The Rs 78,000 Salary, Rs 8,000 Savings Shock: Why Can't A Good Salary Sustain A Family In Chennai? Know Shocking Story

A Chennai couple's struggle to save on a Rs 78,000 salary sheds light on the soaring cost of raising a child in urban India, now estimated at Rs 38-45 lakh.

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The financial realities of raising children in India's metropolitan cities are becoming increasingly stark, as highlighted by a Chennai couple's candid admission on Reddit: despite a combined monthly income of Rs 78,000 after taxes, they struggle to save more than a meager Rs 8,000. Their story paints a vivid picture of the immense financial commitment modern parenting demands, even for seemingly moderate earners.

The couple, who are raising an 8.5-month-old infant in Chennai, pinpoint their child-related expenses as the primary drain on their finances. Their largest outgoings are rent and daycare, totaling Rs 46,500 per month. They emphasized their unwillingness to compromise on these costs, prioritizing their child's safety, hygiene, and proximity to care facilities over accumulating savings.

Beyond these significant fixed costs, their monthly budget includes Rs 10,000 for groceries and daily essentials, Rs 8,500 for travel (petrol, auto, metro), and Rs 3,000 specifically for baby diapers. Utilities like electricity and cooking gas add another Rs 2,000 to their expenses. With total monthly outgoings reaching Rs 70,000, they are left with a precarious Rs 8,000, which serves as their sole buffer for savings and emergencies.

Adding to their financial pressure, the couple revealed they receive no family support due to their marriage being against their relatives' wishes. This lack of a backup system has pushed the wife to seek part-time employment to supplement their income and provide more financial breathing room.

The Mounting Cost Of Raising A Child In Urban India

Their experience echoes broader concerns about the escalating costs of parenthood in Indian cities. Meenal Goel, a Bengaluru-based startup founder, recently highlighted this issue on LinkedIn, estimating the total cost of raising a single child in an average Indian middle-class household, from birth through college, to be between Rs 38 lakh and Rs 45 lakh.

Goel's detailed breakdown of expenses by life stage reveals the significant financial demands:

Infancy to Preschool (Ages 0-5): This period is particularly costly, estimated at ₹7 lakh to ₹8 lakh. Major expenses include medical costs (delivery, hospital care: ₹1.5 lakh-₹2.5 lakh), immunizations (₹30,000-₹50,000), and essential baby products like clothing, food, and diapers (up to ₹3 lakh). Playschool and daycare facilities average around ₹2.5 lakh.

School Years (Ages 6-17): Education becomes the dominant expense, totaling approximately ₹17 lakh. Annual school fees alone can accumulate to ₹12 lakh, supplemented by ₹3 lakh for private tuition and coaching. Other costs like uniforms, electronics, books, and extracurricular activities add another ₹2 lakh.

Higher Education (Ages 18-22): College education at a private institution typically costs around ₹10 lakh, with an additional ₹3 lakh for hostel accommodation, meals, and general living expenses, bringing this stage's total to approximately ₹13 lakh.

Postponing Parenthood: A Growing Trend

The staggering financial implications are now a genuine concern influencing family planning decisions across urban India. Goel observed that many prospective parents are postponing or reconsidering having children, feeling unprepared to meet these steep expenses.

A 2023 analysis by Mint further underscored the heavy financial burden on urban Indian families. For instance, a Mumbai family with an 8-year-old boy reportedly spends ₹1.72 lakh annually on tuition alone, plus ₹2,000 monthly for after-school activities, and ₹10,000-₹12,000 annually on healthcare. A Bengaluru family with two young boys faces ₹80,000 annually for the older child's education and nearly ₹1.8 lakh on car and fuel expenses. Even a relatively more affordable city like Indore sees schooling costs close to ₹1.5 lakh per year.

The financial strain often begins even before birth, with a Caesarean delivery potentially costing ₹1 lakh, projected to rise to nearly ₹3.7 lakh in a decade. Early immunizations for a child in their first 18 months can range from ₹60,000 to ₹80,000.

These figures illustrate a raw and realistic picture: raising a child in urban India, even with what appears to be a decent salary, often involves tight budgeting, significant sacrifices, and a constant struggle for financial stability, leading many couples to rethink their family planning in 2025.