Newborns are little for sure but along with their shrieking crying, you may also hear the sound of your FD/RD breaking atleast in the Tier-1 and Tier-2 cities across India.
Kids can be expensive but being childfree voluntarily is becoming more and more common among individuals and couples nowadays. Reason? Money.
A recent comprehensive analysis featured in HT Media’s financial daily, Mint, has captivated online audiences with its insightful breakdown of the costs associated with raising a child.
The report gathered perspectives from individuals across diverse regions of India, shedding light on approximate expenditures encompassing school fees, extracurricular activities, summer camps, clothing, medical expenses, and investments for higher education. By aggregating these components, the report revealed the annual financial commitment parents must anticipate for their child’s well-being. Depending on factors such as family size and other considerations, the annual total spanned from Rs. 2.5 to 4.5 lakhs.
Notably, the report also delineated the evolving financial outlay at distinct life stages, covering everything from pediatrician consultations in various locales to the estimated expenses spanning a child’s academic journey, be it pre-primary or higher secondary education.
Furthermore, it projected the financial outlay for post-schooling education, including both domestic and international options. The projections factored in a 10% inflation rate over 10 years. While domestic higher education was estimated between Rs. 15-50 lakhs, the international option stood at no less than Rs. 3 crores.
Keeping aside a nominal expenditure of ₹20 lakhs for medical and food expenditure along with another ₹15 lakhs for fuel + clothes, the total money spent over a span of 20 years is well above ₹1 crore.