Raising A Child – Part II

What is the approximate cost to be borne by me between the ages one to six?

An additional overhead that will have to be taken into consideration during this period is the cost associated with pre-schooling. According to the type of day care center or pre-schooling institution that is opted by you for the child, you will have to pay $10000 to $12000 (annually). Keep a sharp look out for the terms and conditions listed on the health coverage because you will be able to save considerably (once again), by opting for the right comprehensive package.

What are the costs that should be undertaken between the ages six and twelve of the child?

During the initial years, you will have to be worried about your health care package. However, when the child is nearing 12, he or she will not be prone to diseases (like they used to be). The immunity system of the child might receive that much needed boost during this time, and hence you will have to pay considerably lesser! The main expenses for the child during this stage will be clothing and of course entertainment. Opting for a private school for the child might seem like a bad idea then.

How can I keep a check on the amount spend on my child between the ages thirteen to eighteen?

It goes without an explanation that the entertainment needs of the child increases largely during this time. The child will be aware of the fashion changes occurring in the neighborhood and will compete with their friends to “look flashy”. The food and clothing requirements of the child will surge past the $3000 mark. The same holds true, if the child asks for a car; also please add the cost of the gas along with auto insurance (which must be remitted yearly).

How should I impart money-saving techniques to the child?

Even from a very early age, it is the duty of the parents to generate awareness about money-saving techniques in their child. Never impart high amounts as pocket money because you are inviting more trouble by doing so. Open up a savings account in the nearest bank and make it mandatory to deposit the pocket money or any other extra savings in the bank account. Giving a credit card to the child must be thought about seriously, likewise!


About Praveen Pious Francis
A part-time blogger who has a wide range of interests including investing in the stock markets across the globe and broadband technologies in India.

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