Rathandeep – Finance Coach for Women

Financial Planning For Your Child’s Future Wedding

Whether or not your child wishes to marry in the future, your plans to ensure they have the best wedding day take priority the day they are born. Mainly three factors affect the finances of your child’s future wedding day:

  • The rising cost of weddings over the years
  • Your child’s security before marriage
  • Your child’s security after marriage

Weddings and marriages take place in a social environment where everyone, including family relatives, and friends, is invited to celebrate this joyous occasion. However, maintaining a proper income will not suffice the costs to be incurred on the big day. Therefore, you give an early start to begin financial planning for your child’s future wedding and married life.

Planning Finances For Your Child’s Future Marriage

Planning for your child’s future marriage can get overwhelming because you are aware of the costs that have already skyrocketed today. From deciding the venue to planning the attire, catering, gifts, inflation, wedding trends, specific family traditions, and so on, you can involve these factors to estimate future costs.

What you must know is that wedding costs typically increase 3-fold every decade. Therefore, with an average cost of Rs 20 lakhs for a wedding today, you can expect to spend around Rs 60 lakhs in 10 years from now. Therefore, you will have to plan and invest wisely for your child’s marriage in the future.

Considering SIP or a Systematic Investment Plan will allow you to invest a fixed amount at regularly defined intervals in a Mutual Fund Scheme. So, in the scheme of things, what should be your asset mix?

You may decide to go the conservative length and start with a marriage plan by investing in a balanced fund. So, to maintain less risk, you could build balanced funds on an investment with a 65% exposure to equities and 35% exposure to debt. A balanced fund could give you a return of approximately 12%, which means that if you start with an SIP of Rs 10,000 every month in a balanced fund, you may get a corpus of Rs 50 lakhs by the end of 15 years.

However, there may be a better way of calculating and planning financially for your child’s marriage. Let’s say you look toward a long-term perspective rather than a balanced plan. You could do an SIP on an equity fund for 12 years, the corpus of which you can then convert into a debt fund for three years to prevent equity market risk.

The equity fund redemption will be tax-free and the debt fund redemption will help you gain long-term capital gains tax at 10%. Considering the tax outflow, you can still expect a CAGR return of around 16.2%. Adopting this type of plan can limit your investment to Rs 7000 per month instead of Rs 10,000 per month. 

Don’t forget to use an adequate insurance plan to avoid risks associated with your absence, and other calamities. Hence, adopt an insurance plan to cover long-term savings and one that also covers a regular annuity flow for your child post-marriage. This is to ensure that your child’s security is built into the financial plan. 

Do you need assistance with financial planning for your child’s future marriage? Get connected to learn more about financial freedom with courses and coaching sessions tailored to your future needs.


  1. Is there a way I can calculate approximately how much I will need to save for my child’s marriage in the future?

You can use a child’s marriage planning calculator to help you identify the projected costs for the future. 

  1. Is financial planning for my child’s marriage in the future a one-time thing?

You could say that it is a one-time planning commitment. However, you may have to revisit your investment planning to introduce or manage a few asset changes in cases of inflation market trends, etc.

  1. Is it possible that through financial planning, I will be able to secure my child’s future even after they get married?

Yes, with the right guidance and professional help of a finance expert and planning coach, you will be able to secure your child’s future even after they’re married.

What do you think?

login ~login ~login ~login ~login ~login ~login ~login ~login ~login ~login ~

search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search ~ search