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Bonus and CDA: Everything New Parents Need to Know
By Mandy Lim Beitler, 07 March 2020 963
It’s not surprising that many young couples in Singapore today think really hard before they decide to start a family. There’s so much to consider on the costs alone.
For starters,
prenatal expenses alone can range from $800 to $1,500 for a basic package. Delivery packages start at about $1,000 for normal delivery, and can easily exceed $10,000, depending on the choice of hospital and what medical procedures are required.
Once your baby is born, you can expect to spend about $15,000 in the first year alone. This includes everyday needs from formula milk and diapers, to big ticket items such as baby cots and strollers. If you and your spouse also choose to be a dual-income household, then there’s
infant care programmes, nanny services and/or domestic helpers to consider.
As your child grows, other expenditures come into play, such as childcare and of course, education. And all this doesn’t even take into account potential paediatric medical bills or other rainy-day situations.
Thankfully, there are various government schemes available that can help to defray some costs such as the
MediSave Maternity Package and the Child Development Co-Savings Scheme, better known as the
Baby Bonus.
Baby Bonus 101
The Baby Bonus is designed to encourage couples to have more children and support their parenting journey by lightening their financial load. It comprises two major components:
1. Cash Gift
The Cash Gift is exactly that – money that you can use however you like, be it to pay for diapers or save up for the future.
For children born on or after 1 January 2015, you’ll receive a total of $8,000 each for the first and second child, and $10,000 each for the third and subsequent child. The Cash Gift is disbursed in five instalments over 18 months.