Different parents have different aspiration for their kids, some might wished to pay more for private Montessori preschool education, up to 4 digit figure a month after subsidies. While with enhanced kifas scheme kicking in this year, the lowest fees for good basic pre school kindergarden/ childcare/ infant care can go as low as 2 digit figure a month, with many low to middle income families paying averagely a low 3 digit figure each month for childcare infant care, and low 2 digit figure for kindergarten.
After the CDA 1 for 1 top up and CDA first step of $3,000 for every child born, the enhanced kifas subsidies scheme is the next best thing, promising good preschool education at very low fees for all singaporean children, especially beneficial to the low income group.
In modern 21st Singapore society, it is hard to survive on a single income, most families are on dual income mode, with infant/ childcare services almost essential and critical to every family, while some roped in the grandparents and relatives, as it truly takes a village to raise children. There will be families on single income, and this is especially tough for the low income group.
Previously i was paying $170+ a month for sparkletots preschool from N1 onwards, 4 years of preschooling from age 3 to 6 will costs me about $8160 ($170 x12 months x 4 years), with $3,000 CDA first step and if i top up $3,000 into my child CDA account, the govt will match 1 for 1 for another $3,000, total $9,000 which is just nice to cover the 4 years preschooling. All in all i paid $3,000 for 4 years of preschool fees, with perhaps another $1,000 set aside for miscellaneous cash payment, like photos, concert, material fees etc. It is really affordable as compared to many other countries.
While this is the cheapest basic package available and the most common scenario for most of the families, i have no doubt that is good quality pre-schooling at affordable pricing. My kids love the teachers and their school a lot.
Previously, the plan was to deposit into the child CDA account $1,000 each year from age 4, 5, and 6, we have $3,000 from CDA first step which is enough to cover the first year in N1. The amount will be just nice for successful deduction for the children preschool fees until the child enter primary school.
With enhanced kifas kicking in just recently, we are now paying a low 2 digit figure, and as such, we do not need to top up $1,000 each year, the first step $3,000 is more than sufficient to cover the 4 years, Preschool kindergarden at Anchor Operator is now basically free, for low income families who is also intending to use the $3,000 CDA first step for education instead of other expenses.
Money not spent is not yet money saved, thus i will be channeling the $1,000 each year into the children stock portfolio, and when the child reached 12th, i will deposit the $3,000 saved into the CDA account for the govt to match it 1 for 1, earning a good 100% returns, while also earning the returns gained over the years, which can be more than 100%, at a rate of 10% CAGR, it takes about 7 years for you to double your money.
The cash gift ranging from $8,000 to $10,000 is also saved and invested into the child’s portfolio, which is perhaps the best gift i can give them after my companionship, being around for their childhood.
ALl the money saved and invested can then be used for their tertiary education, though i encouraged them to take a study loan and repay it by themselves after they step into the workforce. Over the years, it can be used for their enrichment, or any other hobbies that they are interested in, i am particularly inclined towards music choices for them, as i believe music can heal many wounds and can accompany them for many years to come.