COST OF RAISING A CHILD FROM CRADLE TO COLLEGE (TILL 21)

COST OF RAISING A CHILD FROM CRADLE TO COLLEGE (TILL 21)

1. ITEMS OF COST

·         Housing – After a child is 4 years old, a family will normally need an additional room.

·         Food – Expenses are higher in the toddler years due to specialized diet requirements, but it gradually tapers down to normal.

·         Clothing – Children’s clothes, including school uniforms, are expensive, sometimes even more than those of parents, and have to be bought frequently in their growth years.

·         Transportation – It includes cost of traveling to school, college and on family holidays, which may be lesser when the child is older and uses public transport.

·         Healthcare – They are higher in the initial years due to pre-natal, maternity and vaccination expenses.

·         Education – Costs include tuition fee, books, stationery, coaching, school trips and functions.

·         Entertainment – It includes expenses on toys, story books, internet connection, cable TV, movie-going, CDs, DVDs, cell phone bills, holiday trips, etc.

·         Miscellaneous – It includes extra living expenses on an additional member towards electricity, telephone, toiletries, maids, servants, etc.

2. HOW MUCH % WILL YOU SPEND IN RAISING A CHILD FROM 0–21 YEARS

·         Education            45%     highest % between 17-21 years                    

·         Housing               15%     lowest % between 0-4 years

·         Entertain.            15%     highest % between 13-21 years

·         Clothing                5%     highest % between 0-16 years

·         Transport.            5%     highest % between 5-12 years

·         Food                      5%     highest % between 0-4 years

·         Healthcare           5%     highest % between 0-4 years

·         Misc.                     5%     highest % between 0-4 years

·         0 – 4 years          10%     highest % on education & health

·         5 – 8 years          10%     highest % on education & housing

·         9 – 12 years        15%     highest % on education & housing

·         13-16 years         25%    highest % on education & housing

·         17-21 years         40%    highest % on education & housing

3. POINTS TO NOTE

·         Basic expenses include housing, clothing, food and misc. costs.

·         Education expenses remain the highest throughout the child’s growth, having risen faster in metro cities than in other towns, and shoot up further if a child joins a professional course.

·         Entertainment is a major expense, higher than healthcare and transportation combined, mostly due to high cost of mobile, music and video gadgets that children consider essential, especially after they enter their teens.

·         Medical costs are high in the initial years, but they remain low if there is no major illness.

·         Around 50% total healthcare costs get spend during the first 4 years of a child.

·         Transportation is not a big expense, but grows at a steady pace till the child becomes independent.