Raising children has never been cheap, but in urban India today, the cost is becoming a financial mountain few feel fully prepared for.
Raising children has never been easy on the wallet, but in urban India today, it’s becoming a financial mountain. People often assume child-free couples are loaded with disposable income, but the truth is, many of them choose not to have kids because they simply can’t afford to. Of course, not always, but often enough.
A recent LinkedIn post by Mumbai-based professional Ankur Jhaveri has reignited the conversation about just how expensive parenthood can be. His calculation, based on a chat with his cousin – a teacher at an international school – offered a glimpse into the staggering numbers involved.
“I never realised the real cost of raising kids in India, until I met my cousin last week, who is a teacher at an international school,” Jhaveri wrote.
According to his breakdown, just the tuition fee at a reputed international school could set parents back by anywhere between Rs 7 to Rs 9 lakh a year. And that’s before you even get to the “extras” – uniforms, books, and tuition classes, which could easily push the annual education cost to around Rs 12 lakh.
But education is only part of the story. Jhaveri said, “Now, add to it some additional coaching/extra-curricular activities, clothes, birthday parties, leisure expenses, etc., at Rs 8000-10,000/month (Rs 1 lakh a year).” Altogether, he estimated the yearly spend at roughly Rs 13 lakh per child.
What does that translate to in terms of income? “Assuming you would spend about 30% of your income on your kids – this means your net salary should be about Rs 43-44 lakhs,” he calculated. “The fun part is still left – Income Tax! Assuming you pay 20% of your salary as tax (blended), this means your gross salary, to afford this lifestyle for your kids, should be about Rs 55 lakhs.”
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It doesn’t end there. “This is if you have ONE kid,” Jhaveri pointed out. “Have another one, and these numbers increase substantially.”
Of course, Jhaveri made it clear that his math isn’t flawless: “Those of you who actually have kids, please tell me what else I’m missing (I’m sure there’s something).”
Predictably, the post set off a lively debate. Some parents nodded in agreement, saying his numbers weren’t far off from reality. Others argued that such expenses only applied to those aiming for premium education in metro cities. Anticipating this, Jhaveri noted, “Some folks are commenting, saying ICSE schools charge less. My point here is two-fold: 1) Most parents (at least here on LinkedIn) would want the best education for their kids… 2) The best ICSE schools (the legacy ones) are extremely tough to get into.”
Responding to the post, a user commented, “I would tag these schools as “branded” schools. My school fees was less than Rs 15k a year, i believe it has not touched the lakh figure yet So choosing good school vs branded one is more important.”
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Another user shared a different perspective, “This is present cost. What about future cost of any professional degree or course especially if planning abroad. It will be same amount needed 10 yrs down the line to be saved every yr from now to cover up including future cost of education. Which effective means if we are not having double income group in any metro cities then it’s a definite case of zero savings during retirement.”
A third person wrote, “I am shortlisting schools……and you get decent one’s within lakh to 1.5/yr all inclusive. Now i am not saying this is less, but then your calculation is factoring fees of dhurubhai ambani school …..which shouldn’t be the case.”
