Luke 18:17 Verily I say unto you, Whosoever shall not receive the kingdom of God as a little child shall in no wise enter therein.
First, I have to say, I love babies! I think they are the best thing that God created! They are just wonderful, but they DON'T have to be expensive.
There are many people having home births today which is a very frugal way to go, but if that's not for you, you can check into various other methods of child birth and birthing centers today that would help you keep the medical costs down.
Nursing? Breastfeeding is something that I think all mothers should try to do. Its very frugal and it is a very special time between mother and baby and its the most nutritious and healthy thing that you can do for your infant.Your baby not only gets an excellent 'formula' of milk, but your baby also gets immunities from you to help them fight germs!
Clothes? Clothing a baby doesn't have to be expensive either. Babies wear clothes such a short time that yard sales, consignments stores, and thrift stores are great places to prepare for the arrival of your little one, with clothes that look and may often be, brand new.
Its a good idea for new mothers to learn to always take hand-me-downs and gifts for babies. If someone gives you 2T clothes- take them and store them away! Your baby will grow quicker than you can imagine. If this is your first baby, save everything! I had many clothes (and still do) that all 5 of my boys wore!
Learn to sew! While you may never learn to be "great" (neither have I), you can learn to make basic items like pajama pants, blankets, slippers, hats, skirts, and so much more. You can also teach yourself to repair clothes. This will save you a bundle and it will likewise be a skill that you can pass on to your daughters.
Food? Once your baby is big enough to eat, make your own food for him or her. Baby food costs a fortune and who knows what they might be putting in there (preservative wise) and organic is just too expensive. So, whatever you eat, fix baby some! Bananas and mashed avocados are great foods to start your baby on. Consider a food mill:I took one with me everywhere I went. At home I could usually mash with a fork but this was a good option for visiting family and eating out.
Consider canning your own baby food to take out with you and to have on hand. Look at Brandy's home-canned banana baby food! An excellent way to keep your frugal baby happy and healthy!
Toys? My oldest had all the toys a baby could want but seldom played with many of them. I discovered after several more children that they would rather drag out my pots and pans, stack canned goods, or play with empty boxes...so that became their toys! I kept a big cardboard box in the pantry with empty oatmeal barrels, egg cartons, plastic jars, empty cool whip containers, etc and their lids (nothing small they could choke on) and I would pull this down several days a week. They loved it!
Diapering? Yes, this is the spill about cloth diapers. For the cost of about a 3 week supply of diapers, you can get everything you need to get you set up for a year of cloth diapering.
There you go- diapers, diaper pale, and pins. Throw in some Dreft and bleach- and you're all set.
Thinking about Education? Home schooling is another great option for keeping your child frugal. You can continue to make frugal lunches and still know what he/she is eating. You can also maintain a frugal clothing budget.