- Date : 09/09/2023
- Read: 3 mins
Raising a child in India costs approximately Rs. 30 lakhs. Education, healthcare, housing, and daycare are major expenses. Planning and an emergency corpus are crucial.
Parenthood can be a wonderful experience, as nothing quite compares to the delight of raising a child. However, it can be a challenging and expensive journey. An Economic Times survey tells us that the average cost of raising a child in India in 2011 was Rs. 2.1 lakhs.
But what is the cost today? Let's discuss.
Highlights:
-
The cost of education in India is very high, especially for private schools.
-
An expense tracker can help deal with the unpredictability of expenses.
-
Considering the inflation rate, setting aside a higher education corpus is better.
What are the different expenses involved in raising a child in India?
-
School expenses
From ages 3 to 17, schooling expenses range from around Rs. 30 lakhs. Every 2 to 5 years, the cost of education keeps on rising.
Higher education depends on the stream the child decides to take up and the university they decide on. This could range from Rs. 15-50 lakhs.
-
Miscellaneous expenses
Until 18, a significant portion of expenses is allocated to food, housing, and healthcare. Healthcare expenses may go as high as Rs. 4-5 lakhs. As prices increase, food expenses may reach Rs. 15-20 lakhs.
Also Read: The impact of education inflation nationwide
Tips to manage the cost of raising a child in India
Whether schooling or healthcare-related, expenses aren't just expensive. They are also unpredictable. However, prudent planning can come in handy when meeting unforeseen expenses.
-
Don't be rigid
Maintain flexibility while planning your child's education. Education expenses escalated by 10-12% from 2012 to 2020, compounded by inflation rates.
Moreover, daycare expenses also add up when both parents are working. The breakup for tuition fees can be as follows:
-
Primary School: Rs. 1.25-1.75 lakhs
-
Middle School: Rs. 1.6-1.8 lakhs
-
High School: Rs. 1.8-2.2 lakhs
Also Read: A guide to saving Rs. 2 crores for your child's schooling
-
Build an emergency corpus
Tier-1 and tier-2 cities often see families raising a single child. Despite that, transportation, admission, and tuition fees see regular hikes. However, families raising siblings may get discounts of Rs. 10,000-20,000 from the school if all children attend the same school.
-
Allocate and diversify your savings
Set aside funds for different expenses. You can open different SIPs for different stages of your child's education.
The takeaway
Understanding the cost of raising a child in India is crucial for parents. By being aware of these financial implications, parents can make informed decisions and provide a stable environment for their children.
From healthcare and education to necessities, planning and budgeting are important to manage the average cost of raising a child in India. Use an expense tracker to monitor cash flows and safeguard financial goals. Additionally, prioritise building a corpus for education and healthcare expenses.
Click here for the latest wise up articles.
Parenthood can be a wonderful experience, as nothing quite compares to the delight of raising a child. However, it can be a challenging and expensive journey. An Economic Times survey tells us that the average cost of raising a child in India in 2011 was Rs. 2.1 lakhs.
But what is the cost today? Let's discuss.
Highlights:
-
The cost of education in India is very high, especially for private schools.
-
An expense tracker can help deal with the unpredictability of expenses.
-
Considering the inflation rate, setting aside a higher education corpus is better.
What are the different expenses involved in raising a child in India?
-
School expenses
From ages 3 to 17, schooling expenses range from around Rs. 30 lakhs. Every 2 to 5 years, the cost of education keeps on rising.
Higher education depends on the stream the child decides to take up and the university they decide on. This could range from Rs. 15-50 lakhs.
-
Miscellaneous expenses
Until 18, a significant portion of expenses is allocated to food, housing, and healthcare. Healthcare expenses may go as high as Rs. 4-5 lakhs. As prices increase, food expenses may reach Rs. 15-20 lakhs.
Also Read: The impact of education inflation nationwide
Tips to manage the cost of raising a child in India
Whether schooling or healthcare-related, expenses aren't just expensive. They are also unpredictable. However, prudent planning can come in handy when meeting unforeseen expenses.
-
Don't be rigid
Maintain flexibility while planning your child's education. Education expenses escalated by 10-12% from 2012 to 2020, compounded by inflation rates.
Moreover, daycare expenses also add up when both parents are working. The breakup for tuition fees can be as follows:
-
Primary School: Rs. 1.25-1.75 lakhs
-
Middle School: Rs. 1.6-1.8 lakhs
-
High School: Rs. 1.8-2.2 lakhs
Also Read: A guide to saving Rs. 2 crores for your child's schooling
-
Build an emergency corpus
Tier-1 and tier-2 cities often see families raising a single child. Despite that, transportation, admission, and tuition fees see regular hikes. However, families raising siblings may get discounts of Rs. 10,000-20,000 from the school if all children attend the same school.
-
Allocate and diversify your savings
Set aside funds for different expenses. You can open different SIPs for different stages of your child's education.
The takeaway
Understanding the cost of raising a child in India is crucial for parents. By being aware of these financial implications, parents can make informed decisions and provide a stable environment for their children.
From healthcare and education to necessities, planning and budgeting are important to manage the average cost of raising a child in India. Use an expense tracker to monitor cash flows and safeguard financial goals. Additionally, prioritise building a corpus for education and healthcare expenses.
Click here for the latest wise up articles.
