Last Updated on February 7, 2022 at 9:09 am
In this article, author and content writer Smriti Tuteja discusses some financial aspects that couples should keep in mind while planning a family.
About the author: Smriti is an author, artist, freelance content writer and avid reader. She quit her six-year-long IT career to embrace her love for writing. Her article – How much money can I make as a content writer – went viral. She writes content across genres and takes pride in her ability to research and carve magic with words. Over her six years of content writing experience, she has developed a knack for technical and digital marketing content.
She also passionately writes about parenting and is currently working on her book. When not writing or reading, she can be seen running behind her two kids or learning Deutsch. Reader’s may recall Smritis is the lead author of this popular book published via freefincal: How to profit from content writing.
Other articles by Smriti:
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
- Starting a side hustle: what my journey taught me
- The ultimate guide to booking cheap flight tickets in India
- How to choose the right school for my child?
- How a minimalist lifestyle can help save you money
- Things you must spend money on, even if you are a minimalist!
- Getting your financial independence back after a maternity break
- How to teach kids about saving money
- Top habits that will help you achieve financial freedom
When planning kids, most of us are worried about the expenses involved. There has been an increase in the number of families that recognize themselves as DINK (double income no kids), SINK (Single income no kids), DISK (double income single kid), etc. While there is a common belief that kids are a gift of God, the expenses associated with having kids are real. Many of us limit the number of kids we have only because we wish to ensure we give them a comfortable upbringing. Some of us avoid the prospect of having kids altogether because we wouldn’t like more financial responsibilities.
None of these approaches is wrong and whichever lifestyle works for you is the best. However, it doesn’t hurt to know the expenses that you’d incur if you plan to have children. This article is about the financial aspects associated with children. If you are contemplating having children and are trying to figure out the costs involved, here are some expenses that you should be prepared for:
The cost of delivery: While this is an obvious expense, delivery costs can be quite high depending on the hospital you choose and the mode of delivery. However, the good thing is that this is a one-time expense, and many health insurance policies cover it. Hospitals usually charge more for c-section births as compared to vaginal birth. If you wish, you can keep this cost low by opting for a government hospital.
NICU hospitalization: If your child is born prematurely, has faced fetal distress during delivery or there have been some other birth complications, they may need to be hospitalized in the NICU. This hospitalization is covered to some extent in insurance plans.
Cost of nursing/feeding the newborn: Initial difficulties in breastfeeding may require pumping milk and feeding in some cases and this involves the cost of pump and storage materials. If, because of any reason, the parents choose not to breastfeed or need to top up with formula milk, there is an added cost involved. This includes the cost of formula, bottles, cleaning supplies, etc. These costs will vary according to brand, quantity, and personal preferences, but are significant.
Vaccination: The WHO has prescribed a list of vaccinations that helps to save the child from potential health hazards. The immunization schedule is handed over to the parents by most hospitals. Apart from the mandatory vaccines, there are also some optional ones such as those for flu or pneumonia.
Doctor visits and medicines: Apart from vaccinations, you will also need to visit the doctor for regular assessments till your child turns 1-year-old. The doctor may prescribe supplements or medication based on your child’s needs.
Diapers: Your child will need diapers and those will be a regular expense. If you choose to opt for cloth diapering systems instead of disposable diapers, you will have to spend less frequently, but there will be additional costs of washing. These include water and electricity bills, and the cost of detergent.
Cost of clothes, baby gear, and toys: Apart from clothes, you will spend on your child’s travel needs that include strollers, baby carriers, or carrycots. Additionally, the child will need to be engaged with toys or other baby items. There are also other accessories such as diaper pails, baby monitors, cribs, etc. These costs vary based on personal preferences and the expenditure will be based on how much and from where you buy.
Income loss if a working parent chooses to stay at home: It is a beautiful decision to stay at home to tend to your child. However, many of us forget to account for the financial implication of this decision. If a working parent chooses to take a break, it will affect the family income. It may also affect the family’s health insurance coverage. If you choose this option, you will have to budget accordingly and adjust your lifestyle based on the revised family income.
Cost of hired childcare: If you choose nanny services or enroll your child in daycare, there are monthly fees/salaries that you will have to pay.
Education costs: Daycare facilities or nannies are just the beginning, child education expenses that follow require adequate planning and saving. These costs include school and tuition fees, cost of extracurricular activities, uniform and study material costs, college expenses, hostel fees, cost of transportation to school/college, etc.
These costs vary based on your location, preferences, choice of lifestyle, etc. Research a bit and get a rough idea of how much you will have to shell out. This research will help you stay prepared for the big and small expenses and save accordingly. Parenting is a very rewarding joyful experience. Eliminating or managing the monetary stress in the equation will help you focus more on the children. It may seem cheap to think about the costs of feeding and dressing your children, but these little expenses add up. In the absence of proper planning, you will spend a lot and hurt the future savings that you can use for your child’s education or other needs.
It is thus important that you stay prepared and enjoy your time with your children!
Additional resource:
Next steps:
Once you are ready with the above, here are some additional considerations that can wait until the child arrives but nonetheless are important.
- The naming ceremony or the first birthday many need some funds to arrange depending on each families tradition. A simple FD or RD is enough to handle these.
- Use this resource to plan for their future: Step-by-step guide to plan for your child’s education and marriage
All the Best!
We are on Google News
Use this button to add freefincal.com as a preferred personal finance source on Google News.
Explore 1,400+ videos on YouTube!
Subscribe to get posts via email!
Join 32,000+ readers and get free money management solutions delivered to your inbox! (Link takes you to our email sign-up form)Join our WhatsApp Channel
Explore our products
🔥Join our community of 9000+ users! 🔥- Use our Robo-advisory Tool to create a complete financial plan! More than 3,500 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
- Our Flagship Course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
- Join the freefincal investor circle! An exclusive space for investors, advisors, fintech employees and students to access financial planning and insurance tools, mutual fund and stock analysis tools, coding strategies and Excel macros for data extraction. 750+ members are now part of our investor circle.
- Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
- Portfolio Tracker! Track your mutual funds and stock investments with our Google Sheet!
- We also publish monthly screeners for
Our Podcast: Let's Get Rich With Pattu
On Spotify: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! On Audible: Listen to the Let's Get Rich with Pattu Podcast
Listen to the Let's Get Rich With Pattu podcast on YouTube.
Now watch Let's Get Rich With Pattu தமிழில் (in Tamil)!About The Author
Dr M Pattabiraman giving a lecture
- Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras.
- He has over 14 years of experience publishing news analysis, research and financial product development. He has over 28 years of teaching and research experience. He is also a public speaker and keynote presenter.
- He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free, AUM-independent investment advice.
- Connect with him via @pattufreefincal on X LinkedIn YouTube
- Pattabiraman has co-authored three print books.
This book helps you ask the right questions and find the right answers. It also includes nine online calculators to create custom solutions.
(2) Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want. 
Both the boy and girl versions of "Chinchu Gets a Superpower".
Most investor problems stem from a lack of poor decision-making. We made bad decisions and money mistakes when we started earning, and we spent years undoing them. Why should our children go through the same pain? What is this book about? As parents, what if we had to groom one ability in our children that matters not only for money management and investing but for every aspect of life? My answer: Sound decision-making. So, in this book, we meet Chinchu, who is about to turn 10. The story follows what he wants for his birthday and how his parents plan it, while also teaching him key ideas about decision-making and money management. What readers say! 
Feedback from a young reader after reading Chinchu Gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from a young age. The importance of money management and decision-making based on their wants and needs. Very nicely written in simple terms. - Arun.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Our publications
- Your Ultimate Guide to Travel. This is an in-depth exploration of vacation planning, including how to find affordable flights, budget accommodations, and practical travel tips. It also examines the benefits of travelling slowly, both financially and psychologically, with links to relevant web pages and guidance at every step. Get the PDF for Rs 300 (instant download)
- How to profit from content writing: Our ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!