Government does not publish child-raising cost estimates; Baby Bonus based on household data

In a written reply to parliamentary questions on 4 February 2026, Minister in the Prime Minister’s Office Indranee Rajah clarified that the Government does not publish official estimates of child-raising expenditure in Singapore, unlike countries such as the United States.

The response was given on behalf of the Prime Minister to Workers’ Party MP Kenneth Tiong (Aljunied GRC), who had asked whether such estimates were available, what data is used to determine Baby Bonus amounts, and whether the scheme’s payout structure aligns with peak expenses in a child’s early years.

“Such standalone estimates would not be useful as child-raising expenditure varies greatly depending on a family’s needs, parents’ expectations and choices,” said Minister Indranee.

How Baby Bonus decisions are made

Instead of releasing a fixed benchmark, the Government uses a combination of household income and expenditure data, including child-related spending, as well as direct feedback from parents, to determine the Baby Bonus quantum and payout timeline.

Citing the 2023 enhancements to the scheme, Indranee — who is also Second Minister for Finance and Second Minister for National Development — noted that the adjustments were made in response to public feedback to ensure continued support until a child enters primary school.

More support in the first 3 years

Minister Indranee also addressed whether the Baby Bonus structure matches early-stage expenses, especially for lower-income families.

She explained that a larger portion of the Baby Bonus Cash Gift is paid out in the initial period after birth, recognising the higher costs during infancy. Regular payouts continue until the child turns 6.5 years old.

Additional financial support in the first 36 months includes:

• The Child Development Account (CDA) First Step Grant, disbursed at birth

• Dollar-for-dollar government co-matching of parental deposits in the CDA

• CDA funds can be used for approved expenses such as infant care, preschool, and medical fees

Broader affordability efforts

Minister Indranee reiterated that the Government has worked to keep preschool and infant care affordable by enhancing subsidies and reducing fee caps.

All Singapore Citizen children in licensed preschools are eligible for:

• A Basic Subsidy of up to $300/month for childcare or $600/month for infant care

• Additional subsidies for lower- to middle-income families (income ceiling raised from $7,500 to $12,000 in 2020)

Fee caps at Anchor Operator (AOP) and Partner Operator (POP) preschools have also been progressively lowered, including reductions for full-day infant and childcare in 2023, 2024, and 2025.

Targeted support schemes such as the Child Care Financial Assistance Scheme and the Start-Up Grant further assist lower-income households with young children.

“We will continue to review our measures to strengthen support for parents in managing the costs of raising children,” Minister Indranee said.

Fertility in Focus Amid Rising Costs

The parliamentary question from Tiong comes as Singapore grapples with long-term demographic challenges.

The country's resident Total Fertility Rate (TFR) hit a historic low of 0.97 in 2023 and remained unchanged in 2024—well below the replacement rate of 2.1. In response, the Government has declared the issue a national priority.

While financial support schemes like the Baby Bonus have been expanded, recent efforts have also focused on structural incentives, such as the Shared Parental Leave scheme (set to increase paid leave by 2026) and the Large Families Scheme, which offers targeted grants for families with three or more children.

Child-Raising Cost Comparisons: Singapore and Abroad

While Singapore does not publish official child-raising cost estimates, the United States has tracked such data since 1960 through its Department of Agriculture (USDA). Its latest full report, Expenditures on Children by Families (2015), analyses spending by age of child, household income, budget category and region.

Using Consumer Expenditure Survey data, the USDA estimated that a middle‑income, two‑child married household spent about US$12,980 per child annually in 2015.

Parents of a child born that year were projected to spend US$233,610 to raise the child to age 17, excluding university costs. When inflation is factored in, the figure rises to about US$284,570 in 2025.

Housing accounted for the largest share of expenses at 29%, followed by food (18%) and childcare or education (16%). Costs also increased as children grew older, with teenagers generating higher food and transport expenses.

The USDA found significant variation by income and geography. Families in urban areas—particularly the Northeast—spent the most, while rural households spent about 27% less, mainly due to lower housing and childcare costs.

The report also highlighted economies of scale: per‑child expenses were higher for one‑child households and lower for families with three or more children, as costs such as housing, food and clothing could be shared.

In the US, these figures are used by courts and state governments to guide child support and foster care payments, and by financial planners to help families budget.

The absence of comparable benchmarks in Singapore means parents here have fewer reference points when assessing long‑term child‑raising costs alongside schemes such as the Baby Bonus and preschool subsidies.