Daughter’s Marriage

Starting a family is a considerable financial load. Your little one may bring a lot of joy but will also no doubt bring a lot of bills. Do not dilute the joy by not planning for your daughter’s marriage. Even though we are in the 21st century, the majority of parents still start saving for their daughter’s marriage from day one. The pressure one undergoes today to spend a lot of money for our “Children’s Marriage” sometime in future is something which is there on parents. The ‘rule’ in our society that girl’s side bear the main expenses has not changed. It is going on since years.

For most people, major life events such as daughter’s marriage prompt them to start thinking more seriously about planning for the future. These happy events represent a tremendous opportunity to begin taking positive steps to ensure you can maintain your lifestyle while also saving for the future.

Things to consider can include how much will you need for your daughter’s marriage after educating them – especially if considering making jewelry, preparing for part of their marriage expenses. These can be expensive propositions, but manageable with planning – and often well worth the additional investment in terms of finding better prospects for your daughter’s future in-law.

For many people – especially those who married and had children later in life – the need to save for marriage expenses may come close to the time parents are approaching retirement.  Having worked hard all their lives and planned for a comfortable retirement, will the high cost of marriage come as an unpleasant surprise?

These days, you cannot estimate what your daughter’s marriage will cost by recalling what you parents spent for yours. Especially with the continuance of traditional functions like Mehndi, hiring of event managers or other customs innovated in the recent past. And, you may be pleasantly surprised at how little you need to put aside – if you start early.

Take for example one simple comparison:

You need Rs.10 lacs at today’s cost by year 2026.

The future cost of your daughter’s marriage in 15 years works out to Rs.27.59 lacs.

You need to invest Rs.5,468 monthly or Rs.66,079 annually.

(Based on an anticipated inflation rate of 7% p.a. and an expected return of 12%)

Placing that same amount into a savings account over the same period of time would yield just Rs.12.03 lacs.

And, depending on the Direct Tax Code in India, mutual fund investment tools can benefit from tax-free returns on the capital gains.

SenSage can help you create the right mix of investment options, and offer guidance on how much is enough – or will be enough once your daughter reaches a marriageable age after completion of education.

To define and see the results of your Child’s Future (Click here)