Marriage planning means putting money aside and making smart investments so that when your child gets married, you have enough to cover the costs and make the celebration special. It's like saving for a big party in the future to ensure everything goes smoothly.
A marriage calculator is an online tool that helps calculate the marriage cost of your child’s dream wedding. By inputting the child's age at the time of marriage, this calculator provides a projection of the future wedding costs. It helps in accomplishing the financial planning for the child's marriage by enabling you to start building a fund when the child is young.
The marriage planning calculator works on the concept of future value to calculate future wedding costs.
The formula is given below:
FV= PV(1+R) ^N
Where,
FV= Future Value of Wedding Costs
PV= Present value of wedding expenses
R= Expected Rate of increase in wedding costs
N= Duration of investment (Child’s age at marriage – present age of child)
For instance, consider a scenario where a child is currently eight years old, and the planned age for their wedding is 25 years. You estimate the current wedding expenses to be Rs 15 lakh, taking into account an inflation rate of 8%.
Inputting these values in the formula
FV = 15,00,000 * (1 + 0.08) ^17So, the estimated future cost of the child's wedding, factoring in inflation, is approximately Rs. 55,50,027.
The marriage calculator offers user-friendly functionality, requiring the following steps for utilization:
Upon completing these steps, the calculator will determine the future wedding cost and devise an investment strategy that includes Systematic Investment Plans (SIP) and lump-sum contributions.
