Babies can be tiny, but they come with a big price tag. Preparing for the financial implications of parenthood is crucial for ensuring a smooth transition into this new chapter of life. Welcoming a new member into the family entails significant expenses, from prenatal care to the first few years of the child’s life. If you are planning a family in the near future, a parent, or parents-to-be, one of the most vital things to consider is how much it is going to cost.
While the expenses outlined here provide a comprehensive overview, it’s essential to adapt financial planning according to individual circumstances, lifestyle, and location. By proactively budgeting and investing in appropriate financial tools like child insurance, parents can navigate the financial journey of parenthood with confidence and security.
Remember, while the costs may seem daunting, the priceless joy of parenthood makes every penny worth it. Here’s a breakdown of what to expect and how to financially prepare for the arrival of your little one.
Prenatal Stage
During the prenatal stage, ensuring the well-being of the expecting mother is paramount. Here’s a breakdown of the key expenses:
Medical Expenses: On average, expecting mothers incur a monthly medical expense of Rs 2000, totaling Rs 14,000 from pregnancy confirmation to the eighth month.
Doctor’s Visits: Expect approximately two doctor visits per month, costing Rs 1,000 each, summing up to Rs. 15,750.
Sonographies: With a recommended fortnightly scan, expect to spend around Rs 50,000 for 10 to 12 scans throughout the pregnancy, approximately Rs 5000 per scan.
Maternity Clothing: Budgeting for 12 to 18 pieces of maternity clothing, costing around Rs 1,000 each, totals Rs 18,000.
Grocery Expenses: Anticipate an increase of around Rs 3,500 – Rs 4,000 per month in grocery expenses to meet nutritional needs during pregnancy period.
Cost of Hospitalisation
While the aforementioned expenses cover the essentials, there are additional costs such as hospitalisation, which significantly impact the overall expenditure. In this stage, the hospitalisation cost is the major expense. This could largely depend on the type of option chosen by the parents as well as the doctor. The two options of delivery are either normal or C-section delivery. While C-section delivery could cost anywhere between Rs 60,000 and Rs 2 lakh, a normal delivery could cost about Rs 40,000 and Rs 1 lakh depending on the type of hospital chosen or the city you live in.
Child’s Early Years
Once the baby arrives, the first few years require meticulous attention to medical care and essential needs. Here’s a glimpse of expenses during this stage:
Paediatrician Fees: Budget for Rs 500 per visit, occurring once every three months until the child turns 2 years.
Vaccination Costs: BCG vaccine is given at birth and later may cost between Rs 100 and Rs 1,000. Hepatitis B vaccines may cost around Rs 5500 to Rs 6000, based on the composition, company, and hospitals. Rotavirus vaccines may cost anywhere between Rs 600 to Rs 1,500. MMR may cost anywhere from Rs 150 to Rs 600.
Diapers: Estimating 5 diapers per day for a newborn, monthly diaper expenses sum up to Rs 26,400.
Nutrition Food: Babies need special nutritional drinks which can cost around Rs 1,000 per month.
Nanny/ Caregiver: The cost of nanny or caregiver in daycare is a significant factor for parents. The cost is estimated at Rs 13,000 to Rs 15,000 a month.
Child Insurance: Securing the child’s future, child insurance plans offer a lump sum payout on maturity to fund significant life milestones like education and marriage of your child.