Skip to content

SG Budget 2025: How Much Will Parents Save on Their Kids (Monthly) with More Support Given

Picture of The Financial Coconut
Follow The Financial Coconut

 

With the unveiling of SG Budget 2025, Singaporean parents can look forward to significant financial relief as the government introduces a range of new and enhanced subsidies, incentives, and support measures for families with children.

From reduced childcare fees to child-specific credits and top-ups, Budget 2025 aims to ease the burden of daily and major living expenses. But how much can parents actually save each month?

This article breaks down the estimated monthly savings for different family segments, showing the impact of these measures on out-of-pocket costs for raising kids in Singapore.

How Much are Singapore Families with Children Spending per Month?

Raising kids in Singapore can be pricey. Monthly costs vary based on lifestyle, location, and education choices. Here are some typical expenses:

Expense Category Monthly Amount (SGD) Description
Infant Care and Childcare SGD 800 to SGD 2,000 Depending on subsidies and type of care per child.
Education and Enrichment SGD 300 to SGD 1,500 Includes tuition, music, sports, and other developmental classes.
Healthcare SGD 100 to SGD 300 Average costs for insurance, vaccinations, and occasional medical visits.
Daily Living Costs SGD 200 to SGD 600 Covers food, clothing, and other essentials per child.
Extracurricular Activities & Hobbies SGD 100 to SGD 300 For older children involved in sports, arts, or other pursuits per month.
  • On average, families spend SGD 1,500 to SGD 4,000 a month on a child. For families with three or more children, this can rise to SGD 4,500 to SGD 12,000 per month. This puts a lot of pressure on family finances.

Key Highlights of Families with Children Scheme - Newly Announced SG Budget 2025

Incentive/Support/ Subsidy Description Details

Large Families Scheme

New financial support for married couples with three or more children.
  • For each third and subsequent Singaporean child born on or after February 18, 2025: S$5,000 increase in CDA First Step Grant, S$5,000 Large MediSave Grant for mothers, S$1,000 Large Family LifeSG Credits per year (ages 1-6) for groceries, utilities, etc.
  • Existing large families (child aged 6 or below, born Jan 1, 2019–Feb 17, 2025) get S$1,000 annually until child turns 6. Credits disbursed from Sep 2025 (existing) or Apr 2026 (new).

Child LifeSG Credits

 One-off financial support for Singaporean children.
  • Each Singaporean child aged 0 to 12 in 2025 receives S$500 in Child LifeSG Credits.
  • About 455,000 children benefit, disbursed in Jul 2025; children born in 2025 get credits in Apr 2026.
  • Credits can be used for groceries, utilities, and transport.
Edusave and Post-Secondary Education Account Top-Ups Financial support for educational expenses of older children and youths.
  • Each Singaporean child aged 13 to 16 in 2025 gets a S$500 top-up to their Edusave Account.
  • Each Singaporean child aged 17 to 20 in 2025 gets a S$500 top-up to their Post-Secondary Education Account.
  • Top-ups benefit about 300,000 students, disbursed in Jul 2025, for education-related expenses.
Reduced Childcare Fee Caps Lowered fees at government-supported preschools to make childcare more affordable.
  • Monthly childcare fees at anchor operator preschools capped at S$610 (down from S$640) in 2025.
  • Monthly fees at partner operator preschools capped at S$650 (down from S$680) in 2025.
  • Dual-income families pay ~S$300 per child after subsidies; lower/middle-income families pay less. Further reductions planned for 2026.
Enhanced Preschool Subsidies for Lower-Income Families Extended subsidies to make preschool more accessible for lower-income families.
  • Higher preschool subsidies now extend to all children from lower-income families, including those with non-working mothers (previously only for children with working mothers).
  • Lower-income families pay as little as S$3 per month for full-day childcare at anchor operator preschools.
SG60 Baby Gift A celebratory initiative for babies born in 2025.
  • All Singaporean babies born in 2025 will receive an SG60 Baby Gift.
  • Specific details to be announced at the Prime Minister’s Office Committee of Supply debate.

Why This Is Significant

1. Addressing the Real Costs of Larger Families

Raising three or more children in Singapore is very expensive. Costs include education, healthcare, daily living, and enrichment activities. The government has introduced the Large Families Scheme to help with these costs.

2. Fertility Crisis: A National Concern

Singapore’s total fertility rate (TFR) hit an all-time low of 0.97 in 2023. A TFR of 2.1 is needed for population replacement.

This low rate is concerning because it could harm the economy and increase social welfare costs.

3. Modernising Family Incentives

The introduction of LifeSG Credits shows a move towards digitally-enabled, flexible financial support.

Parents can use the credits at many places, from supermarkets to childcare centers. This is more convenient than old vouchers or grants.

Universal vs. Tailored Approach

While universal support is important, Budget 2025 sees the biggest barrier as financial strain. By tailoring support to third and subsequent children, the government shows it understands the need for more support as families grow.

Singapore households' finances: Still healthy, but with a chance of cost-of-living pressure | The Straits Times

Before and After SG Budget 2025 Savings by Family Segment

Estimated Savings by Family Segment

1. Single-Child Family (e.g., HDB 3-room flat, 1 child aged 6, dual-income)

  • Before Budget 2025: 
    • Daily Expenses: S$1,250/month
      • Groceries (S$700/month)
      • Utilities (S$250/month)
      • Transport (S$300/month) 
    • Childcare/Education (child aged 6, no active preschool but school costs):
      • S$400/year for school-related costs (annualized to S$33/month).
    • Major Expenses: S$417/month
      • Healthcare (S$200/year, annualized to S$17/month),
      • Housing (S$400/month mortgage)
    • Total Monthly: S$1,250 + S$33 + S$417 = S$1,700.
  • After Budget 2025:
    • Child LifeSG Credits:
      • S$500 for the 6-year-old (one-time, usable for groceries, utilities, transport).
      • Annualized: S$500/12 ≈ S$42/month.
    • Reduced Childcare Fees:
      • Not applicable for a 6-year-old (past preschool age), but school costs remain.
      • No significant change here, but Edusave Top-Up applies.
    • Edusave Top-Up:
      • S$500 for the 6-year-old (one-time).
      • Annualized: S$500/12 ≈ S$42/month.
    • CDC Vouchers:
      • S$800 (split for supermarkets/merchants, reduces grocery/transport).
      • Annualized: S$800/12 ≈ S$67/month.
    • U-Save Rebates:
      • Up to S$760 for 3-room HDB flats (covers ~6 months of utilities).
      • Annualized: S$760/6 ≈ S$127/month.
    • Total Monthly Savings:
      • Groceries/Transport (CDC): S$67/month.
      • Utilities (U-Save): S$127/month.
      • One-time Credits (Child LifeSG + Edusave): S$84/month (S$42 + S$42).
    • Net Monthly After: S$1,700 - (S$67 + S$127 + S$84) = S$1,422/month.

2. Low-Income Family (e.g., HDB 2-room flat, 2 children aged 5 and 8, non-working mother)

  • Before: S$1,790/month (as before).
  • After: S$834/month (as before).
  • Savings: S$956/month.

3. Middle-Income Family (e.g., HDB 4-room flat, 3 children aged 4, 10, and 15, dual-income) –

  • Before: S$3,340/month (as before).
  • After: S$2,181/month (as before).
  • Savings: S$1,159/month.

4. High-Income Family (e.g., private housing, 4 children aged 2, 6, 14, and 18, high earners)

  • Before: S$5,480/month (as before).
  • After: S$ 2,950/month (as before).
  • Savings: S$ 2,530/month.

Summary of Singapore Family Savings (in SGD) by Number of Children per Household

Family Segment Before Budget 2025 (Monthly Expenses in SGD) After Budget 2025 (Monthly Expenses in, SGD) Monthly Savings (SGD) Annual Savings (SGD)

Single-Child (1 child)

 1,700 1,422 278 3,336

Low-Income (2 children)

 1,790 834 956 11,472

Middle-Income (3 children)

 3,340 2,181 1,159 13,908

High-Income (4 children)

 5,480 2,950 2,530 30,360

Notes

  • The single-child family benefits less than larger families because they don’t qualify for the Large Families Scheme or SG60 Baby Gift (if applicable). Their savings come mainly from Child LifeSG Credits, Edusave top-ups, CDC vouchers, and U-Save rebates.
  • All figures are estimates based on web data, typical Singaporean expenses, and Budget 2025 measures. Actual savings depend on specific circumstances, housing type, and eligibility.
  • One-time benefits (e.g., credits, vouchers) are annualized over 12 months for consistency.
  • The SG60 Baby Gift is excluded due to pending details, but it would apply to newborns, not older children like in this example.

Disclaimer

The savings estimates in the table are illustrative only, based on SG Budget 2025 data and typical assumptions as of February 19, 2025.

They are not guaranteed and may not reflect your actual situation, as savings depend on individual circumstances, eligibility, and other factors.

This information is not financial advice. Consult a financial adviser or relevant authorities for personalized guidance.

Real-Life Impact: Will This Move the Needle?

The Hope

For couples thinking about a third child, the Large Families Scheme could be the final nudge they need. Families with young children will also appreciate the retroactive support, easing ongoing expenses.

The Doubt

But, cash support alone might not fully overcome deeper issues like:

  • Work-Life Balance: Parents often struggle to balance work and raising multiple children.
  • Housing Costs: Larger families need bigger homes, which can be very expensive.
  • Career Progression Fears: Mothers, in particular, worry about the impact of having more children on their careers.

 

SG Budget 2025 offers substantial financial support for Singaporean parents, with monthly savings ranging from S$278 for a single-child family to over S$2,530 for larger high-income households, depending on family size and income level.

While these estimates highlight the potential relief, actual savings will vary, so parents are encouraged to check their eligibility and consult official sources or financial advisers.

With these measures, Budget 2025 not only eases the cost of raising children but also reinforces the government’s commitment to supporting families in Singapore.

Budget 2025’s Large Families Scheme marks a significant evolution in Singapore’s family support. With child-raising costs remaining high, this support can ease the financial load.

Yet, systemic issues like housing and work-life balance still need attention. For parents considering a third child or more, 2025 might just be the year to take that leap.

You can now be our community contributor and make a pitch to have your favourite personality be on our show.
Join our community group and drop us your insights on this topic.

 

Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut
,

Let us know what you think of this post