Average Household Budget in Singapore

Most people have a budget in mind when they spend money. However, this budget can vary depending on how much money you make. How does your monthly spending habit compare to the rest of the country? Below we analyze the Singaporean government's household expenditure survey to examine the monthly budgets of an average Singaporean household.

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Average Monthly Budget of a Singaporean Household

According to the Singaporean government's latest survey of household expenditure, the median household spent S$4,699 per month (S$56,388 per year) in 2013, excluding imputed rental of owner-occupied accommodation. Unsurprisingly, the biggest areas of spending covered the most essential necessities of a person's livelihood: food and beverage (28%), transport (17%) and home related expenditures including housing, utilities and furnishings (13%).

Household Expenditure by Income Quintile (S$)1st - 20th21st - 40th41st - 60th61st - 80th81st - 100th
Total2,2313,5364,6995,5907,568
F&B7161,1161,3341,4241,619
Transport2545247781,0051,495
Home3794896157681,186
Health214275407479621
Recreation125236372527734
Education146241322333511
Insurance141218300345467
Telecom132211235247258
Shopping64123198251328
Others5388115163245

However, there were meaningful differences in these spending patterns depending on the income of the household. Specifically, we found the biggest differences in how wealthy and less wealthy families spent on food, transportation, education and recreation. While some of these differences were obvious and expected, there were also some surprising findings that are worth delving into.

Average Food & Beverage Expenditures: Groceries vs Dining Out

The typical household in Singapore spent about S$1,334 per month on food, which represents 28% of their total monthly budget. Digging deeper into the data, we found that most families spend around S$400 to S$500 per month on groceries (including food, beverage, alcohol and tobacco) without much variation. However, the top quintile households spent almost 14x as much on dining out at restaurants and pubs than the bottom quintile households. Funnily, it seems most families all love eating at hawker centres equally, with the category consisting about S$400 to S$500 per month for most income levels.

Average Transportation Expenditures: Private Cars vs. Public Transportation

We found that the median household in Singapore spent about S$778 per month on transportation, representing about 17% of their monthly budget. This proportion varied from 11% for the bottom 20% of households to 20% for the top 20% of households. Not only that, the composition of transportation expenditure varied vastly depending on the family's income level. For instance, the most wealthy families in Singapore spent 15% of the 20% on purchase and operation of their personal private vehicles, in contrast to 11% for the median family and 6% for the bottom 20%. The income disparity was clear also in the use of their public transportation: the top 20% not only spent a lower proportion of their income (2%) on public transportation than the rest of the country (4-5%), but also a lower dollar amount of $172 per month compared to the median of S$195 per month.

Average Recreation & Vacation Expenditures

The median household in Singapore spent about S$440 per month on recreational activities, which represents 9% of their monthly budget. This particular expenditure category is considered "discretionary spending," meaning that it's not a necessity. Given this, we saw fairly large discrepancy in its level depending on the household's income. For instance, the top 20% of families spent around S$1,022 (13% of budget) on entertainment and recreation every month, while the bottom 20% of families only spent S$145 (6% of budget) on these activities.

Within recreation expenses, the amount spent on travel and vacation exhibited particularly large differences, with top households spending S$630 per month (8% of budget) compared to SS$190 (4% of budget) for the median families and $59 (2.6% of budget) for the bottom 20%.

Average Education Expenditures: Money Begets Money

On average, Singaporean households spent S$322 per month on educational services. Furthermore, most families spend about 7% of their monthly budget on education. However, there was a stark contrast on how this 7% is distributed among households with different levels of income.

Education Expenditure by Income Quintile (S$)1st - 20th21st - 40th41st - 60th61st - 80th81st - 100th
Total Education Services146241322333511
Pre-Primary and Primary Education1630535774
Secondary Education910151241
Post-Secondary Education (Non-Tertiary)356420
Polytechnic Education172620106
University education, local4576827369
University education, overseas11132422113
Private tuition and other education courses3468107144175
Books3361014

While most families spent 1%-1.5% of their budgets on pre-primary, primary and secondary education, families differed on how much they spend on post-secondary education. For instance, the top 20% of households spent 1.5% of their budgets on overseas university education, or about S$113 per month, multitudes higher than 0.4%-0.5% (or S$11 to S$24) spent on overseas universities by other families. Naturally, less well-off households concentrated their expenditures on local institutions. In particular, the bottom 60% of families spent a substantially higher amount (S$20-S$30/mont) on polytechnic education than did the top 40% of families (S$6-S$10/month). In terms of private education, most families surprisingly spent a similar proportion (2%) of their budgets, although the bottom 20% of households spent a slightly lower amount of 1.5%.

Other Expenditure Categories

Housing: There was a remarkable consistency in terms of how much households spent on their homes regardless of how much money they made. The average household spent about 13% of their budget (or S$615) on their housing, utilities and furnishings, which was comparable to the 16% spent by the top quintile and the 17% spent by the bottom quintile. Given how central home is to everyone's life, it seems all families try to maximise their standard of living while spending within their means.

Health & Personal Care: Health is one of the most important things in life, and everyone should utilise as much resource as they can to maintain it. Therefore, we observed that most households spend 8-10% of their budget on health and personal care areas. This meant that the typical household was spending S$407 per month (or S$4,884 annually) on things like medical services and personal grooming services.

Insurance: While most households spent around 6% of their budgets on insurance, the composition of this expenditure differed materially. For instance, wealthier families tended to spend more heavily on life, housing, transport insurance and travel insurance, while less wealthy families concentrated their spending more on health insurance. This makes sense given that the top households have more valuable homes and cars, and have more discretionary incomes to direct towards retirement and travel. On the other hand, the bottom half of households may need extra protection on more basic necessities in life, such as health insurance.

Insurance Expenditure by Income Quintile (S$)1st - 20th21st - 40th41st - 60th61st - 80th81st - 100th
Total Insurance141218300345467
Life Insurance (Term only)25467788123
Housing Insurance234511
Health Insurance96129154171205
Transport Insurance16345471111
Other Insurance37111118

Telecommunication:: Unsurprisingly, most families spent around S$240 per month on telecommunication services, with the exception of the bottom quintile. This cohort spent only S$132 per month on telecommunication services, suggesting they are less able to afford high data limit plans than the rest of the country.

Shopping: On average, Singaporean households spent about S$200 per month on shopping for clothing, shoes, accessories, and other personal articles (including things for babies). This represented 4.2% of their monthly budgets, which was similar for the rest of the country. However, the bottom 20% of the country was able to spend only 2.9% their budgets on shopping.

Social Support Services: Philanthropy is one of the most beautiful things people can do with their money. However, it turns out being rich doesn't necessarily lead to giving more donations. On average, Singaporean households spent S$30 per month (S$360 per year) on social support services. Unsurprisingly, the poorest 20% of the country spent only S$6 per month on social support services, given their limited budget. However, even the richest 20% only spent S$39 per month on social services, not much higher than the median. The most generous income group was 61st to the 80th percentile of households, who spent S$53 per month (S$636 per year) on social services. It seems being comfortably well off financially is more conducive to being kind than being very rich.

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