Raising a child from Zero to Two: Financial Cost in Singapore

Parenting 101

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.

Finance Expenses

• Medical Expenses

The pre-baby and delivery cost cost amount anywhere from $3000 to $10000 depending on individual and wards selected. The medical expenses continues post child birth.
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.

• Essentials

Funds should be set aside for baby essentials such as diapers, clothing, strollers, milk powder (if you intend to stop breastfeeding) Over the cost of 1 year, depending on individuals, these could range from $200-$500 per month.($2400 to $6000 per year) If the child has a older sibling, it may be good to reuse the older siblings clothes and toys to cut down on expenses. So if you intend to have more than 1 child, it may be wise to hold on to the infants clothes of the 1st born or the older siblings.

• Insurance

Consider purchasing an insurance policy for the child. Do consider medishield plans by various insurers for hospitalisation. The cost varies depending on the insurance terms. For us, we paid about $4000 per annual for various forms of insurance.

• Infant / Child care

Do set funds aside for infant care and subsequently childcare (if needed) Childcare Centres charge as much as $600 to $2000 plus for infant care / childcare. Kindergartens charges are significantly lower.

• Helper

Lastly, if you need a helper, set aside funds for that as well. An extra pair of hands in the house in the form of a helper could ease some work around the house. Be prepared to fork out at least $ 450 in today’s market per month and a maid levy of $170 (concession rate). With living expenses at $300 plus per month, a helper can cost about $1000 per month.

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

Cash Gift

$4000 – 1st and 2nd child

$6000 for 3rd and 4th child

• Child Development Account (CDA)

$6000 -1st and 2nd child

$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)

The maximum infant care subsidy per infant is $600 a month for working mothers or single fathers, and $150 a month for non-working mothers or single fathers

• Childcare subsidy ( for children are above 18 months to below seven years)

The maximum infant care subsidy per infant is $300 a month for working mothers or single fathers, and $150 a month for non-working mothers or single fathers

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.