Raising a child presents unique challenges for the parents taking a toll physically, mentally, emotionally and financially. Now imagine adding a few more variables where the parenting situation becomes more complex if the child has some additional needs or is diagnosed with a rare disease contributing to a delay in development. Now this not only presents more unique, emotional, logistical challenges, but one of the most pressing issues for families with special needs is having long-term financial stability. This becomes very evident when you start comparing costs of raising a child in India vs cost of raising a child with special needs.
The costs of raising a child in India will vary based on multiple factors like income of the family, location of the family, and the lifestyle they are leading, however raising a child with special or additional needs often involves certain unforeseen, additional expenses that become quite substantial to manage. Here’s a comparison between the two:
- Basic Costs of Raising a Child in India
- Education: As per a 2023 survey, Indian middle-class families can expect to spend anywhere about ₹20-25 lakh from birth right through the age 21 on school supplies, education and extracurriculars.
- Healthcare: Standard healthcare costs, that include things like vaccinations, necessary medical check-ups, and minor health issues, typically amount to about ₹2-5 lakh over the child’s early years depending on the location.
- Lifestyle (i.e. Food, Clothing, and Miscellaneous): Taking inflation into consideration, annual costs for food, clothing, and basic needs generally range from ₹50,000-1 lakh.
- Additional Costs for Raising a Child with Special Needs
- Therapy and Medical Services: Special needs children will certainly require ongoing therapy, such as speech, occupational, behavioral therapy and other rightful interventions depending on their condition. Depending on their location, each individual session with the therapists can cost ₹500-₹2,500, with annual costs ranging from ₹1-3 lakh depending on frequency.
- Specialized Education and Tutoring: Due to lack of proper special needs school across any part of India, many parents who have children with special needs depend either on private schools or private tutors that can accommodate their child’s needs. This can add another ₹1-3 lakh (approx.) annually.
- Caregiver and Support Services: Some families where both parents are working may require part-time or full-time caregiver support. A trained caregiver depending on location can cost ₹15,000-₹30,000 per month, adding up to ₹1.8-3.6 lakh annually.
- Assistive Devices and Medical Equipment: The child may also additionally require assistive devices (wheelchairs, hearing aids, etc.) or adaptive tools for learning costing between ₹50,000 and ₹1.5 lakh (approx.)
- Long-Term Care Planning: Many families start financial planning and savings specifically for the child’s future care and support, given that they may need assistance throughout adulthood. This can involve investing in trusts, insurance, and savings plans that range in cost depending on the family’s income and financial goals.
- Comparative Overview of Total Costs
- General Cost of Raising a Child: For middle-class families in India, the average total cost of raising a child from birth through young adulthood can be anywhere between ₹30-40 lakh.
- Cost for Raising a Child with Special Needs: The additional healthcare, therapy, and support services depending on the child’s need can bring this cost up significantly, sometimes doubling or tripling the average costs, with lifetime costs reaching ₹60-1 crore or more, depending on the level of support needed.
The figures expressed above are just an indication of the total costs that a parent having a special needs child may encounter (without factoring actual inflation rates). Many at times the expenses can grow due to unforeseen events and therefore it becomes imperative for parents to have a sound financial plan for the long-term welfare of their child and themselves. Hence, financial literacy becomes crucial to manage costs effectively and secure not just the child’s future but also the parents.
Below, we’ll cover some common financial struggles for parents of special needs encounter, why early financial planning is essential, and strategies to overcome these hurdles and maintain financial stability as they navigate through these complexities.
Common Financial Struggles Faced by Parents of Special Needs Children
- High Medical and Therapy Costs
Depending on your child’s needs ongoing therapies, medical equipment, and specialized education to support their day-to-day living can place a significant strain on the family’s finances. Additionally, if the child has conditions that require lifelong support, frequent medical interventions then these expenses may increase significantly with time. - Reduced Earning Capacity of Household
Many parents having special needs children, particularly mothers, may either reduce their work hours or leave their jobs to focus entirely on caregiving to support the child, thereby affecting household income. This loss of income makes it harder to cover any additional costs associated with raising a child with special needs. - Limited Financial Aid, Government Schemes and Insurance Options
In a country like India, the availability of specialized insurance products for individuals with special needs or disabilities is limited. The ones available have limited coverage, which leaves parents with out-of-pocket expenses. Also there are some government programs offer support to such children through some scheme, but most often than not they often fall short of covering all necessary costs. - Long-Term Financial Uncertainty
Having a special needs child and planning for the future is quite complex, as everyday could be a new challenge with the probability of encountering an unforeseen event being much higher. Also, parents must consider their child’s long-term care needs and financial wellbeing, especially when they may no longer in a position to be able to provide support.
Why Financial Planning Is Crucial?
Just like a parent raising a child with no or minimal challenges, parents having special needs child(s) must essentially accommodate early and proactive financial planning. Very importantly, this must start as soon as the child is diagnosed with a condition, and therefore parents must consider both immediate and long-term expenses.
Below are few reasons as to why planning ahead for a better financial future is crucial:
By setting up a structured financial plan, parents can reduce the financial impact as well as proactively manage ongoing and future expenses. Planning early allows them to save and invest wisely, minimizing stress.
Unfortunately the bitter reality is that the special needs child’s future often depends on how good or bad the parents’ financial arrangements are. Ana absence of careful planning from the parents’ end may lead to the child facing challenges in accessing either the right care and support, relevant therapies, or services that are crucial for a stable life.
Most parents living in India are completely unaware of the specific government schemes, tax deductions, or support options available to them. It doesn’t necessarily come from their unwillingness to explore as they are fighting multiple battles to raise the child but just by getting a better understanding and leveraging some or all of these support, families having special needs child can alleviate some of the financial burden that they encounter in this process.
Conclusion
Right financial planning and literacy are not just essential but empowering for parents of children with special needs. A clear, well-informed approach with the right guidance about how to manage their finances can not only provide security and peace of mind, but most importantly enable these families to focus on what matters the most: their child’s well-being and development and crucially build a sustainable future for their child.