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Expenses Parents Need to Save for Children                

You can either buy a luxury car or raise a child. That might sound heartless because raising a child is far more challenging, transformational and rewarding than buying a car. However, to reap those emotional returns, managing expenses and having a financial plan are important from the time your child is conceived until she is on her own. It’s always best to have an overall amount in mind and then break it down into annual and monthly savings goals.               

The nature and amount you spend on your child dramatically change as she grows. For instance, healthcare costs are highest until the child is 4 years old, and education costs skyrocket between the ages of 12 and 21. From conception to college, you spend roughly ₹60-80 lakhs on your child’s education, healthcare, food, clothing, entertainment, transportation, housing, and other miscellaneous expenses. Also, this figure may vary depending on factors like the city of residence, the standard of living, inflation rate, savings potential, etc. 

managing expenses

Let’s dive deep into the list of expenses:  


In India, managing expenses from senior secondary onwards can be pretty high. In addition to tuition fees, parents must also save for school uniforms, books, and other necessary materials. Also, private and international schools are more costly than government schools.


A family of 2 can live in a single-bedroom flat, but when a junior arrives, they will have to rent a bigger house. Usually, when the child turns 4, a family would need to rent at least a 2-bedroom house, which would increase the list of managing expenses.

managing expenses


Children are particularly vulnerable to illnesses and require regular check-ups and vaccinations. Unexpected medical expenses, such as hospitalisation, can also occur. Therefore, parents must consider these costs when planning for their child’s future.

managing expenses


Children’s clothes are expensive, even costlier than adults’ sometimes. Also, you need to buy them frequently as children outgrow them. 

Hobbies and interests

Supporting your child’s hobbies and interests can be expensive too. Such costs can include music lessons, dance lessons, sports lessons, etc.    


Entertaining your child takes up more money than feeding or clothing him. This list of managing expenses can include toys, story books, comics, internet connection, movies, holidays with friends, etc.


Computers, smartphones, and other tech devices are becoming increasingly necessary for education and daily life. The cost of these devices can be high. Thus, keeping account of such expenses for children is very important.


Adding a family member means extra living expenses. More electricity consumption, higher telephone bills, more soap, toothpaste, hair oil, deodorant, etc. This also includes higher wages for household help.  

Final Words

This list isn’t entirely complete and may vary based on individual circumstances, but it provides a general idea of the types of spending parents need to think about for their child’s future. Therefore, managing expenses and adjusting the budget is vital to ensure adequate savings.

About Multipl 

Multipl is the world’s first “Save Now, Pay Later” app. With Multipl, you can create goal-based investments, which means you can save and invest at the same time for a specific purpose. 

The Multipl investment engine allocates the right assets and investment portfolio based on your duration, purpose, and risk profile so you can achieve your goal with maximum safety and liquidity. You can create both short-term and long-term savings goals like Gadget Goal, Vacation Goal, Child’s Education Goal, Retirement Savings Goal, and many more. In addition, brands co-invest with you to save more towards your goals. To learn more, download the app from Play Store/App Store.  

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