Singapore announces $55,000 child support

Raising a child is becoming more expensive in many parts of the world making family life a growing financial challenge for parents.

Singapore has announced a new financial support package that could provide more than $55,000 to parents for each child from birth until the child turns 17. Prime Minister Lawrence Wong announced the plan as part of efforts to encourage more people to have children and address Singapore’s falling birth rate.

The government already provides financial support to families but Wong said the current system can be difficult for parents to understand.

Under the new plan financial support will be made simpler and available to every Singaporean child.

The support will be provided in five stages.

At birth Parents will receive about $7,880 during the first 12 months.

Over 16 years

More financial support will be provided through regular yearly payments.

Child development account

The government will add money to the child’s account.

At age 16

Another payment will be added to the Child Development Account.

At age 17

Additional support will be provided to help with future higher education costs. Together the payments are expected to total more than $55,000 for each eligible child.

Singapore’s birth rate has fallen to a record low of around 0.87 births per woman far below the global replacement level of about 2.1.  The government hopes the new support will make raising children easier and encourage more families to have children.