Planning a baby? CA gives 'realistic cost check' on how it could exceed Rs 1 crore

Raising a child in India today isn’t just about emotional readiness, it’s increasingly about financial planning as well. With the cost of living steadily going up, many young couples are starting to ask a very real question: how much does it actually cost to raise a child in India?

A recent post by Chartered Accountant Paaras Gangwal has gone viral for putting a rough price tag on parenthood, and the numbers have definitely got people talking.

“Baby planning is financial planning”

Sharing his thoughts online, Paaras Gangwal wrote, “Baby planning is financial planning. A realistic cost check.”

His breakdown looks at the journey in three phases, early expenses, monthly costs, and long-term financial goals. And when you put it all together, it’s clear that raising a child is a long-term commitment that needs serious planning.

The first year alone can cost up to Rs 4 lakh

According to Gangwal, the initial stage, pregnancy, delivery, and the baby’s first year, can cost anywhere between Rs 1 lakh and Rs 2 lakh.

However, if you’re living in a metro city, that figure can easily jump. In Tier-1 cities, where healthcare costs are significantly higher, expenses may go up toRs 3 lakh to Rs 4 lakh.

That’s before the regular monthly spending even begins.

Monthly cost of raising a child: Is Rs 18,000 realistic?

For the next phase, Gangwal estimates around Rs 18,000 per month to raise a child from age one to eighteen. This includes schooling, food, healthcare, clothing, transport, and basic lifestyle needs.

Over 18 years, that monthly spend adds up to a substantial amount, turning child-rearing into a major financial responsibility.

That said, not everyone agrees with this estimate. Many users pointed out that Rs 18,000 might be enough in smaller cities, but could fall short in metro areas where education and lifestyle costs are much higher.

Future expenses could reach Rs 1.1 crore

One of the biggest concerns is the cost of future goals like higher education and marriage. Gangwal noted that Rs 50 lakh required today could grow to nearly Rs 1.1 crore over 18 years due to inflation.

This highlights a key point, putting off savings now could mean facing a much heavier financial burden later.

Can Rs 15,000 SIPs really build Rs 1.1 crore?

To manage these rising costs, Gangwal suggests starting early with disciplined investing. He recommends a monthly SIP of Rs 15,000 over 18 years, assuming an annual return of around 12 per cent.

According to his estimate, this could help build a corpus of about Rs 1.1 crore.

As he explained, “If you can manage: Rs 1–2 lakh lump sum, Rs 18k/month expenses, Rs 15k/month SIP, you’re financially ready for baby planning.”

Internet reacts: Smart planning or too optimistic?

The post quickly sparked debate online.

Some users appreciated the clarity and long-term thinking. One comment read, “Excellent framing, tying family goals to SIP discipline is brilliant. Long-term compounding wins again!”

Others, however, were more cautious. One user pointed out, “I don’t think Rs 18k a month would include all lifestyle and education costs. Could work in Tier-2 or Tier-3 cities, but not in Tier-1.”

At the end of the day, whether Rs 1.1 crore is enough depends on your lifestyle, city, and expectations. But one thing is pretty clear, raising a child today requires planning well in advance.

And if there’s one line that sums it up, it’s this: baby planning is financial planning.

Disclaimer: This article is based on a user-generated post on social media. ET.com has not independently verified the claims made in the post and does not vouch for their accuracy. The views expressed are those of the individual and do not necessarily reflect the views of ET.com. Reader discretion is advised.