Wednesday, February 13, 2019

I DONT WANT A 2ND CHILD...THE COST IS TOO HIGH


The government wants to have two Kids but I am happy with one only. Having two Kids is just like tow EMI of high-value amounts and that too will keep increasing and not a floating rate. Growing up one child is a costly affair. Economist around the world might have been busy with the market and economic research but the cost of growing up a kid is more of economic importance. The child is a commodity.

Different countries have different cost of growing up kids. Education has become a business.  One child is enough for parents and they don’t dream of having the 2nd one. China is a country where its parents pray to have only one child. In fact, the demand and industry size of contraceptives has grown by leaps and bounds.

The rising cost of education, quality of nutritious food, health check and medical treatment cost and having a good career has become a costly affair. This is an organized market where the child is the product and rest all are the by-products.

 The climate of China forces to have higher medical cost and checkups followed with imported food items since the water of China is also polluted with toxics.

Coming to the population front China's population growth slowed in 2018 with 15.23 million live births, a decline of 2 million from the year before, according to the National Bureau of Statistics. According to a 2017 study it has been found that more than 50% of families have no intention of having a second child. Further, 240 million Chinese families are over the age of 60 in 2017. This rate is just going to grow.

Until the 1990s, most people in China used public education, which was free or had a minimal cost. Medical cost is a nightmare in China. It has one of the world’s highest corruptions in the medical segment where doctors are bribed for taking care of kids.

According to world health organizations,on 60+ aged populations in china will soar to 90% to 240 million by 2020. Parents in china have to face significant problems of raising kids and government support is not enough to feed the little ones.

India is no less far from the rising cost of education. Schools don’t teach as much as they have to go to a coaching class where they pay hefty money to get educated. In a research study by the National Sample Survey Office (NSSO) reported that between 2008 and 2014, the average annual private expenditure for general education (primary level to post graduation and above) has shot up by a staggering 175% to Rs6,788 per student. During the same period, the annual cost of professional and technical education has increased by 96% to Rs62,841 per student.

Private coaching education industry is one of the most lucrative and never plummeting business models. Private coaching accounted for 15% of the average total expenditure on general education. As many as 35% of students across the country have to undergo for coaching classes in the junior levels and this number increases to 60% during the higher standards.

The point is an education for a child  is now a commodity and it is high demand and will continue till the end of the civilization. Schools and teachers and coaching centers are all interlinked in this game. Many politicians have also deployed a significant amount of investments in developing the network and making significant revenue from these sources.

In another survey, its has been found that Indian parents say they contribute ₹ 3,61,975, on an average, towards higher education. The entire spend is about ₹ 7,77,654 for the university programme, including bills and lifestyle costs. From tuition fees and accommodation to laptops and textbooks, parents’ spending on their children’s university education includes various costs. Of the total funding, 75% goes towards tuition fees. 

Parents or the child takes education loan which is another by product of education cost.Well, education is a big cost and having two kids is just like having TWO EMI running simultaneously with a long term commitment.

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