Views from Daddy M
We had highlighted the myths and realities of raising a child from age 0-2. Now it is time to look into the finanical aspect of raising a child in Singapore.
- Medical Expenses
Set aside funds for baby’s doctor visits. In fact set aside funds for the child’s injection schedule which could last till 2. A ballpark figure of $2000 should cover the doctor’s visit over the course of the next 2 years.
- Infant / Child care
Some help needed...
If you worry about all the expenses, do not fret. There are a couple of government incentives and subsidiaries that may be used to ease the financial burden.
- Baby Bonus
$4000 – 1st and 2nd child
$6000 for 3rd and 4th child
- Child Development Account (CDA)
$12000 – 3rd and 4th child
$18000 – Fifth and subsequent child
Note Government will only match the funds you contribute to CDA up to the limit specified. CDA may be used to pay fees for approved institutions, medical related expenses, medishield or medisave approved private integrated plans. See here for more information.
- Infant care subsidy ( for children aged 2 to 18 months)
- Childcare subsidy ( for children are above 18 months to below seven years)
As you could, the financial cost of raising a child in Singapore is not cheap. As an estimated figure, with all bells and whistles, it may cost as upwards of $50 000 to get the best stuff for the child. However with proper planning and goodies (including baby bonus, CDA and subsidiaries) from the government, you may be able to cut the cost down. For basic expenses including subsidiaries, you may be looking at a more palatable $15 000 or less for the first year.
Nevertheless, do not let the cost of raising a child deter you, as the rewards may surprise you.
Most importanty, enjoy these moments as a parent. This is the age where foundations are lay and your interactions with the child would determine his/her character as they blossom.
Your child is not a cost or a liability, but rather a source of pride, joy, love,happiness with a tinge of ups and downs. Treat them as such and you would realise what you have is priceless.