From Rs 15,000 SIP to Rs 18,000 expenses: How much does it cost to raise a child in India? CA shares the financial breakdown

For many young couples, the decision to have a child is often driven by emotion, timing, or family expectations. But beneath that life-changing moment lies a financial commitment that quietly stretches across decades. A recent breakdown shared by Chartered Accountant Paaras Gangwal has sparked conversation online, as he laid out what it realistically costs to raise a child in India today, and why planning early can make all the difference in managing that responsibility with confidence.

Paaras Gangwal approached the subject with a simple idea: baby planning is, at its core, financial planning. He broke down the costs into three key stages, starting with the initial expenses around birth. According to his estimate, pregnancy, delivery, and care during the first year can cost between Rs 1 lakh and Rs 2 lakh. In Tier-1 cities, this figure can rise significantly, reaching anywhere between Rs 3 to 4 lakh, depending on healthcare choices and facilities.

Infancy to adulthood

The next phase, which stretches from infancy to adulthood, forms the bulk of the financial commitment. Gangwal estimated that raising a child from age one to eighteen, covering schooling, food, healthcare, and lifestyle needs, can cost around Rs 18,000 per month for a reasonably comfortable upbringing.

From lakh to crore

He then highlighted how future goals add another layer of financial pressure. Expenses like higher education and marriage, which may seem distant, are heavily impacted by inflation. What costs around Rs 50 lakh today could rise to nearly Rs 1.1 crore over an 18-year period.

Solution?

To address this, Gangwal suggested starting early with disciplined investing. He explained that a monthly SIP of Rs 15,000, invested consistently over eighteen years at an assumed return of around twelve per cent, has the potential to build a corpus of approximately Rs 1.1 crore.


Through this structured breakdown, he outlined a simple readiness check. Managing an initial lump sum for birth-related costs, sustaining monthly expenses for upbringing, and committing to long-term investments together form the foundation of financially preparing for parenthood.