers—truly. When my twins were first born, we easily did 20 changes a day. Big Diaper knows that you need them, and they know you'll pay a premium.

"We estimate that the average twin family will spend $7,800 on diapers through the age of 4, and that's not even using top-shelf diapers," says Diaz.

Costs of diapering vary widely, so it's important for parents to research all of their options. Cloth diapering can seem costly upfront (could be upwards of $600 for all supplies), but could save you money in the long run. If you go the cloth route, you have to decide if you're washing them at home or sending them off to a service. If you're using disposables, decide on which kind: conventional, unscented, sensitive, or biodegradable.

Pick the method that works for you and your babies, and budget for slightly more than you think you'll need each month. Do the same for wipes. Diapering is an area where buying in bulk makes sense, says Diaz.

For parents who want to cut costs while also occasionally enjoying the convenience of a disposable, Diaz recommends trying a hybrid diapering approach. "If you could use cloth diapers, you will save thousands upon thousands of dollars, even if you only do it during the day and use conventional diapers at night."

Breastfeeding and Formula

Even if you never bottle or formula feed, breastfeeding still has costs. It's an investment that requires many hours, physical and mental energy, and time management, especially if you have another job.

What's more, you may notice an increase in your grocery bill. Breastfeeding one child burns a significant number of calories each day, and with two or more, you'll need to maintain a nutritious diet to fuel your supply. I saw an increase in my grocery bill per month long before my twins even started solids.

Those who are formula feeding will likely spend as much as $2,400 to $3,000 ($1,200 to $1,500 per baby) in the first year alone, according to older data from the U.S. Department of Health and Human Services. Of course, these estimates will vary based on brand and type of formula, and inflation also affects the numbers. In 2023, the Yale School of Medicine, predicted that a year’s supply of formula might cost up to $4560 for twins (up to $2,280 for each infant).

There are ways to save when feeding twins, though. Purchasing in bulk, finding coupons, signing up for rewards programs, and asking your pediatrician for free samples can help cut costs that add up over time.

Diaz says you also could cut costs by trying a hybrid formula-and-breastfeeding approach. Even just breastfeeding once a day could save a few dollars a day.

Note that, under the Affordable Care Act, health insurance plans are required to pay for breastfeeding supplies and support. This means that your breast pump and supplies should be covered, although some insurance companies may require a health care provider's recommendation. Talk to your insurance company to see what's needed ahead of time so that you are set before your babies arrive.

Child Care

In 2013, Care.com estimated that families will pay $284 per week for an infant in daycare, and $229 per week for an infant in a family care center. There's also the option of hiring a nanny to work in your home. According to the International Nanny Association, the median hourly rate for a nanny was $25 per hour in 2022.

If you hire a household employee, you'll need to factor insurance and taxes into your monthly budget as well. Families who know they will spend a significant amount on child care should contribute to a dependent-care account, says Alex Williams, a Certified Financial Planner and CFO of FindThisBest. These accounts are tax-free and available through many employers, he adds. Talk to an accountant or financial planner to find out what works best for you.

Clothing, Gear, and Toys

Babies and kids grow so quickly, and keeping up with the constant demand for clothes, toys, and gear can feel overwhelming. But when it comes to monthly spending, narrow in on the essentials.

For twin babies, you can buy swaddles, easy-to-change footed onesies (remember, you're going to feel like you're always changing diapers), hats, bottles, cribs or bassinets, car seats, and burp cloths. For toddlers and older kids, purchasing mix-and-match pieces that can be worn across seasons can reduce costs and save you from the stress of getting them dressed every day.

Also, remember there's no reason not to get hand-me-down clothes, says Diaz. Shopping at consignment stores, joining local parent groups, signing up for your local Buy Nothing group, or starting a clothing and gear exchange are great ways to reduce monthly spending, get great new-to-them gear, and meet parents nearby.