Singapore: Costliest City for HNWIs, Financial Tips 2025

Education is another significant expense, particularly for families. Public school fees for permanent residents range from SGD 293 to SGD 343 per month for primary education, SGD 598 to SGD 718 for secondary, and SGD 516 to SGD 647 for pre-university levels. Private schools are even pricier, with annual fees ranging from SGD 15,900 to SGD 46,620 for primary education. Over the past 20 years, education costs have risen by 74.7%, far outpacing general inflation, which increased by 50.9% over the same period. These costs highlight the need for careful budgeting, especially as Singapore’s competitive property market and rising daily expenses impact all income levels.

Families with children receive targeted support, including SGD 500 LifeSG credits per child aged 12 and below, and SGD 500 Edusave or Post-Secondary Education Account (PSEA) top-ups for those aged 13 to 30. For larger families, the Child Development Account (CDA) First Step Grant has been increased by SGD 5,000 for third and subsequent children born from February 18, 2025, and a new Large Family MediSave Grant of SGD 5,000 will be credited to the mother’s CPF MediSave account. These measures can significantly reduce financial strain if used strategically, such as allocating vouchers for essential purchases and saving tax rebates for long-term goals.

For those seeking to grow their wealth, low-risk investments like Singapore Savings Bonds (SSBs) offer guaranteed returns and flexible tenures, ideal for conservative investors. Unit trusts, accessible through CPF Investment Schemes, provide another avenue for diversification. Financial literacy is essential for navigating these options, and initiatives like MoneySense offer guidance on budgeting and investing. For example, a PhD student earning SGD 2,700 monthly can live comfortably by allocating SGD 1,600 for rent, SGD 400 for food, SGD 50 for transportation, and SGD 100 for other expenses, while investing the remainder in unit trusts, demonstrating that disciplined financial planning can yield a high quality of life even on a modest income.

The high cost of living can also impact mental health, with financial stress contributing to anxiety and depression. Government support, such as vouchers and rebates, can alleviate some of this pressure, but individuals must adopt disciplined budgeting practices. For instance, shopping at wholesale markets or opting for cost-effective grocery options can reduce food expenses. By focusing on essential spending and seeking financial counseling if needed, Singaporeans can maintain financial stability and well-being.

Upskilling is another key aspect of long-term planning, supported by the 2025 budget’s SkillsFuture initiatives, including a SGD 4,000 credit for courses and training allowances for those aged 40 and above. By investing in skills in high-demand sectors like technology and finance, Singaporeans can enhance their earning potential and job security, ensuring they remain competitive in a dynamic economy.

Education costs are another significant concern, particularly for families. Public school fees for permanent residents range from SGD 293 to SGD 343 per month for primary education, SGD 598 to SGD 718 for secondary, and SGD 516 to SGD 647 for pre-university levels. Private schools are far costlier, with annual fees of SGD 15,900 to SGD 46,620 for primary education and SGD 17,800 to SGD 50,200 for secondary. Over the past 20 years, education costs have surged by 74.7%, compared to a 50.9% increase in general inflation, driven by demand for degrees in Singapore’s knowledge-driven economy. These costs highlight the need for disciplined financial planning across all income levels, as even essential expenses strain household budgets.

Interestingly, some costs have decreased, with healthcare costs dropping by 35.8% in 2025, likely due to government subsidies through MediSave for citizens and permanent residents. However, other luxury services have seen significant price increases, such as business-class flights (up 17%), private school fees (up 12.1%), and hotel suites (up 10.3%). Despite these costs, Singapore’s stable political environment, safe community, and high-quality services, such as education and healthcare, make it an attractive destination for residents and those looking to relocate, though competition for prime residential properties remains fierce.

Families with children are a key focus, with SGD 500 LifeSG credits per child aged 12 and below, and SGD 500 Edusave or PSEA top-ups for those aged 13 to 30. For larger families, the CDA First Step Grant has been increased by SGD 5,000 for third and subsequent children born from February 18, 2025, and a new Large Family MediSave Grant of SGD 5,000 will be credited to the mother’s CPF MediSave account for each third and subsequent child. Taxpayers will benefit from a 60% personal income tax rebate for the 2025 assessment year, capped at SGD 200, providing modest but meaningful relief. Businesses also receive support, including a 50% corporate income tax rebate with a minimum benefit of SGD 2,000, increased co-funding for raising lower-wage workers’ salaries, a SGD 1 billion Private Credit Growth Fund, and SGD 150 million for the Enterprise Compute Initiative to enhance AI capabilities.

Singaporeans should strategically utilize these benefits to maximize their impact. For example, CDC vouchers can reduce grocery and dining expenses, while U-save rebates can lower utility bills, freeing up funds for savings or debt repayment. Families should allocate grants like the CDA First Step Grant and MediSave contributions to education and healthcare costs, ensuring long-term financial stability. By integrating these support measures into their financial plans, Singaporeans can mitigate the high cost of living and build a stronger financial foundation.

For those seeking to grow their wealth, low-risk investments like Singapore Savings Bonds (SSBs) offer guaranteed returns and flexible tenures, typically yielding 2–3% annually. Unit trusts, accessible through CPF Investment Schemes, provide diversification, though investors must assess their risk tolerance. Financial literacy is crucial, and initiatives like MoneySense offer resources to improve budgeting and investment decisions. For example, a PhD student earning SGD 2,700 monthly can live comfortably by allocating SGD 1,600 for rent, SGD 400 for food, SGD 50 for transportation, and SGD 100 for other expenses, while investing the remainder in unit trusts. This demonstrates that even modest incomes can support a high quality of life with prudent planning. However, some may argue that the high cost of living limits investment opportunities, as disposable income is consumed by essentials. Yet, government support and low-risk options like SSBs counter this by providing accessible avenues for wealth-building.

The high cost of living can also impact mental health, with financial stress linked to increased anxiety and depression. Government support, such as vouchers and rebates, can alleviate some pressure, but individuals must adopt cost-saving strategies. For instance, shopping at wholesale markets or opting for reduced-price groceries can lower food expenses. By focusing on values-based living—prioritizing family, health, and personal growth—Singaporeans can maintain financial and emotional resilience. Financial discipline, combined with government support, enables individuals to navigate Singapore’s expensive landscape without compromising their well-being.

The 2025 budget’s focus on upskilling, through initiatives like the SkillsFuture Workforce Development Grant and a SGD 4,000 SkillsFuture Credit for courses, encourages continuous learning. By investing in skills in high-demand sectors like technology, healthcare, and finance, Singaporeans can enhance their earning potential and job security. The government’s efforts to boost the Singapore Exchange (SGX) through tax incentives for new listings could also create investment opportunities, particularly in Singapore-listed equities like S-REITs, which may benefit investors seeking stable returns.

​Looking ahead, Singaporeans must remain proactive as global economic uncertainties, such as potential trade disruptions or inflation, could impact costs. The government’s continued support, including fiscal surpluses projected at SGD 6.8 billion for 2025, suggests ongoing efforts to mitigate these challenges. By upskilling, diversifying income sources, and regularly reviewing financial plans, Singaporeans can capitalize on the city’s stability and quality of life. Specific actions include maximizing CPF contributions, using vouchers for essential purchases, and exploring low-risk investments. By embracing financial literacy and adapting to economic shifts, Singaporeans can thrive in this expensive yet rewarding city-state, ensuring a secure and prosperous future.