In Singapore, people who have a baby are eligible for the Baby Bonus scheme. This is a government-sponsored programme that provides financial assistance to parents to help them with the costs of raising their children.
The sums you can get aren’t negligible, but the programme has its limitations.
Raising a child in Singapore is expensive and sometimes, parents need an extra hand for their financial difficulties.
You need to be prepared: this blog post will discuss the different amounts that parents can receive under the Baby Bonus Scheme and how you can counteract the downsides.
Keep reading below!
The Baby Bonus Scheme is a government grant for parents. This program has two components: Baby Bonus Cash Gift and a Child Development Account.
We’ll discuss these in the following sections:
You will get this cash gift from the government when you have a baby. The amount that you will receive is:
The eligibility conditions to get this baby bonus include:
As you can see, the requirements are relatively basic so that you can easily apply.
However, you won’t get all your money at once. That can be an advantage because you will have more installments as your baby grows and adapts. To get quick cash for your children’s education, you can apply here.
New parents especially don’t really know what to expect after their baby comes. As such, they may be tempted to invest in too many baby clothes, toys, or furniture that their baby dislikes.
Here’s how the bonus is split:
For the third and subsequent children, the bonus is split like this:
The Child Development Account (CDA) is a savings account for your baby.
You can use this money to pay for your child’s educational and healthcare expenses when they are older.
The government will match the money that you save, up to a certain amount. For every dollar that you save, the government will give you another one.
To get started, you need to open a CDA account at one of these banks:
Bonus: Eligible children receive a $3,000 CDA First Step Grant without any savings.
You’ll get this bonus deposited into your baby’s CDA account.
Government co-matching of parents’ savings
Singapore’s government matches the savings that parents make into their child’s development account (CDA), up to a certain amount. For every dollar you save, the government will give you another one.
There’s a catch though, the government’s amount depends on how many children you have.
You can make deposits into this CDA account for your children until December 31st, the year they become 12.
There is a downside to this program though. You can only use this money for some education in approved centres and medical expenses. That’s a significant inconvenience because children need much more than that.
The government’s list includes the following approved spending:
The complete list of organisations that allow CDA savings are on the government’s website, which you can access here. For education centres that are not included in the list, parents can consider taking a private loan for the expenses.
The money doesn’t disappear from your account – that’s the good news. Instead, it gets automatically transferred to your children’s Post-Secondary Education Account.
This account allows you to:
If you haven’t reached the cap for this account with the CDA leftover money, you can continue making deposits. The government will give you the matching amount when:
The Baby Bonus Scheme is a genuine help for people planning to grow a family.
The programme helps with the financial costs of having a baby and encourages parents to save for their child’s future.
However, the Scheme has limitations.
You can only use the CDA savings for your kids’ healthcare and education at approved institutions. But your children also need furniture, clothes, entertainment and different forms of healthcare.
Find out more about us and apply via Singpass here.