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For families, budgeting is a fundamental part of managing household finances. A well-thought-out budget not only provides clarity on available resources, but also serves as a guide to prioritising expenses.
Certain expenses, like housing, food, and utilities are common across households. These are essential spending that every family would account for. However, other expenses could vary significantly across households depending on the stage of life or circumstances their members are in.
For instance, families with young children may prioritise and spend more on education-related needs such as childcare, while families with seniors may focus more on their healthcare needs.
In many ways, managing a national budget mirrors the challenges of managing a family budget—albeit on a much larger and more complex scale. Just as families must make thoughtful decisions about resource allocation, governments must carefully consider how to distribute public funds to address the diverse needs of their citizens.
In Singapore, government support includes a mix of broad-based and targeted schemes for Singaporeans. For instance, the CDC Vouchers scheme is broad-based in nature and all Singaporean households would be eligible for CDC Vouchers. Other schemes like the Budget 2024 Cost-of-Living Special Payment are means-tested to provide more support for lower- and middle-income Singaporeans. The schemes offer financial relief, and can help Singaporeans cope with cost-of-living concerns.
Addressing The Specific Needs Of Young Families In Singapore
Young families form an essential group in Singapore’s society.
At this stage of life, young families typically face increased financial demands and responsibilities, making support especially critical, particularly for those in the lower- and middle-income groups. Thus, it is important for this group to receive additional support from the budget, on top of other schemes that are available to all.
To understand how the Government supports families, we focus on three key areas of support announced earlier this year at the Singapore Budget 2024. This is on top of other ongoing support measures that help Singaporeans.
Read Also: Singapore Budget 2024: 24 Things That Will Impact Singaporeans Financially
#1 Reduction In Monthly Childcare Fee Caps To Support Parents
For parents with young children, childcare is often a top priority.
In Singapore, the Anchor Operator (AOP) and Partner Operator (POP) schemes play a crucial role in keeping childcare fees affordable while ensuring access to quality preschool programmes for families with young children. To support childcare operators in their continuous provision of high-quality education within a regulated fee structure, the government provides funding to selected preschool operators.
Currently, the monthly fee cap for full-day childcare expenses at an AOP centre is $680 while that of a POP centre is capped at $720.
As announced in the Singapore Budget 2024, these fee caps will be reduced in 2025, with the revised monthly fee cap for AOP centre lowered to $640 and that of a POP centre lowered to $680. This means that the childcare centres will not be able to charge fees exceeding these fee caps, and when coupled with means-tested subsidies, eligible families will enjoy savings for their children’s overall childcare expenses.
This reduces the financial burden on families, but it does not compromise the quality of education provided. Instead, the Government will be increasing its funding to these subsidised childcare programs, ensuring that young Singapore families continue to benefit from high-quality preschool education.
#2 Parenthood Provisional Housing Scheme (Open Market) Voucher For Families Who May Need Temporary Housing
Some families may need temporary housing while waiting for the completion of their HDB flats. HDB provides subsidised rental housing under the Parenthood Provisional Housing Scheme (PPHS), and is ramping up the supply of PPHS flats to meet demand.
In the meantime, the Government will provide a PPHS (Open Market) voucher worth $300 per month to support eligible families who need to rent HDB flats or bedrooms on the open market. This helps to offset their rental costs while they wait for their HDB flats to be ready.
#3 ComLink+ Progress Packages To Support Lower-Income Families
The ComLink+ Progress Package was introduced in the 2024 Singapore Budget to support lower-income young families. The initiative aims to help these families achieve stability, self-reliance, and upward social mobility.
The ComLink+ Progress Package takes a holistic approach, addressing four key areas where lower-income families may require additional support.
Supporting Preschool Education: As part of the initiative, each child enrolled in preschool will receive a one-off $500 top-up to their Child Development Account (CDA). Additionally, children aged three to six will receive a $200 top-up to their CDA every three months, provided they maintain regular preschool attendance.
Encouraging Stable Employment: Individuals can receive financial incentives for working in jobs that pay CPF contributions with a gross salary of at least $1,400 per month. Eligible adults will receive financial top-ups of $450 to $550 every three consecutive months of employment, with the payouts distributed as a combination of cash and CPF contributions. The support increases if both adults in the same household meet the criteria. In such cases, each will receive an additional $50 per quarter. The scheme allows a maximum of two beneficiaries per household.
Support Package For Financial Stability: To support lower-income families in managing and clearing their debts, the government has introduced a scheme that provides a dollar-for-dollar match of up to $5,000 for repayments made towards verifiable debts.
Verifiable debts are defined as those owed to licensed entities, such as utilities companies or housing arrears, where the amounts owed can be tracked and repayments documented. However, the scheme does not cover debts owed to unlicensed moneylenders or informal loans from friends and family.
Saving For Home Ownership: For every $1 a family contributes to their CPF Ordinary Account, the government will match it with $2. This initiative aims to help families save more quickly for their flat purchase and encourage them to achieve home ownership.
Under the combined “Saving for Home Ownership” and “Employment” packages, families can receive total payouts of up to $30,000. These top-ups will continue as long as the family remains eligible or until the payout limit is reached, whichever comes first.
Families Are Also Supported Beyond These Measures
Beyond the three specific areas that we have highlighted above, young families in Singapore also benefit from a range of broader support schemes available to all citizens. These initiatives provide relief that eases financial burdens for households across the board and contributes to a more inclusive system of support.
For example, CDC Vouchers are distributed to all Singaporean households, so that they can better manage their daily expenses such as groceries and dining. Similarly, eligible HDB households benefit from U-Save and S&CC rebates.
In addition, eligible adult Singaporeans would have received the Budget 2024 Cost-of-Living Special Payment, a direct cash payout to help manage inflationary pressures and cost-of-living concerns. While these measures are not exclusive to young families, they provide meaningful relief that young families can leverage to manage current financial pressures.
Efforts to enhance programmes like Workfare and increase the Local Qualifying Salary also play a crucial role in supporting lower-income workers, many of whom are parents striving to provide for their young families. These initiatives create pathways for greater financial stability and upward mobility.
Together, the mix of both targeted and more broad-based support measures enable young families not only to cope with immediate challenges but also to build a stronger foundation for their future. By easing today’s financial pressures, young families are empowered to create a better, more secure future for themselves and their children.
Read Also: Your Majulah Package: A Young Singaporean Senior’s Roadmap To Their Retirement Benefits
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