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In-Depth Guide: Breakdown Costs or Raising a Child in Singapore

In-Depth Guide: Breakdown Costs or Raising a Child in Singapore

Last Updated on May 31, 2022 by Parentology

Having a child is both amazing and intimidating, especially when you are living in Singapore. As one of the most expensive places to live, it is not easy being young parents here. You will need to strike a balance between parenting and making a living. Thankfully, this is not an impossible task and by budgeting wisely, you will be able to provide a good life for your little one.

One of the most challenging aspects of being new parents is managing your finances. After all, the cost of living is already high for a couple, let alone adding a new baby into the mix. So you need to be careful but with our help, we can make life a bit easier for you.


How Expensive is it to Raise a Child?

One of the first factors to consider when you are managing your finances is the cost of raising a child. Unlike making an investment on some property or even getting a car, there is a lot more that goes into raising a little human than just your money. When you are planning out how much you need to save or how much it actually costs to raise a child, this can be a bit tricky because every situation is different and there are a lot of hidden costs associated with children.

However, we can still estimate the average cost that you need to expect when raising a baby:


How Much Does it Actually Cost to Raise a Kid?

Pregnancy and Childbirth

$9000 – 13, 000

Infant Years

$29, 000 – $32,000
Toddler Years

$25, 000 – $28, 000

Primary School

$67,500 – $70, 000

Secondary School

$48, 000 – 51,000


$24,000 – $28, 000


$50, 000 – $65, 000


>$300, 000


The average cost of raising a child in Singapore is >$300, 000! Depending on your situation, this figure could be even more. This number includes everything from food to education and this not even including enrichment classes and tuition, which can add up another north of $90,000!


The Cost of Tuition and Enrichment Classes


Primary School


Secondary School





As you can see, it costs a fortune to raise a child in Singapore. You will want to make sure that you are able to budget your money wisely and find ways to save money. This means searching for the best deals on milk formula, baby food, and even diapers because this stuff adds up over time. There are many ways to find good deals and cheap prices but just make sure to compare different stores and online retailers, to ensure you are actually paying a good price.

It is also important to know that some things will be cheaper in different places. For example, it could be cheaper to buy diapers online or cheaper to get baby food at the mall. It pays to shop around and check out what is available to you. However, here is a table that can help point you in the right direction:


Online Shopping Retail


Usually slightly cheaper than retail Promotion prices cheaper than online shops
Baby Food Generally expensive on Qoo10

Prices competitive to online retailers



Price Varies: Cheapest when bought in bulk


On top of that, you will need to consider childcare. When you do not have a family member or a friend to watch your children at work, you are going to have to rely on childcare. So how much does it actually cost?


1 Year Old Onwards 0 – 4 Months 0 Onwards 2 Onwards
Options Ad Hoc Babysitter Confinement Lady Full Time Maid

Childcare Centres


Government Grants






Concessionary Rate: $60/month

Basic Subsidy:

Additional Subsidy:

Up to $440



Now that we got the cost of raising a child in Singapore out of the way. How can you start budgeting and planning your finances? Well, you have multiple options available to you such as taking advantage of the Baby Bonus, making a savings account for your child, using the CPF, and getting insurance.

These options will ensure that your finances will be in good order, so you can focus on being the best parent possible to your little one. Here are some pointers to get you started:


Taking Advantage of the Central Provident Fund

When most of us think of CPF, retirement comes to mind but it is always a good idea to give your little one a headstart by investing into them or getting an endowment plan for them. You can even add some cash to your child’s CPF account. Here are some ways for you to take advantage of CPF for your kid:

Maximise Child’s CDA

Lump Sum









Compound CDA Funds @ 2%


PSEA @ 2.5%


CPF OA @ 2.5%

Compound FRS from $181k to $1.5 million Take care of Healthcare Needs

Take care of education, housing needs


Getting a Savings Account for Your Child

As a child, chances are your parents gave you a savings account such as a POSB Kids Account. However, banks are now offering 1% to 2% interest rates, so a POSB Kids Account simply is not worth your time anymore. Why not take advantage of the better interest rates, especially when you are using the Baby Bonus program? Here is some info for you to consider when you are looking for a good Child Development Account or CDA:



Interest Rate

2% on all deposits 2% up to $36k, 0.05% thereafter 2% on all deposits
Junior Savings A/C 0.05% p.a on POSBKids a/c Up to 0.8% p.a on Mighty Savers a/c


Merchant Perks Yes Yes


Medical Expenses 3% Rebate for Passion POSB Debit Card No


The Baby Bonus

 The Baby Bonus is something that every new parent should be taking advantage of! In an attempt to increase the birth rates in Singapore, the government is giving cash incentives that range from $8,000 to $10,000, simply for having a child. If you combine these cash gifts with the payouts you are getting from your child development account, you can save up to $28,000.


The Lowdown on the Baby Bonus

Cash Gift

Child Development Account (CDA)


CDA (First Step Grant)


1st and 2nd Baby

$8,000 $8,000 Up to $3,000 Up to $14,000
3rd and 4th Baby $10,000 $10,000 Up to $9,000

Up to $22,000

5th Baby and More

$10,000 $10,000 Up to $15,000

Up to $28,000

Getting Your Kids Insurance

Insurance is something that every parent needs to get for their children. Kids love to mess around and who knows what sort of trouble they can get into when they are playing. They may get into fights, accidents, or even get sick. Having insurance will ensure you have a financial safety net for the unexpected and it may give you some peace of mind as well.

Getting good insurance can also save you quite a bit of money. Medical care is not cheap! So, make sure to check out the different insurance policies available and find something that will suit your budget and the lifestyle of your child. A good place to start is to top up the Hospitalisation plan with MediShield Life, Personal Accident, Life Insurance, and a Savings Plan.

It can be an adventure full of ups and downs when you have a child, especially when you are still learning the ropes. Thankfully, there is a lot of support out there to make your journey a bit easier. Just take your time, do your research, budget wisely, and be patient.


Get In Touch!

Should you be considering to plan, but not sure how, feel free to get in touch and our professional Financial Advisory advisory will help to compare, advice and provide you a non-obligatory neutral advice.

Just fill in the form below and our partnered advisor will get in touch shortly!



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