Singapore has one of the lowest fertility rate in the world. Why? Ask any young parents and they will tell you it is because the cost to raise a child in Singapore is too high. In our local phrase, “money not enough”.
But the ironic truth is that it is not only because Singapore has replaced Tokyo as the most expensive city in the world, but most parents have over spent on their children.
How much does it cost to raise a child in Singapore?
In a Straits Times article last year, Joseph Chong, ex-CEO of a financial advisory firm, estimated that it takes about $600,000 in real dollars per child for a one-child family, and about $500,000 per child for a two-child family to raise a child.
While the figure may look exorbitant at first glance, I will show you the real cost is even higher. Singaporeans are spending way too much on their children. This has only jeopardized their own financial well beings but also setback most people’s retirement.