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  • Financial Fortress

What Does It Cost to Raise a Child in Singapore?

Updated: Jun 2, 2022


child and parent hands holding money jar

It goes without saying how expensive it is to raise a child in Singapore, or almost any part of the world. You have to be financially stable first before even the thought of starting a family crosses your mind.


There may be several government subsidies for parents in Singapore, but raising a child still means spending a significant amount of money on education, food, clothes, and everything else they need while growing up.


In fact, according to NUS economists, parents need at least $280,000 to $560,000 to raise a child in Singapore, which is by no means a small amount of money! To have this much money, you have to do more than just save a portion of your monthly salary.


Anyway, if you have plans to start a family in the near future, we’ve written an article for you! Read on below to discover the possible expenses of having a child in Singapore.


 

1. Pregnancy and Healthcare


Pregnant young woman with piggy bank in child care cost theme

Obviously, spending money on a child starts as soon as you know you're pregnant! Doctor consultations, maternity classes, and pregnancy supplements are just some of the things you have to add to your budget.


On average, prenatal care can cost up to $3,000, which includes vitamins, ultrasound, and various blood tests.


When it comes to childbirth, expect to shell out somewhere between $1,500 to $8,000 for normal deliveries while up to $13,000 for C-section births. Even if you have MediShield or private insurance, giving birth in Singapore will cost an arm and a leg.


Another thing you have to consider is healthcare for your child. It’s the parent’s responsibility to pay for their insurance premiums and any out of pocket medical costs.


Luckily, health insurance for children usually comes cheap. Plus, new parents are given a MediSave grant for MedShield premiums, which can be used for outpatient visits and vaccinations.


Here’s a list of things where your money will likely go to while during pregnancy:

pregnancy and healthcare table costs

2. Education


coins money on table for concept investment fund finance and scholarships and education

There’s no question that education in Singapore can get expensive, which makes education planning and starting an education fund all the more important.


Right off the bat, early childhood programmes can cost quite a bit, ranging from $20,000 to $25,000 annually, depending on your child’s age.


On top of that, the costs of enrichment classes alone can go up to $2,000 per year. Although these aren’t mandatory, it’s crucial if you want your child to be academically competent and increase their chances to get into good universities.


University is what’s going to test your financial planning skills and determine if you have a sufficient children’s education fund. An average 4-year arts and sciences degree in Singapore can cost $19,000 annually.


All in all, parents are expected to shell out more or less a quarter of a million dollars for the entire education of their children.


Here’s a closer look at education expenses in Singapore:

Education costs table

3. Travel Costs


Miniature people_ Two backpacker standing on rows of stack coins using as background Money, Financial

Going on vacations with your child can be a great family bonding experience. However, it doesn’t come without costs.


Adding another person to the travel itinerary means more money for airfare, accommodations, and food, among others. On average, a Singaporean household spends around $700/person on travel annually, which equates to more or less $2,100 if you’re a family of three.


As expected, airfare costs will make you pay through the nose while travelling. On the flip side, the majority of airlines allow babies to travel for free, up to a certain age, so you might want to travel as much while your child is still within the age range.


Here’s the average cost of travelling to different regions around the world as a Singaporean family:

Travel costs table

4. Housing Costs


House figurine on a calculator

If you’re single or married without kids, living in a small condo or apartment would be more than enough. However, once you have a child, you’ll need to move to a larger flat that can accommodate a growing family comfortably.


It’s one of the things you have to prepare for as an adult given how residential properties in Singapore can get expensive. For instance, 4-room flats are commonly 50% more expensive than flats with one less room.


To give you perspective, the price gap between these properties can set you back at least $150,000, so that’s a lot of money for a single additional room.


Staying in your current home can be an option, too, but you’ll have to spend some money on furnishing your child’s nursery or room.


How much you’re going to spend on furnishing pieces and room decorations depends on you. You have free reign while designing your child’s room, so sticking to your budget is relatively easier.

Housing costs table

5. Food and Clothing


Baby clothes and necessities on light background

Children come with all sorts of miscellaneous expenses. As a parent, raising a child means providing them with everything that you provide for yourself, down to the smallest things.


The cost of adding another person to the family could mean spending as much as $5,000 annually on food alone over the next 18 years.


Another thing you have to consider is clothing. It’s hard to determine how much you’re likely going to spend on clothing as we all have different lifestyles.


However, it’s worth noting that clothing still needs to be factored into your budget when you have a family. The overall cost of clothing for a child won’t likely make a dent in your paycheck, but it’s the small expenses that we sometimes have to pay more attention to.



Planning for your child’s future


Happy Asian family using tablet, laptop for playing game watching movies, relaxing at home

Starting a family in Singapore lends itself to indirect costs, from attending maternity classes to purchasing baby-friendly food, and even enrolling them in enrichment classes. In sum, the list of expenses is basically endless.


There’s no way around the expenses of having a family other than making and managing your finances wisely.


If you need more tips in managing your money as a parent, or simply want more advice on financial planning and educational planning, send us a message! We can connect you with experienced financial advisors who can help you achieve your financial goals.

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