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The Cost of Raising a Child in India: A Comprehensive Analysis

Analysis of cost of raising a child in india

Raising a child is an enriching journey, but it also carries a substantial financial responsibility. The cost of nurturing a child in India varies widely, influenced by factors like geographical location, lifestyle, and individual choices. This article aims to provide a comprehensive examination of the expenses associated with raising a child in India.

Healthcare Expenses: 

Among the foremost expenditures when raising a child, healthcare takes precedence. India offers a spectrum of healthcare options, ranging from government hospitals to private clinics. Costs accrue from vaccinations, routine check-ups, and unforeseen medical emergencies. While government healthcare facilities offer cost-effective solutions, many parents opt for private healthcare services, valuing superior service and prompt accessibility. Child health insurance can alleviate some of these financial burdens.

Education Costs: 

Education emerges as a prominent financial commitment in a child’s life. Beyond primary and secondary education, parents often consider enrolling their child in private or international schools, which come with a considerably higher price tag. In addition to tuition fees, there are expenses associated with textbooks, uniforms, and extracurricular activities. As the child progresses to higher education, costs escalate further, encompassing college tuition fees, examination charges, and coaching classes.

Housing and Utilities: 

The presence of a child often necessitates a more spacious living environment. Housing expenses exhibit significant variation based on location, with metropolitan cities demanding exorbitant rents or property prices. Larger dwellings translate to augmented utility bills, including electricity, water, and gas charges.

Nutrition and Food: 

Ensuring proper nutrition for a child’s growth is paramount. The cost of groceries, baby food, and dietary supplements can become substantial. As children grow, their nutritional needs evolve, potentially driving up food expenses. Dining out or ordering takeout occasionally can also contribute to the overall food budget, especially for busy parents.

Childcare and Babysitting: 

Many parents require childcare services, particularly when both parents work. This category encompasses the cost of hiring a nanny, enrolling the child in daycare facilities, or paying for after-school programs. The cost varies based on the quality and location of these services.

Clothing and Personal Care: 

Children swiftly outgrow their clothes, necessitating frequent purchases. This includes everyday attire as well as special occasion outfits. Personal care items such as diapers, toiletries, and grooming products also factor into the overall expenses.


Conveying a child to school, extracurricular activities, and medical appointments contributes to the family’s transportation costs. Some parents opt to invest in a family car to accommodate their child’s needs, incurring additional expenses like fuel, maintenance, and insurance.

Extracurricular Activities: 

Many parents encourage their children to participate in extracurricular pursuits, including sports, music, dance, and arts. These activities often entail fees for lessons, equipment, and travel expenses for competitions or performances.

Savings and Investments: 

Planning for a child’s future is a vital financial aspect of parenting. Parents frequently save for their child’s higher education, marriage, and other long-term aspirations. Investment avenues such as fixed deposits, mutual funds, and insurance policies are commonly employed for this purpose.

Miscellaneous Expenses: 

Children possess the knack for surprising parents with unexpected financial demands. These can encompass expenses like birthday parties, gifts for friends, school project materials, and unanticipated repairs or replacements of damaged items.

In major cities like Mumbai, Bangalore, and Delhi, the cost of raising a child is considerably high. For instance, a couple in Mumbai with an 8-year-old spends approximately Rs 1.72 lakh per year on school fees, Rs 2,000 monthly for extracurricular activities, Rs 10,000-12,000 on medical expenses, and Rs 20,000-24,000 on clothing. On top of these expenditures, they must also save for their child’s future. In Bangalore, another couple with two sons, aged 5-and-a-half and 8 months, pays around Rs 80,000 annually for school fees, while Rs 1.8 lakh is allocated for car expenses, including fuel. Additionally, summer vacation camps cost Rs 8,000 to Rs 10,000, with newborn medical expenses totaling Rs 40,000 annually. Delhi residents face an annual school fee of Rs 1.56 lakh, while in Indore, it stands at Rs 1.5 lakh. Even before these expenses, a C-section childbirth costs approximately Rs 1 lakh, and over a decade, it accumulates to around Rs 3.7 lakh. The initial 18 months also incur expenses of Rs 60,000 to Rs 80,000 for vaccines.

To manage the cost of raising a child effectively, financial planning and budgeting are crucial. Families should consider creating a financial plan that outlines their short-term and long-term financial goals related to their child. It’s essential to factor in inflation and the rising costs of education and healthcare when making these plans.

Gen Z’s attitude towards becoming a parent

Taking all these factors into consideration, Gen Z, the generation born roughly between the mid-1990s and early 2010s, is exhibiting a notable trend of delaying or even choosing not to have children. Several factors contribute to this decision. Many Gen Z individuals are burdened with student loans and face high living costs, making it financially challenging to start a family. Additionally, witnessing the financial struggles of previous generations, such as the Great Recession of 2008, has made them more cautious about their own financial stability.

Secondly, Gen Z is acutely aware of global issues like climate change and overpopulation. Environmental consciousness is a significant driver in their decision to limit family size or forego parenthood entirely. They fear the ecological footprint of having children in a world grappling with sustainability challenges.

Furthermore, changing societal norms and values have led to different priorities. Gen Z prioritizes personal fulfillment, career aspirations, and experiences over traditional family structures. They value independence and are delaying life milestones like marriage and parenting until they feel more settled in their own lives.

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