- February 13, 2019
- Category: Money Management
Raising kids from the millennial generation was so much easier than it is now. In this highly networked world today, the choices are infinite for Generation Z kids. The parental pressure is hence immense in giving the child the best of everything. The cost of raising kids today has also gone up. And not only due to inflation, but also because of the societal and parental shift in the way kids are being raised today. This has led to new age parental expenses. Here are expenses which today’s parents feel the need to shell out:
1. External support system: Nuclear families and double income earning couples are the norm now in most households. Both partners commit 9-12 hours of their time to work in the corporate world. While parents of either partners may pitch in to take care, this may not always be possible due to individual family situation. Such couples have to inevitably rely on external sources for support in raising their kids. These include:
- Day care centres: In today’s times, parents are not anxious or hesitant to put their babies in a day care centre. Day care centres today include the local ones where parents usually go by word of mouth as well as the high-end professional ones having a chain and following the franchise model. On an average, day care centers charge anywhere between Rs.5000-12,000 per month.
- Nanny/Maid: Under the supervision of old age parents, many couples employ a 12 hour or full-time nanny who takes care of their kids. They are also responsible for miscellaneous household chores and many double up as cooks too. A nanny/maid on an average charges Rs.10000-12000 per month.
2. Pre-schools: Gone are the days when children entered school premises only after completion of 3 years. Now children as young as 15 months old go to private pre-schools. So, today’s contemporary day care centers take care of your child’s learning, nutrition, cognitive, social, emotional development, etc. For this, pre-schools charge an average Rs.40,000-50,000. The high-end ones charge upward of Rs.1 lakh including transportation.
3. Extra-curricular activities: Beyond grades, every parent prefers holistic development of his child. From a young age, every parent wants to harness their children’s talent and also inculcate in them communication, leadership, problem solving and creative skills. Extracurricular activities have thus become an evitable part of a child’s education – be it dance, sports, drawing, swimming, martial arts, etc. While the cost of such classes depends upon the location, teacher and activity, parents usually end up shelling out an average Rs.5000-10000 per month on extracurriculars.
4. Summer Camps: Vacations are the time especially when busy parents want to channelise their children’s energy in the right direction. Keeping them off mobiles, tablets and video games is a tough task. Summer camps have become a popular way to keep the children occupied during vacations. These may include regular sports camps, adventure camps, exotic activity camps like organic gardening, story-telling, canvas painting, etc. Parents usually shell out an average Rs.5000- 15000 on such camps for their kids.
5. Academic coaching: Call it a fad or peer pressure, but more and more children today already start preparing for competitive exams even before they appear for their 10th board exams. Children studying in 7th-8th standards enrol for coaching classes to prepare for competitive exams like JEE, NEET, etc. Parents shell out an average Rs.50,000-100000 on such coaching.
6. Themed Birthday parties: Birthday celebration of kids at home with family and neighbors, playing passing the parcel, cake and wafers is so passe. Today a child’s birthday party is a big event and many parents do not mind splurging a bomb on it. To manage an elaborate guest list, parents prefer to celebrate such parties at hotels, play areas, etc. Many hire event managers which take care of the entire celebration right from sending out the invites, decorations, entertainment for kids, organising themes, cake, food, return gifts, etc. Parents shell out an average Rs.35000 to Rs.100000 on such parties.
7. Foreign Education: Sighting better job opportunities abroad, more and more students are opting for foreign education nowadays. With scholarship programs and student loans on offer and the amount of information available online, youngsters are exploring study opportunities abroad. For the better future of children, parents shell out anything between Rs.40-50 lakhs on their kid’s foreign education.
The modern parent today wants to give the best to their kids and it comes at a cost. Hence, it is better to financially plan for these expenses rather than randomly arranging for the pay when the expense is due.