According to different indexes, Singapore is the most expensive city in the world. Married couples believe this that is why they delay pregnancy and having children. It is their prerogative but the government is giving cash gifts for expecting parents. The cash gifts can go a long way if we utilize it properly.
The Singapore government is encouraging married couples to have babies. All married couples know about the scheme where the government will match the amount saved in Child Development Account (CDA) for up to S$6,000. Remember that this will be the case for our first two children. It does not end there because for children who were born after August 26, 2012, they will receive S$6,000 worth of cash gift.
We can utilize this by simply transferring the cash gift to CDA. When the account is set up, parents can waive baby expenses through the bank’s Baby Bonus NETS Card. The savings should be used for the child’s development needs as long as it is registered and approved by the Ministry of Social and Family Development.
The cash gifts are really a blessing. Here are some ways we can utilize the cash gifts:
Child care fees: We can use the cash gifts as payment for child care centres, kindergartens and early intervention programmes.
Merchant discounts: Many are not aware of the merchant discounts if we pay through the baby bonus card. For example, Neo Group is offering discount packages for the baby’s celebrations.
Higher interest rates: If we decide not to touch it, we can leave it be and expect higher interest rates. For example, OCBC offers at least 2% interest per annum for accounts with balance of more thanS$36,000.