Navigating the Baby Bonus Scheme: What Parents Should Know
- Charmaine Kek
- 2 days ago
- 3 min read
Raising a child comes with immense joy and love, alongside very real financial pressures. From daily necessities to education and healthcare, the costs can add up quickly, especially in the early years. For many parents, these worries are not about luxury, but about providing stability and care. That's why understanding the support available matters. Singapore's Baby Bonus Scheme is designed to help ease some of these financial worries, but it can feel confusing at first glance. Here's a simpler way to understand how it works.
Two Main Parts of the Scheme
The Baby Bonus Scheme provides support in two main ways:
Baby Bonus Scheme
The Baby Bonus Scheme is a government support programme to help parents cope with the cost of raising a child.
Baby Bonus Cash Gift (BBCG)
The Baby Bonus Cash Gift gives parents cash in stages to help with daily expenses, childcare, and medical costs.
For the first or second child, families receive $11 000
For the third child and beyond, families receive $13 000
Instead of being paid all at once, the money is disbursed every six months over the first six and a half years of your child's life. This ensures that parents receive continued support as your child grows. The cash gift is deposited into a Child Savings Account (CSA).
Child Savings Account (CSA)
The Child Savings Account is a joint account that is automatically opened when a Child Development Account (CDA) is created for your child, after enrolment into the Baby Bonus Scheme. It is used as the default account for government payouts, including:
Baby Bonus Cash Gift
Education awards
Any other financial assistance your child may receive
To qualify for the BBCG, your child must be a Singapore Citizen, and you must be lawfully married to your spouse.
Child Development Account (CDA)
The Child Development Account is a special savings account for your child that helps parents save for child-related expenses and future needs.
First Step Grant
$5 000 for the first and second child
$10 000 for the third child and beyond, for children born on or after 18 February 2025
The First Step Grant is automatically deposited when parents open the CDA at DBS/POSB, OCBC, or UOB. No extra application is needed.
Government Co-Matching
The government also matches parents' savings dollar-to-dollar, up to a set cap based on birth order. This means every dollar parents save is effectively doubled. Parents can save and use the CDA anytime before 31 December of the year your child turns 12.
What Can CDA Funds Be Used For?
CDA savings can cover approved child-related expenses, such as:
Fees for registered childcare centres, kindergartens, special education schools, and early intervention programmes
Medical expenses at hospitals and GP clinics
Premiums for MediShield Life or Medisave-approved private integrated plans
Assistive technology devices
Childminding fees under the Early Childhood Development Agency's (ECDA) Childminding Pilot
After Your Child Turns 12
Any unused CDA funds are automatically transferred to the Post-Secondary Education Account (PSEA), up to the applicable cap. Parents can continue contributing and receive government co-matching until:
The cap is reached, or
Your child turns 18, whichever comes first
The Post-Secondary Education Account helps families save for post-secondary education, including diploma or undergraduate programmes, and can also be used to repay government education loans or financial assistance schemes.
Where to Learn More?
For full detailed information on the Baby Bonus Scheme — including eligibility, payment schedules, and official guidelines — visit Families For Life / LifeSG Baby Bonus webpage:
All information stated in this article is based on figures provided in 2026. For the latest updates regarding the Baby Bonus Scheme and CDA, please refer to MSF's Made For Families — Baby Bonus Scheme and CDA website.
Support for Unplanned Pregnancies
We understand that not every pregnancy is planned, and it can be a difficult and emotional time. If you or someone you know is facing an unplanned pregnancy, you are not alone. You can reach out to us at 9183 4483 to speak to someone who understands and can guide you through your next steps. We are here for you, and we want to help you.
Sources: Families For Life / LifeSG Baby Bonus webpages