Children bring unwavering joy and warmth to a family. But the costs of bringing up a child in Singapore might be discouraging. Find out how maximising your Child Development Account can boost your family’s financial options.
Starting a family is a life-changing decision.
As parents, children are a long-term investment. To some, it’s to guard against old age and to have someone to depend on and provide for them when they are old and weak. This however, comes with required outflow at the start and the expected returns are reaped when the kids become independent working adults.
It is undeniable that the cost of raising children in Singapore is a tidy sum. The cost of living increases every year and our demands as modern-day parents also grow with time.
The Singaporean family’s typical financial set-up
With a dual income household and both parents at work, childcare options are taken into consideration when it comes to financial planning.
The cost of childcare becomes a prevailing concern and some key questions remain: Who is the best person I can trust to care for my child? Would it be a family member? Should we engage a Foreign Domestic Worker? How about sending baby to the infant care/child care?
If one parent decides to be a stay-home parent (be it dad or mum), the household contribution is halved instantly. In this case, is there a way for a family to manage expenses, with the idea that they are saving by opting out of external childcare options?
The costs of raising a child in Singapore
How much do we really need to raise a child in Singapore? How exorbitant a sum has it become that has stopped couples in their tracks when it comes to family planning or thinking of having more kids?
Some expert analysts have calculated that it takes anywhere from $100,000 – $500,000 until your child turns 21. Recently, the magic number sits at around $340,000 for the same period.
Now, when you place that sum in front of any hopeful parent, it is sure to be greeted with gasps – unless you were born with a silver spoon or have a bank account that would make the majority envious.
Do you really know what the key cost contributors in these numbers are? Better yet, how do you maximize the Baby Bonus scheme and leverage your child’s Child Development Account (CDA) baby bonus to use it effectively?
What exactly are the top 3 areas that contribute to the cost of bringing up a child in Singapore? Find out on the next page.