you buy high end merc or bring up child that might heartless because raising a child is way more challenging transformational and rewarding than a but to reap those emotional returns you need a financial plan that provides for expenses from the time child conceived until she is on own it is always best have an overall amount in mind and then break it down to annual and savings targets that is what we have attempted to provide hereas your child grows the nature and amount you spend on her changes dramatically for instance healthcare costs are highest till the child 4 years old and education costs shoot 17 and 21 based healthcare food clothing housing some miscellaneous expenditure you spend rs 674 lakh at current prices on your from conception to if the inflation rate is 3 per cent this figure up to rs 105 crore if the inflation shoots up to 6 per cent you end up rs 17 crore here is an approximate age wise of expenditure0 4 years rs lakh 5 8 rs lakh 12 years rs lakh 13 16 years lakh 17 21 years 354 lakhcumulative breakupeducation 59it will be higher in metros in tier 2 and 3 towns housing 10if housing as the surprises you keep in mind that couple without children live in a smaller house entertainment 9entertainment costs up once the child enters teens birthday gifts gadgets hobbies holidays with friends etc 6 is the head of spending followed food transportation and at roughly 5 each assumptions the precise figure 674 lakh per child is and wo nt apply exactly to all families based on city of residence standard of living and savings potential a family specific target can be the following assumptions in housing a family of two can live in a single flat but they will need to rent a bigger house when junior arrives we have assumed after a child is four a family would have rent at least a 2 bedroom house which add 2000 to the monthly in the initial years expense is relatively high because of the specialised diet requirements of an infant but gradually tapers food does not constitute a major expense the total costsclothing children s clothes are expensive sometimes costlier than adults you need to buy them often as children outgrow them our estimates include all including uniforms and shoestransportation we have of transportation school college as well as cost of family holidays some of these costs down when the child starts using public transport some families may have to buy second vehiclehealthcare