Although nothing beats the joy of having, nurturing, and giving a child, it is not cheap. Parenting is a considerable financial, emotional, and physical effort.
Raising a kid in India is tough and costly. If you’re wondering how much it costs to raise a child in India?
List of major expenses for child education plans
1. School expenses
Children’s schooling and extracurricular activities consume a significant portion of a parent’s annual income. Over 65% of parents devote at least half of their annual money to schooling.
Every parent wants the greatest education for their child, even if it means periodically struggling to make ends meet due to rising tuition fees.
A private school charges between 50,000 and 2 lakh rupees every year. The cost of schooling would range from 11 to 43 lakh rupees over the course of 12 years, assuming a 10% annual inflation rate.
This charge is in addition to any tuition or extracurricular activities that your kid will participate in.
2. College expenses
College expenditures account up a significant portion of the total cost of raising a child in India. Indian parents are particularly concerned about growing college fees, which represent a significant investment.
Engineering degrees now cost between ₹12 and ₹15 lacs, but are expected to rise to ₹42 to ₹50 lacs in the next 15 years.
In the same line, it is realistic to estimate that in 15 years, a medical degree will cost more than one crore if it currently costs ₹30 to ₹40 lacs.
Although parents may opt to use student loans to pay for more expensive education, the interest rate remains high even after tax breaks.
3. Miscellaneous expenses
When calculating how much money it costs to raise a child in India, it is vital to account for miscellaneous expenses.
Food, housing, and child care are the primary expenses for children under the age of 18, but they are not the only ones to consider. Other necessities such as clothes, education, and healthcare might be expensive to obtain.
When assessing the expenses of having and raising children, all of these factors should be considered.
- In 2011, the Economic Times reported that raising a child in India costs an average of ₹2.1 lacs. Healthcare prices are also rising quickly. Healthcare costs have gradually climbed since then, more than doubling from their prior levels. Health care expenditures for raising a child typically range from ₹4 to ₹5 lacs.
- On average, people spend between ₹5000 and ₹6000 on food and related expenses, including eating out. This might lead to an increase of ₹70,000 in annual expenditures. Food costs are expected to increase over the next 20 years, potentially costing between ₹15 and ₹20 lacs.
- A typical middle-class household going to the cinema once a week and occasionally to a play or a weekend vacation should anticipate to spend around ₹ 4000 per person, however this may vary based on their demands. A domestic holiday costs around ₹30,000 per person, resulting in an average yearly entertainment budget of ₹70,000 to ₹80,000.
- All of these expenditures are based on current pricing and do not account for inflation, so you will need to change your budget each year while you raise your child.
- When it comes to how much money is required to raise a child in India? Today, raising a child in India might cost between ₹65 and ₹80 lacs.