help create a corpus for crucial stages in the child’s life
Raising a child is like planting and taking care of a tree. From the time you plant the seed, you have to nurture it, take care of it every day, giving it adequate water and fertilizers, till it is a strong, mature tree producing beautiful flowers and fruits. Same is the case with a child- even when the child is in the mother’s womb you nurture and take care so that a healthy child is born. After the child is born, you continue nurturing and caring for the child. You want the child to be healthy and give them the best in life so that they grow up to be good, well-rounded and responsible individuals.
However, as your child starts growing, you will realize that bringing up a child is no child’s play, financially or otherwise. Children are for sure a blessing, but they don't come at a discount. Your little bundle of joy will require a lot from you in terms of commitment and cash till they are free birds and on their own. It is therefore a foregone conclusion that families that plan ahead not only have better control over their finances, but are also in a better position to ensure their financial goals don't get derailed and go haywire along the way. With Inflation or rising costs of living, it is imperative that you plan well in advance about how much it is going to cost you to bring up your child.
Inflation in India has been around 6% during the last 3 years and has been “seriously hurting” family household budgets. Food costs are rising every day, and so is the cost of clothing, education, medical expenses and luxuries such as vacations, which have nearly doubled in the last 10 years. Food and medical expenses are the most important aspects as these affect your health directly. Health is after all wealth, and if your child has good health, you have won half the battle in life. Cost of keeping a caretaker, summer hobby classes, vacations, entertainment and so on are the other expenses that will cost you to dig deeper into your pockets in the coming days. You want to give your child all that and even more than you had for yourself.
Education costs are rising much faster than all other costs, whether it is school, college or university education. School fee have doubled in the last five years, and college fee too have increased substantially. At the current rate of inflation, your child’s last year of college may cost around 20% more than the first year. You also need to take into account the cost of private tuitions.
The cost of raising a child from birth to age 17 has surged 25 percent over the last 10 years. It is therefore very important to secure the life of your child from an early age. Various child insurance policies exist in India that will help you at key milestones in your child’s life- college and university education, marriage and so on. Child education policy helps you in building a corpus required for the education of your child. You must make sure that you make the right choice for the insurance of your child.
Last but not the least, raising kids is more expensive today because they're pampered and over indulged. Tons of toys and clothing, gizmos such as cell phones and ipads, family cruises and plane trips, extravagant birthday parties- it's an endless list of things that didn't exist even 10 years ago