Plan your child’s dream wedding with the marriage expense calculator

Marriage expense calculator: What exactly is it?

A marriage expense calculator² is an online tool that estimates the probable cost of your child’s preferred marriage ceremony. Here one needs to enter information like the child’s current age, the probable age of marriage, the tentative cost of the wedding ceremony at today’s date, and an approximate rate of inflation. Based on that, the child marriage expense calculator figures out how much money is required for a similar ceremony when the child reaches the marriageable age. It also aids in estimating how much monthly investment is required to reach the target. Thus, a marriage expense calculator may help the parents plan the savings and investments accordingly to accumulate the required corpus.
 

The method of estimation

A marriage expense calculator in India²does its estimations based on the idea of future value. It operates on the formula:

FV = PV (1 + R)^N

Where FV = Future value of wedding expenses

             PV = Present value of wedding expenses

               R = Rate of return

              N = Time available for investment

So how does that function?

Suppose Mr. Gupta has a 5-year-old daughter, whom he plans to marry off at the age of 25. In the current time, he would have spent Rs 10 lakhs for the wedding. Considering the average inflation rate at 6%, how much will he need for the marriage when the child grows up?

Here, PV = 10,00,000

R = 6% = 0.06

N = Child’s age at marriage – current age = 25 - 5 = 20

Therefore, the projected cost of wedding is:

FV = PV (1 + R)^N

= 1000000 (1 + 0.06)^20 = Rs. 32,07,135.47

i.e., approximately Rs 32 lakhs

Now, if Mr. Gupta has already made some investments for the purpose, he can fill in the figures. The child marriage expense calculator will take that into account too and arrive at the monthly investment needed to accumulate the desired corpus.
 

Will it help you?

The moment new parents hold their little one for the first time, new responsibilities are born. It’s now their duty to raise the child, shape his/her future, and turn their dreams into reality. While every parent wants their child to have a great academic career, a dream wedding is also on the wish list. No matter how daunting it may seem, with proper planning in place, even a lavish wedding for your little one may seem like a cakewalk.

A marriage expense calculator in India may turn out to be a useful tool for parents who are puzzled about how much money they need for the wedding and how to start saving for it. Here’s a list of its benefits.
 

Easy and quick estimation:
 

All you need is to enter the details to arrive at the budget requirement when your child reaches at marriageable age.
 

Estimation of monthly investment:
 

It keeps you on track and plans accordingly to achieve the target.
 

Inclusion of probable inflation:
 

Parents often fear that they might fall short of funds at the time of the wedding. With the rate of inflation incorporated in the calculation, it may be a less worrying task.
 

Less financial stress^[3]:
 

Since the child marriage expense calculator offers a fair idea of how much money you need, it might save you from sudden burdens like taking a loan or disturbing a retirement corpus. Rather, you can choose your own pace to build the corpus steadily.
 

The way ahead

Once the parents get a glimpse of how much fund they need for their precious one’s wedding and the monthly investments required to achieve it, the rest may be an easy deal. They can chalk out a plan based on the financial situation, affordability, and choose savings and investment opportunities that fit the bill. Here’s what you can do:

• Starting early^[4] is always helpful when it comes to investment. This helps you to save a smaller amount regularly for a longer time horizon and grow the money through the power of compounding.
• Apart from traditional options like fixed or recurring deposits and insurance plans, you can choose child plans specially designed for this purpose^[5].
• Child plans^[5] have a combination of insurance and market-linked investment opportunities that allow you to grow your money by earning returns from market-linked funds while keeping a safety net for the unforeseen circumstances. Child plans like this, offer a death benefit and continue to be active till maturity through waiver of premium option. Under this feature, the plan continues to be in force despite paying a death benefit in the event of parent’s demise. Here the remaining premiums are waived off by the insurer and plan benefits continue.

Stay away from unnecessary costsⁱ[4] just for peer pressure and social status. This may help you rationalize and spend on things that have bigger utility.

And all of these can start from a marriage expense calculator!
 

FAQs

Q1. Why should I use a marriage expense calculator?

A marriage expense calculator brings the future wedding budget for your child right to your fingertips. The calculation is quick, and all you need to do is enter basic details like the child’s age, his/her probable age of marriage, an approximate rate of inflation, and the amount of money you would have spent if the marriage happened now. Based on the projected budget, it also calculates how much you would need to save or invest to reach the target. These are the reasons why you may benefit from using a marriage expense calculator^[2].
 

Q2. What information do I need to put in a marriage expense calculator?

To project the probable cost of your child’s marriage in the future and the amount you need to invest for that, the marriage expense calculator needs the following information^[2].

• The current age of your child
• The age at which you want your child to get married
• An approximate rate of inflation
• Your affordable wedding budget on today’s date
• Any investment you’ve already made

References:

^[1]https://www.hindustantimes.com/business/average-wedding-budget-rs-36-5-lakh-in-2024-up-7-from-last-year-report-101732946638686.html

^[2]https://cleartax.in/s/marriage-calculator

^[3]https://old2.mintboxadvisory.com/marriage-plan-caluculator/#1633188080956-b1c92317-9635

^[4]https://www.personalfn.com/guide/steps-to-plan-your-childs-marriage

^[5]https://www.financialexpress.com/money/sukanya-samriddhi-yojana-vs-child-insurance-plan-which-one-is-better-to-secure-your-childs-future-2434973/