Becoming a parent is one of the most fulfilling experiences in life. But at the same time, it also has financial repercussions. Understanding the cost of raising a child in India is crucial for parents, guardians, and even potential parents.
This blog will provide a breakdown of several factors that make up the total cost today which we will illustrate using current research information and data.
Cost of Raising a Child
The current research shows that the urban cost of raising a child in India can possibly be between ₹50,000 to ₹1,00,000 per annum based on their lifestyle and accommodation.
In fact, within cities that are of significant proportions such as Mumbai or Delhi, such expenses can vastly go beyond ₹1,20,000 for the whole of the year. These expenses typically encompass:
Food and Nutrition: The nutritional demands for children are often sizable. It may cost a parent between ₹2,500 and ₹3,500 monthly, which translates to between ₹30,000 and ₹42,000 annually. Proper meals are vital for a child’s growth, making food a critical component of the cost of raising a child in India.
Clothing: Since children develop very fast, they outgrow their clothes within a very short time. From the study, parents are willing to spend about ₹2000/- ₹3000/- per month on children’s dressing implying a monthly expenditure of ₹24000/- ₹36000/- per year. Thus, clothing contributes significantly to the cost of raising a child in India.
Healthcare: Consulting fees, health check-ups, vaccinations and other emergencies are estimated to cost between ₹ 15,000/- to ₹ 25,000/- per annum. Coverage of necessary healthcare is an important necessity and to achieve that parents usually enroll their children to have a good health insurance plan.
Food, clothing and healthcare are only one aspect of the financial landscape. As children grow, education becomes an important factor, which requires careful planning and preparedness.
Education Costs
nterestingly, education emerges as one of the most dominant parts of the cost that entailed in raising up a child in India. The system of education in India has a wide range of options; from government schools to international management quota schools, every option comes with different price tags.
Primary and Secondary Education: The cost of raising a child in India regarding education can vary widely. For example, annual charges in government schools could range between ₹5,000- 10, 000 while in private school which are well established, could cost as much as ₹1,00,000 or even more. Overall, parents are ready to spend approximately ₹ 30000 per annum to the child’s education which is essential to a child’s total development.
Higher Education: The cost of raising a child in India becomes more significant as children grow older. According to a recent surveys, the fee structure of universities in India varies with differing amounts to be paid by the student: for four-year degree courses, the fee can range anywhere to ₹5,00,000 to ₹20,00,000. About this aspect, this is an area where parents have to adjust because there is stiff competition coupled with the growing demand of quality education.
Extracurricular Activities and Hobbies
Encouraging children to explore their interests through extracurricular activities is essential, but these can add significantly to the cost of raising a child in India.
Sports and Arts: Affiliation with such activities as sports, music, dance or art classes cost anywhere from ₹1,500/- to ₹ 5000/- per month and therefore cost anywhere from ₹18,000/- to ₹60,000/-per annum. Though these activities may appear as extra and unnecessary costs, they are important additions into child development.
Parenting Support
Navigating the challenges of parenthood can be daunting, and many parents seek support through various avenues.
Nanny Services and Daycare: For working parents, the daycare centres are primarily expensive and charge between ₹5,000 to ₹20,000 every month depending on the centre. These services can help parents to have an added convenience while they have to work without worrying much.
Counseling and Parenting Classes: Parent use counseling and parenting classes to enhance child raising demand between ₹5,000to ₹15,000 for one year. These resources provide valuable insights and support for managing the cost of raising a child in India
Financial Planning for Future Expenses
Considering the cost of raising a child in India, it is crucial to plan for future expenses, including tuition and healthcare costs.
Child Education Plans: Child education plans or mutual funds acting as an investment for a child’s future education can be highly profitable if started years ago. Parents should explore various financial products tailored for the cost of raising a child in India.
Health Insurance: Securing health insurance for children is also crucial. Affordable treatments can cost anything between ₹5,000 to ₹10,000 per annum which provides adequate defence against any unwanted medical bills.
Long-term Financial Considerations
The cost of raising a child in India extends beyond basic expenses, therefore, long-term financial planning is critical.
Savings and Investments: Parents should consider various saving options, including fixed deposits, Public Provident Fund (PPF), and mutual funds to secure their child’s future. Starting early can significantly impact the growth of these investments, making financial literacy essential for parents.
Conclusion
Everything from eating to learning to seeking medical assistance to personal development activities entails planning, if the costs are to be managed. In this way, by learning these financial obligations, parents can select the right course of action for their child’s benefit and for the child to succeed in the future.
The cost to raise a child in India is surely rising. But the path to achieving your child’s education goals doesn’t have to be that challenging. With Edufund’s College Cost Calculator, you can easily estimate future education expenses based on your child’s age and your expense goal. Start planning now, so you won’t have to worry for their future.
