With the GST adjusted to 8 per cent this year, it has affected the way this couple manages their expenses — especially so now that they have an eight-month-old daughter. Graphic designer Yap Ning, a mother, spoke to AsiaOne on Tuesday (Feb 14), sharing how she and her husband had to grapple with raising their child and making ends meet amid rising living costs.
The 31-year-old said that one of her biggest challenges was “balancing their financial considerations and raising their child.”
“When my maternity leave ended, I had to face the decision of whether to send my child to infant care and continue working or to become and stay-home mum and switch to a part-time job.”
Ning eventually decided to continue working, citing the need for two sources of income.
Beyond feeding her family, this mother added that she has been trying to cope with the rising cost of living by cutting down on unnecessary expenses like shopping and entertainment.
She’s also started opting for reusable diapers and wet wipes for her child, as these are more cost-saving as compared to disposables.
“At the moment [the increased GST] has not affected us very significantly, but in the long run we might still feel the effects more if our income doesn’t increase at the same rate.”
Helping young families
Luckily for Ning’s young family and many others, the various government support measures announced by Deputy Prime Minister Lawrence Wong couldn’t have come at a better time.
Among the several support measures for Singaporeans announced by Wong today, Ning qualifies for the Assurance Package and a $400 top-up to her daughter’s Child Development Account (CDA).
This mother and her family will also be receiving more CDC vouchers and U-save rebates.
But that’s not all.
Additionally, Wong announced that the amount to be given out under the GST Voucher scheme will go up from $500 to $700 in 2023 for those residing in homes with annual values of $13,000 and below.
This will be raised to $850 from 2024 onwards.
Separately, the cash component of the Assurance Package will be increased by between $300 and $650 for eligible Singaporeans, bringing the total amount received by each adult Singaporean to between $700 and $2,250 over five years.
More kids, more support
And if this couple decides to have another child in the near future, they’ll be getting even more support.
This is because Singaporean babies born on or after Tuesday will get $3,000 more in the form of the Baby Bonus cash gift.
Eligible first- and second-born children will receive $11,000, up from $8,000. And for the third child onwards, this will be increased from $10,000 to $13,000.
The funds will also be paid out over a longer period of time, until the child turns six-and-a-half years old.
To encourage women to stay in the workplace after having children, the Working Mother’s Child Relief will also be changed from a percentage of the mother’s earned income to a fixed dollar relief, for Singaporean children born or adopted on or after Jan 1, 2024.