Archive · 4 Oct 2026
Planning for a Child’s Future Now Requires Long-Term Investing
The article says raising a child can cost a lot, especially in cities.
It divides the expenses into early childhood, school years and higher education.
College and other higher studies may be the most expensive part.
Education costs can rise faster than many other prices.
The article suggests that parents start saving and investing early, so their money has more time to grow.
It describes monthly investments in equity funds and government savings schemes as possible tools.
It also recommends life and health insurance to help protect a family’s plans.
The article says these figures are for planning, not for making parents panic.
The article estimates raising a child to age 25 costs ₹75 lakh–₹2 crore for middle-class urban and semi-urban households, and ₹2–4 crore for upper-middle-class families.
Estimated costs are ₹10–20 lakh for ages 0–5, ₹40–80 lakh for ages 6–17, and ₹25 lakh–₹3 crore for higher education from ages 18–25.
It says education costs rise by 10–12% annually, faster than the 5–6% average inflation rate cited in the article.
An early equity-fund SIP of ₹20,000–30,000 monthly, increased 10% each year, is projected to grow over 18 years to ₹2.88–4.32 crore at 12% CAGR or ₹3.89–5.83 crore at 15%.
The article recommends combining investments with tax-oriented government schemes, term life insurance and family health insurance.
- Who
- Parents and households planning for a child’s expenses.
- What
- An article estimates the cost of raising a child to age 25 and outlines saving, investing and insurance approaches.
- When
- Published October 4, 2026.
- Where
- India, with estimates focused on semi-urban and urban households.
- Why
- To help families plan for rising child-rearing and education costs while protecting their financial independence.
- Estimated cost, middle-class households
- ₹75 lakh–₹2 crore to age 25 in semi-urban or urban India.
- Estimated cost, upper-middle-class households
- ₹2–4 crore, depending on lifestyle and city.
- Foundation years
- Ages 0–5; estimated total cost ₹10–20 lakh.
- Schooling years
- Ages 6–17; estimated total cost ₹40–80 lakh.
- Higher education years
- Ages 18–25; estimated total cost ₹25 lakh–₹3 crore.
- Education inflation
- The article gives an annual estimate of 10–12%, compared with 5–6% average inflation.
- Suggested insurance cover
- Term life insurance worth 15–20 times the primary breadwinner’s annual income.