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. |
| Incentive/Support/ Subsidy | Description | Details |
|---|---|---|
|
Large Families Scheme |
New financial support for married couples with three or more children. |
|
|
Child LifeSG Credits |
One-off financial support for Singaporean children. |
|
| Edusave and Post-Secondary Education Account Top-Ups | Financial support for educational expenses of older children and youths. |
|
| Reduced Childcare Fee Caps | Lowered fees at government-supported preschools to make childcare more affordable. |
|
| Enhanced Preschool Subsidies for Lower-Income Families | Extended subsidies to make preschool more accessible for lower-income families. |
|
| SG60 Baby Gift | A celebratory initiative for babies born in 2025. |
|
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.
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.
Estimated Savings by Family Segment
1. Single-Child Family (e.g., HDB 3-room flat, 1 child aged 6, dual-income)
2. Low-Income Family (e.g., HDB 2-room flat, 2 children aged 5 and 8, non-working mother)
3. Middle-Income Family (e.g., HDB 4-room flat, 3 children aged 4, 10, and 15, dual-income) –
4. High-Income Family (e.g., private housing, 4 children aged 2, 6, 14, and 18, high earners)
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
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.
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:
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.
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