Financial Planning Guide for Families with Two Children in Preschool

cmoops
Dec 29, 2025
8 min read

Understanding the Financial Impact of Two Preschoolers
Creating a Sustainable Preschool Budget
Maximizing Government Subsidies and Support
Long-term Financial Planning While Managing Preschool Costs
Balancing Quality Education and Financial Stability
Nurturing Values-Based Money Lessons at Home
Community Resources for Financial Support
Final Thoughts: Finding Peace in Your Financial Journey

For parents with two children attending preschool simultaneously, financial planning takes on a whole new dimension. The joy of watching your little ones grow and learn comes with the responsibility of managing a significant investment in their early education. At Little Olive Tree Preschool, we understand that this season of life brings unique financial challenges, especially when you're juggling the costs of multiple preschool tuitions.

Many families in Singapore find themselves navigating this financial terrain with a mix of excitement and concern. How do you provide quality early childhood education for both children while maintaining your family's financial stability? How can you balance immediate educational expenses with long-term saving goals? And importantly, how might your faith values guide your financial decisions during this important season?

This comprehensive guide offers practical strategies for families with two children in preschool, helping you create a financial plan that honors your family's needs, values, and future goals. From budgeting techniques to government subsidies, from long-term planning to teaching children about stewardship, we'll explore holistic approaches to financial wellness during the preschool years.

Understanding the Financial Impact of Two Preschoolers

When two children attend preschool concurrently, the financial implications can be substantial. In Singapore, preschool fees typically range from $300 to $2,000 per month per child, depending on the program type, hours, and additional services. For families with two preschoolers, this could mean dedicating anywhere from $600 to $4,000 monthly to early childhood education alone.

Beyond tuition, there are additional expenses to consider:

Registration and enrollment fees (often annual)
School materials and supplies
Uniforms or appropriate clothing
Transportation costs
Occasional field trip expenses
Enrichment activities outside school hours

The financial impact extends beyond these direct costs. Many parents adjust their work schedules or employment arrangements to accommodate preschool hours, potentially affecting household income. Some families also face the "time crunch" of having children in different locations if their preschoolers attend separate centers.

Before creating your financial plan, take time to understand your complete preschool-related expenses for both children. This foundation of awareness will help you develop a realistic budget that accommodates your family's needs while maintaining financial health.

Creating a Sustainable Preschool Budget

With two children in preschool, a carefully crafted budget becomes your roadmap to financial stability. Rather than viewing a budget as restrictive, consider it a thoughtful allocation of resources that reflects your family's priorities and values.

Here's a step-by-step approach to creating a sustainable preschool budget:

Calculate your total monthly income (after CPF contributions)
List all fixed monthly expenses (housing, utilities, insurance, loan payments)
Add your dual preschool costs with all associated fees
Budget for variable expenses (food, transportation, healthcare, clothing)
Identify areas where adjustments can be made if needed

Many financial experts recommend following the 50/30/20 rule: 50% of income for needs, 30% for wants, and 20% for savings and debt repayment. However, during the preschool years with two children, you may need to temporarily adjust these percentages, perhaps reducing discretionary spending to accommodate educational costs.

Some families find success with these budgeting approaches during the dual-preschool years:

The envelope system: Allocating cash for different spending categories
Zero-based budgeting: Assigning every dollar a specific purpose
Values-based budgeting: Aligning spending with your family's core values

Regardless of your approach, be sure to include some margin for unexpected expenses. Even small emergency savings can provide peace of mind during this financially intensive season.

Maximizing Government Subsidies and Support

Singapore offers several subsidies and financial support programs that can significantly reduce the burden of preschool expenses for families with multiple children. Understanding and maximizing these benefits is crucial for effective financial planning.

Basic Subsidy

All Singaporean children attending eligible preschools (including Little Olive Tree locations) qualify for a basic subsidy of up to $300 for infant care and up to $150 for childcare. This subsidy is automatically applied and directly reduces your monthly fees.

Additional Subsidy

Families with monthly household incomes of $12,000 or below may qualify for additional subsidies. The amount varies based on household income, with lower-income families receiving higher subsidies. With two children in preschool, these additional subsidies can provide substantial financial relief.

Child Development Account (CDA)

The CDA First Step Grant provides $3,000 for each child, without requiring matching contributions. Beyond this, the government matches your contributions dollar-for-dollar up to the cap for each child. For your second child, the government matches up to $6,000 of your savings. These funds can be used for approved educational and healthcare expenses, including preschool fees.

Working Mother's Child Relief

Working mothers can claim tax relief of 20% of their earned income for their second child. This tax benefit can help reduce your overall tax burden, freeing up resources for educational expenses.

Kindergarten Fee Assistance Scheme (KiFAS)

For children in eligible kindergartens, KiFAS provides fee assistance based on household income. If one or both of your children are in kindergarten programs, exploring this option could provide additional financial support.

To maximize these benefits, keep detailed records of all educational expenses and maintain updated information with relevant government agencies. Reviewing your subsidy eligibility annually is important, as changes in household income or family circumstances might affect your entitlements.

Long-term Financial Planning While Managing Preschool Costs

While managing the immediate costs of two children in preschool, it's essential not to lose sight of your family's long-term financial goals. This period typically lasts for 2-4 years, after which your educational expenses may change significantly.

Maintaining Retirement Contributions

Even during financially intensive seasons, try to maintain at least minimal contributions to your retirement accounts. The compound growth you miss during these years can be difficult to recapture later.

Education Savings for Primary and Beyond

While focusing on preschool expenses, consider starting small but consistent contributions to education funds for primary school and beyond. Even modest monthly amounts can grow meaningfully over time.

Insurance Planning

Review your insurance coverage to ensure your family is adequately protected. With two young children depending on your income, appropriate life, health, and disability insurance becomes even more crucial.

Debt Management

Avoid accumulating high-interest debt to cover preschool expenses. If you already have significant debt, include debt reduction in your financial plan, prioritizing high-interest obligations.

Housing Decisions

Some families consider delaying housing upgrades until after the preschool years. If you're planning to move or renovate, evaluating the timing in relation to your preschool expenses can help manage your overall financial picture.

Remember that this intensive financial period is temporary. Creating a timeline that shows when your preschool expenses will decrease can help you maintain perspective and plan for the shifting of resources back to other financial goals in the future.

Balancing Quality Education and Financial Stability

Finding the sweet spot between providing quality education and maintaining financial health requires thoughtful consideration of your priorities and values. At Little Olive Tree, we believe that a holistic education nurtures children's character and capabilities without necessarily requiring the highest price tag.

Evaluating Educational Value

When assessing preschool options for your children, consider:

The alignment of the school's values with your family's beliefs
The quality of teacher-child interactions and relationships
The learning environment and how it nurtures development
The curriculum approach and how it supports your child's growth

At Little Olive Tree's 19 Preschools islandwide, our "Truth, Beauty, and Goodness" curriculum focuses on developing both academic excellence and strong character, providing value that extends beyond the preschool years.

Creative Approaches to Manage Costs

Some families find these approaches helpful when balancing quality and cost:

Choosing half-day programs for one or both children if appropriate
Staggering drop-off and pick-up times to potentially reduce extended hours fees
Exploring whether sibling discounts are available
Involving grandparents or family members for certain days, if possible

Communication with Your Preschool

Open communication with your preschool administration about financial concerns is important. Many preschools, including Little Olive Tree, are committed to supporting families and may offer flexibility or payment plans when needed.

Nurturing Values-Based Money Lessons at Home

The preschool years provide rich opportunities to begin teaching children about money management in ways that reflect your family's values. These early lessons can complement the character development happening at preschool.

Age-Appropriate Financial Education

Even young children can begin to understand basic financial concepts through everyday experiences:

Using a clear jar for saving helps children visually understand money accumulation
Involving children in simple shopping decisions teaches choice and value
Reading stories that include themes of saving, sharing, and spending wisely
Playing simple games that involve counting and exchanging money

Connecting Money and Values

At Little Olive Tree, we believe in nurturing children who understand truth, appreciate beauty, and contribute goodness to the world. These values can be reflected in how you talk about money at home:

Truth: Being honest about needs versus wants when making purchases
Beauty: Appreciating simple pleasures that don't require spending
Goodness: Setting aside money to share with others in need

Creating Learning Moments at Home

Parent-child activities at home can reinforce financial concepts while strengthening bonds:

Setting up a pretend store to practice simple transactions
Sorting coins by type and value as a counting activity
Creating simple crafts using recycled materials to teach resourcefulness
Growing vegetables or herbs together to understand production and value

These home-based learning activities complement the preschool experience without requiring formal curriculum components, while building important life skills.

Community Resources for Financial Support

Beyond government subsidies, Singapore offers various community resources that can provide additional support for families with multiple preschoolers.

Religious Organizations

Many churches and religious organizations offer support programs for families, including:

Family assistance funds for education
Community sharing initiatives for children's materials
Parent support groups that share resources and experiences

Little Olive Tree partners with several churches across Singapore, including Bethany Presbyterian Church and Foochow Methodist Church, which may offer community support for families.

Community Centers

Your neighborhood Community Center might provide:

Financial literacy workshops
Low-cost enrichment activities that complement preschool learning
Information about additional support programs

Parent Networks

Connecting with other parents who have multiple children in preschool can lead to practical support through:

Shared transportation arrangements
Exchange of outgrown uniforms or materials
Information about financial strategies that have worked for others

Professional Financial Guidance

Consider seeking advice from financial professionals who specialize in family financial planning. Many offer initial consultations at low or no cost, and their expertise can help you optimize your resources during this financially intensive period.

Final Thoughts: Finding Peace in Your Financial Journey

Navigating the financial aspects of having two children in preschool simultaneously can be challenging, but it also presents opportunities for growth in stewardship and trust. At Little Olive Tree, we believe that financial decisions are part of the larger journey of nurturing families where children can flourish.

Remember that perfect financial management isn't the goal; rather, aim for faithful stewardship of the resources entrusted to your care. Some seasons require financial stretching to invest in your children's foundations, and that's okay.

The preschool years pass quickly, though they may seem long in the moment. The investments you make now—both financial and relational—contribute to your children's development into confident, curious individuals with strong character foundations.

As you implement the strategies in this guide, consider your financial choices as opportunities to model important values for your children: responsibility, generosity, contentment, and trust. These lived examples often teach more powerfully than any formal lesson could.

Managing finances with two children in preschool requires intentionality, creativity, and sometimes sacrifice. By understanding the full picture of your preschool expenses, maximizing available subsidies, creating a workable budget, and maintaining focus on long-term goals, you can navigate this season with confidence.

At Little Olive Tree Preschool, we partner with parents in nurturing children who will become blessings to society. We recognize that financial stability is an important part of creating homes where children can thrive. Just as the olive tree symbolizes beauty, abundance, and flourishing growth, may your family find ways to flourish even while managing the financial demands of these important early education years.

By balancing practical financial wisdom with your family's values and priorities, you can create an approach that works for your unique situation. Though the dual-preschool years may strain your budget temporarily, the foundation you're building—both educational and financial—will benefit your family for years to come.

Are you considering Little Olive Tree Preschool for your children? We'd love to connect with you and discuss how our values-based approach might align with your family's educational goals and financial planning. Register your interest today to learn more about our "Truth, Beauty, and Goodness" curriculum and our 19 locations across Singapore.

Little Olive Tree aims to shape Singapore's future by investing in its youngest generation. Through holistic early education and close partnership with families, we nurture resilient, values-driven children who will one day make a positive difference in society.

This content is for informational purposes only. For the most current information about our programs and services, please contact us at hello@lot.edu.sg or Whatsapp us at 80353772.