This Is How Much It Will Cost You To Raise Your Child From Birth Till 21 In India

Before I had my first child, my husband and I had very few belongings. We had moved countries a few times and were quite satisfied with our whole world packed into a few boxes. Then our son arrived and with him came a baby bed, a crib, a high chair, a baby tub, a walker, a playpen, a travel crib, a stroller, a car seat, and the list goes on and on and on.

Having a baby is not for the cheap hearted. It is a known fact that once people have kids, they ditch the nomadic lifestyle, put down roots somewhere and then start looking for the best preschool, school, college etc. And once you put down roots, you start piling the goodies. Having a baby and raising them till they are old enough to leave the nest is not cheap. So how much does it really cost to have a baby in India?

A normal delivery in India, with pain relief, at a reputed hospital will cost you approx : Rs 50,000 – Rs 2,00,000.

A caesarean delivery in India at a reputed hospital will cost you approx Rs 2,00,000 – Rs 4,00,000

So once you bring the baby home where do you end up spending money? Here is a breakup:

According to a study done by ET Wealth in 2011, it will cost approximately Rs 54.75 lakh to raise a child from birth until they are 21 years old in India. Compare that to the US Department of Agriculture’s estimate of how much a middle class family will spend to raise a child in America and that number is $243,273! 

You might also like: How to financially plan for your child’s future?

Let’s break down the costs

Housing: Before you have a baby a couple is satisifed with living in a one bedroom apartment. But with baby comes the need to move into bigger, more spacious place. And so housing accounts for one of the bigger pieces of the pie. A family will end up spending 19% to house their child.

Education: Parents know all about finding the best schools now don’t we? With more and more parents choosing IB and IGCSE schools over Indian curriculums it will not come as a surprise to see this number go up. The study took into account children studying in public schools and estimated books, tuition fee, and even school trips to arrive at this estimate. They say a family will spend 46% of the pie on education alone.

Entertainment: What can our kids do these days without the internet? Taking into account internet, cable, toys, books, movie outings, and even vacations a family will end up spending close to 12% of the pie on entertainment alone.

The other 23% is spent on clothing (6%), healthcare (4%), food (5%), transportation (5%) and miscellaneous expenses (3%).

You may also like: Words related to money you should teach your child 

This analysis shows how inflation and cost of living have sky-rocketed compared to a few years earlier, if not an entire generation. Ofcourse, when we were kids we were satisfied with Doordarshan as the only entertainment and a few books and toys. Times have changed, the facilities we provide have increased and hence, the demands from children’s ends have shot up as well. This analysis aims to give a clear picture to parents, expecting couples and those who are planning to have a baby about how much you would have to spend to raise your child in our country, in the given scenario. Ofcourse, the priceless moments the little bundle of joy brings with it and the sheer joy of parenting can never be accounted for. Stay updated, be prepapred for the little surprises and enjoy your parenting journey.

Don’t forget to follow us on Facebook, Twitter, Pinterest, Soundcloud & Instagram or subscribe to our YoutubeChannel for more information.