So, how much does it cost to raise a child from 0 to 3 years in India? Let us have a look at some of the biggest of expenses.
1. HealthcareOnce your baby has arrived, he/she will continue to need medical care in the first few years. Vaccinations, wellness checks, and childhood maladies are some of the common healthcare expenses. While raising children in the first three years, the healthcare costs can be anywhere between Rs. 1 lakh to Rs. 2 lakh depending on the city you live and healthcare provider you select.
Having a family floater plan can be a great help. Most plans allow you to add your new-born baby once the baby is 90 days old.
2. Baby SuppliesThe next important consideration for calculating the cost of raising a child is baby supplies. From one-time purchases such as a crib and car seat to regular expenses such as diapers, wipes, toys, clothing, baby formulas, and several other products, baby supplies can get very expensive.
In the first three years, this can cost around Rs. 1 lakh to Rs. 1.5 lakh.
3. PreschoolMost preschools allow children who are 2.5 to 3 years old. If you think your child will be ready for preschool by this age, you also need to consider the preschool costs to know the average cost to raise a child.
The costs are significantly higher in metropolitan cities as compared to Tier 2 and Tier 3 cities. The annual preschool cost in metropolitan cities can be Rs. 1 lakh to Rs. 2 lakhs. The same in Tier 2 and Tier 3 cities can be Rs. 30,000 to Rs. 80,000.
Total Cost of Raising a ChildApart from the major expenses listed above, there can also be a host of other smaller expenses. Overall, in the first three years, the cost of raising a child in India can be anywhere between Rs. 5 lakh to Rs. 6.5 lakh.
As the cost of raising a child in the first few years can be very high, couples should start planning their finances as soon as they get married. It is only with smart money management for children that they can make sure that their child receives the best of care and nurturing.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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