I’m a first-time parent and here’s how I’m using government support to reduce my out-of-pocket expenses

Pre-baby, I seldom paid attention to the inflation rate. My daily kopi peng increasing by ten cents? That is not a significant sum for someone from a DINK (dual income, no kids) household.

Things have changed since welcoming my little bundle of joy.

These days, with diapers, childcare and formula - the costs quickly add up.

Thankfully, help is available, even for middle-income households. Here's how young parents - like myself - can benefit from the new support measures announced at Budget 2024.

Help with living expenses

I did the math using the Support For You Calculator, and it looks like my family will be receiving more than $2,000 in cash and benefits in total from Budget 2024 for our living expenses.

All Singaporean households will receive $600 in CDC vouchers - $300 disbursed in end-June 2024, and another $300 disbursed in January 2025.

I typically use my CDC vouchers for groceries and for meals at the hawker centre, so this additional $600 will go some way towards alleviating my daily expenses.

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And since I live in an HDB flat, my household is eligible for both U-Save and Service and Conservancy Charges (S&CC) rebates.

These rebates will offset some of my household bills - namely the utilities and monthly S&CC.

On the personal front, my husband and I are looking forward to the Cost-of-Living Special Payment, which is a cash payment between $200 and $400 for eligible Singaporeans.

He will also be getting an additional $200 in NS LifeSG credits, disbursed to all past and present national servicemen. The credits can be spent at over 100,000 online or physical merchants accepting payments via PayNow UEN QR or NETS QR.

And finally, we will each receive a one-time MediSave Bonus, which can go towards our medical bills and insurance premiums. This bonus of up to $300 per person is available to all adult Singaporeans aged 21 to 50.

Lowered preschool fees

Come 2025, the fee caps for full-day childcare in government-supported preschools will be lowered.

As I will be enrolling my child in a Playgroup soon, this news couldn't have come at a better time. If I choose to enrol him in an anchor operator preschool, the lowered monthly fees will be capped at $640 (excluding GST).

Coupled with the basic subsidy of $300 for working mothers like me, my childcare expenses will be kept well within my budget.

These fee caps will be further reduced in 2026, which is rather reassuring - especially if my partner and I welcome a second child in the coming years.

For lower-income families with non-working mothers, help will come in the form of increased childcare subsidies.

Additional tax rebate and reliefs

I will also be paying less taxes this year, thanks to the 50 per cent Personal Income Tax Rebate for the Assessment Year 2024, which is capped at $200.

The annual income threshold for dependant-related tax reliefs will also be raised from $4,000 to $8,000 in Assessment Year 2025, providing additional support to taxpayers who are also caregivers.

Other support measures for families

While the following support measures are not applicable to me, they are worth noting for families who need more aid.

Firstly, eligible families waiting for their BTO flats will receive assistance in the form of a one-year Parenthood Provisional Housing Scheme (Open Market) Voucher. This helps to offset the cost of renting an HDB flat in the open market.

Secondly, eligible lower-income families who are working to better their situations will be able to tap into the Comlink+ Progress Packages.

For instance, adults in the family will get supplementary assistance upon securing a job and staying in it for at least three months. Those who make voluntary contributions to their CPF will also receive matching government grants to grow their savings.

This, combined with existing schemes like the Fresh Start Housing Scheme, will help lower-income families to eventually buy their own homes.

Moving forward with confidence

While I am concerned about rising costs, especially as a parent, the recently announced support measures provided some relief and assurance. And after crunching the numbers and considering the benefits from Budget 2024, I realised that my current lifestyle is still quite manageable.

But maybe I'll start making my own kopi peng at home instead.

To check the estimated benefits that you and your household may be eligible for, visit go.gov.sg/supportforyoucalculator.

This article is brought to you in partnership with Ministry of Finance.

sophie.hong@asiaone.com

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