Bringing your pride and joy into this world is one of the most significant events in any parent’s life!
Understandably, this major milestone comes with new responsibilities and expenses. From daily needs such as diapers and food to long-term expenses such as education, managing your finances as a parent may seem challenging.
Fret not —these schemes and benefits can help to ease your transition to parenthood.
Manage child-raising costs with the Baby Bonus Cash Gift
Under the Baby Bonus Scheme, you’ll receive $8,000 in cash for your first and second child, and $10,000 for your third and subsequent children. This can be used to defray any child-raising costs to help lighten the financial outlay.
To be eligible for the Baby Bonus Scheme, parents have to be lawfully married and the child has to be a Singapore Citizen.
Ease healthcare and education costs with the Child Development Account (CDA) First Step grant
Upon joining the Baby Bonus Scheme, the Child Development Account (CDA), a special savings account, will be created for your child. To help you get a head start, your child will receive a First Step grant of $3,000!
Double the savings you deposit into your child’s CDA with Dollar-for-Dollar matching
You can grow your child’s CDA savings even more by leveraging the Dollar-for-Dollar matching benefit. For every dollar you deposit into the account, the government will match it, up to $3,000 for your first and second child, up to $9,000 for your third and fourth child and up to $15,000 for your fifth and subsequent children.
The CDA savings can be used for childcare or healthcare expenses at Approved Institutions registered with the Ministry of Social and Family Development. This includes childcare centres, kindergartens, optical shops, clinics and more.
The account can be kept open until your child is 12 years old, so use the time to leverage the dollar-for-dollar matching! Should there be unused funds in the CDA after your child turns 13, they will be transferred to his or her Post-Secondary Education Account (PSEA), and subsequently, to his or her CPF Ordinary Account at age 30.
Take care of healthcare costs with the MediSave Grant for Newborns
After registering your newborn’s birth, $4,000 will be credited into a MediSave Account created for him or her.
This can be used to pay for MediShield Life premiums, recommended childhood vaccinations on the National Childhood Immunisation Programme, hospitalisation and applicable outpatient treatments.
To be eligible for the MediSave Grant, the child has to be a Singapore Citizen.
Transition into parenthood with a better peace of mind
Having a new addition to the family is a major milestone in a parent’s life, which is why it’s more important than ever to plan ahead and equip yourself with financial knowledge and the various child-related grants available.
In addition to financial support, the government provides a range of other support measures for Singaporeans at every stage of their parenthood journey. Visit www.heybaby.sg for more information!
Baby on the way? Here are some articles to help you be prepared!
The Ultimate Guide: Baby Bonus in Singapore
Guide to using the MediSave Maternity Package
Raising kids to be money smart
Information accurate as at 11/2/2020