WHAT COULD HELP
Mr Yang, the financial consultant, said a review of government grants and more targeted incentives for parents could help.
These include additional tax reliefs for higher-income earners having more children, housing priorities for families with kids, more flexible parental leave, and more family-oriented workplaces.
“In my personal opinion, the high-income earners are in a better place. They are better equipped to raise children amidst the high-cost environment. So if we can encourage them, I think they are in the best position to have more kids,” he added.
As for how new parents can deal with looming expenses, Mr Dasson said they should think about it in steps, with the first one being big expenses like childcare, medical bills and premiums.
“If you manage that from a monthly affordability viewpoint, you tend to be able to still possibly carve something out at the end of the day, right? The end aim is to get just a positive cash flow,” he noted.
During the later years, especially when children enter university, parents will need to consider their savings, he added.
