SINGAPORE: For many couples in Singapore, the decision to start a family is no longer just about timing; it’s also about finances. One woman, for example, says her husband’s monthly salary of S$4,500 simply isn’t enough to raise a child.
Her husband confirmed that she has been encouraging him to seek a higher-paying job, citing worries that they wouldn’t be able to manage life with a child in the city. Their discussions on the topic have even led to arguments.
Interestingly, the wife herself earns more than her husband, and together, their combined household income exceeds S$9,000 a month.
“We do have plans to have a kid in the future, [but] she feels that with our current income, we wouldn’t be able to afford a child,” he said.
“During the argument, I just told her that if she thinks we cannot afford it, I would rather not have one, since it wouldn’t be responsible for us to do so. I think she got slightly hurt by that since she does want to have a kid,” he said.
He added that he is hesitant to follow her advice because his current job offers a good work-life balance. He also has a supportive boss, flexible hours, and the ability to work from home, benefits he does not want to give up lightly.
“I’m not a very career-driven person and would rather spend time with family, doing things I like, or just rest mentally and physically because, from the very beginning, I wouldn’t want to be burnt out from working just to earn that extra cash. Not worth sacrificing my mental and physical health,” he explained.
Raising a child in Singapore
This dilemma is probably familiar to a lot of couples in Singapore right now. With the cost of living steadily climbing, from housing and childcare to everyday expenses, financial worries have become a constant backdrop to big life decisions.
According to a Dollar and Sense report, expenses for pregnancy and delivery alone can cost around S$12,000. In the first four years, parents are estimated to spend about S$94,800. During the kindergarten years (ages 5 to 6), that figure rises by another S$16,800. From primary school through junior college (ages 7 to 18), costs add up to approximately S$118,000, bringing the total to around S$237,600.
The report also pointed out that additional expenses, such as enrichment classes, gadgets, private medical care, and overseas trips, can easily push the overall cost even higher.
Grab the government perks
Thankfully, the government offers several perks that can help ease the parents’ burden.
According to the Central Provident Fund Board’s website, under the enhanced Baby Bonus Scheme, parents can receive cash gifts of S$11,000 for their first and second child, and S$13,000 for the third and any subsequent child.
The scheme also comes with a special savings account that can help ease the education and healthcare costs. This is called a Child Development Account, or CDA.
Every eligible child gets a First Step Grant of S$5,000 in their CDA. Families with three or more children get an extra S$5,000 under the Large Families Scheme.
In addition, when parents register their child’s birth, a Medisave account is opened automatically with S$5,000. It can be used for vaccinations, hospital stays, outpatient treatments, and MediShield Life premiums.
Working mothers can also get tax relief through the Working Mothers’ Child Relief scheme. It provides S$8,000 for the first child, S$10,000 for the second, and S$12,000 for the third and any additional children.
This applies to children born or adopted from January 1, 2024, onwards.
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