Archive · 2 Jul 2025
Experts Outline Child-Rearing Costs and Investment Strategies
Raising a child in India is expensive, potentially costing over 50 lakhs!
This money goes towards things like food, clothes, school, and fun activities.
Financial experts suggest parents start saving early, like when their child is born, to cover these costs.
One way is to invest a little money each month, which can grow over time.
They also suggest using safe savings plans like PPF and Sukanya Samriddhi Yojana to help plan for the future.
Raising a child in India may cost between Rs 55 lakh and Rs 85 lakh, according to financial advisor Siddhant Garg.
Basic expenses like food, clothing, and healthcare may total Rs 15–20 lakh.
Education costs can range from Rs 10–15 lakh for private school to Rs 15–25 lakh including college and coaching.
Investing early, such as through SIPs, can help parents meet these expenses.
PPF and Sukanya Samriddhi Yojana are suggested as tax-free, safe investment options.
- Who
- Financial advisor Siddhant Garg.
- What
- Information on the costs of raising a child and financial planning.
- When
- Information provided is current with advice on investments.
- Where
- India.
- Why
- To provide parents with information on managing child-related expenses.
Investment Strategies
Investment Recommendations
Investment Approach
Investment Strategies
Experts recommend blending mutual fund investments with safer instruments like PPF or Sukanya Samriddhi Yojana for a balanced portfolio.
Investment Recommendations
Emphasis is placed on opening a Systematic Investment Plan (SIP) in a child's name to instill disciplined savings habits.
- Estimated cost of raising a child
- Rs 55 lakh - Rs 85 lakh
- Recommended investment start time
- As early as possible
- PPF interest rate (Q2 FY2025-26)
- 7.1%
- Sukanya Samriddhi Yojana interest rate
- 8.2%
- Examples of SIPs
- SBI Magnum Children’s Benefit Savings Regular Plan, LIC MF Children’s Fund, UTI Children’s Hybrid Fund