Can't believe how much it costs to have a baby

We're expecting our first in December and I've been pricing stuff. The crib alone is like $300, then you need a mattress, sheets, blankets. Car seat is another $200 minimum. Stroller, clothes, diapers, formula if we go that route. The hospital bill is gonna be insane even with insurance. How did you guys manage the costs? Are there things we definitely don't need to buy?