Every month, the state pays parents 255 euros per child - an amount that helps many families cover their daily expenses. But what if you didn't just use the child benefit for everyday expenses, but invested it strategically?
When it comes to saving for children, many parents initially think of the traditional savings account or a children's custody account. However, due to low interest rates and inflation, the money in these accounts is actually losing value. If you invest child benefit wisely, on the other hand, you can give your child a real financial advantage - be it for their studies, their driving license or the start of their own life.
💡 The fact is that even small monthly amounts can build up considerable assets over the years thanks to the compound interest effect. But which savings method is the best? How safe is an ETF savings plan? And is there a way to benefit from tax advantages in the long term? This article shows you how you can invest child benefit optimally for your child.
We'll help you find the right investment for your child!
- An additional $25,703 per child, thanks to our modern ETF strategy
- Find the perfect ETF investment for your child in a 30-minute video conference from the comfort of your own home.
- Sit back and watch your child's assets grow – our experts will take care of the rest.
Why it's worth investing your child benefit
Many parents use child benefit for their child's everyday needs - clothes, leisure time or small wishes. These expenses are important, but they do not ensure that the money develops a lasting value for the child's future.
What many people don't realize is that child benefit is a guaranteed monthly payment that adds up to a considerable sum over the years. If you don't spend it, but invest it in a targeted way, you give your child a financial head start that makes all the difference.
The problem: inflation eats up your savings
Just leave the child benefit in your account? Not a good idea. If you leave your child benefit in your call money account, it will lose value year after year. Inflation ensures that your money has less and less purchasing power.
- An example: 10,000 euros today will only be worth around 7,400 euros in ten years' time with inflation of 3%.
- The solution: Instead of "parking" money in a current account or savings book, it pays to make smart investments that keep pace with inflation.
From child benefit to assets - a sample calculation
Instead of simply spending the child benefit, you could invest 200 euros a month, for example. Over 18 years, assuming an average return of 6% per year, this would build up capital of over 80,000 euros.
| Monthly savings rate | Capital after 18 years (at 6 % return p.a.) |
|---|---|
| 50 Euro | approx. 20,000 euros |
| 100 Euro | approx. 40,000 euros |
| 200 Euro | approx. 80,000 euros |
Child benefit is a great way to build up a cushion as start-up capital for your child's life - without any additional financial outlay. And the best thing? You don't have to be a millionaire.
Important milestones: What can your child use the money for later?
A problem that many parents underestimate: They save for their child for years - and as soon as they reach their 18th birthday, the saved capital is spent on spontaneous wishes in no time at all. Without a fixed plan or parental control, there is a risk that the money will not be used for important milestones such as studies, training or their first home, but will instead be used for short-term consumer spending.
The good news: with a targeted investment strategy, control remains in your hands and the money is available exactly when it is really needed. For example...
- ... to finance your studies or training: A carefree start to your career without high loan debts.
- ... for the driver's license and the first apartment: support for the first big steps towards independence.
- ... as a reserve for future wishes: whether it's a year abroad or start-up capital for a business idea - financial freedom opens up opportunities.
To ensure that these financial goals are actually achieved, it is therefore important that parents retain control over the investment. This works with a clever investment strategy such as that offered by Invest4Kids - more on this in a moment.
Did you know? To ensure that important decisions remain in the right hands even after the children have reached the age of majority, a power of attorney for children can be a useful addition. Find out more here!
What savings options are there? - An overview
There is also plenty of choice when it comes to financial products: from traditional savings accounts and ETF savings plans to unit-linked insurance policies, there are countless ways to provide for your child's future.
However, not every form of investment offers the same security, flexibility and tax efficiency. While some products promise low costs, they lack long-term predictability or control over the capital. Other solutions offer high potential returns but come with tax disadvantages or restrictions. So which strategy best suits your goals? We offer you an overview.
1. savings account: the traditional, but less profitable way
For a long time, the savings account was seen as a safe and simple way to put money aside for children. Grandparents and parents often opened a savings account at birth to regularly pay in small amounts. However, what used to be a solid form of saving is hardly practical today.
✅ Advantage: High level of security - the capital is not exposed to market fluctuations.
❌ Disadvantage: Hardly any interest - money loses value in real terms due to inflation.
2 ETF savings plan: The classic investment
ETFs (exchange-traded funds) are a popular way to build up assets over the long term. They enable broad diversification, are cost-effective and promise attractive returns.
✅ Advantage: Simple, flexible and often cheaper than actively managed funds.
❌ Disadvantage: The capital belongs solely to the child after their 18th birthday - there is no control over how the money is used.
3. classic child custody account: more flexibility, but also risks
A children's custody account allows parents to invest for their child - usually in shares or funds.
✅ Advantage: Individual investment possible, often good potential returns.
❌ Disadvantage: Capital gains are subject to withholding tax and all assets are transferred to the child at the age of 18.
4th alternative: Invest4Kids - tax-optimized investment with full control
Invest4Kids combines the advantages of various forms of investment and offers you a long-term, tax-optimized solution for your children's pension provision.
✅ Benefit from tax advantages: Profits remain tax-free, reallocations are possible without withholding tax.
✅ Flexibility: savings rates can be adjusted, paused or increased at any time.
✅ Control: parents decide when and for what the money is used - even after the 18th birthday.
Invest4Kids: Smart investment with flexibility and tax benefits
ETFs are one of the most popular forms of investment when it comes to long-term wealth accumulation. They offer broad risk diversification, low costs and attractive potential returns - perfect for parents who want to make early provision for their child.
However, many parents overlook a decisive disadvantage of ETF savings plans: as soon as the child turns 18, they have full access to all their savings - without any restrictions. If you want to ensure that the money is used specifically for sensible purposes such as studies, training or a first home, you need a more flexible solution.
This is where Invest4Kids comes into play. The special concept combines the advantages of a classic ETF savings plan with additional tax optimization and parental control. Parents not only retain full decision-making power, but also benefit from tax advantages that a regular custody account cannot offer.
Numerous positive customer testimonials confirm that this concept works: Many parents report that, for the first time, Invest4Kids makes them feel really confident that their child is optimally financially secure - with no tax traps, no ill-considered spending at 18 and maximum flexibility.
Why Invest4Kids is a sensible alternative
1. tax advantages for maximum wealth accumulation
While a normal ETF savings plan incurs annual taxes on capital gains and distributions, reallocations with Invest4Kids remain tax-free. This means that more capital can be reinvested - and this is clearly noticeable over the years.
2. control even after the 18th birthday
With Invest4Kids, you decide when and for what your child can use the money. Whether it's for a driving license, their first home or later retirement provision - you decide which financial milestones your child can reach with their savings.
3. flexibility in every life situation
Life is unpredictable - with Invest4Kids you can adjust, pause or increase your savings rates at any time without having to worry about tax disadvantages. This makes the investment particularly attractive for parents who plan for the long term but still want to remain flexible.
An example from practice
Imagine you invest 200 euros of your child benefit each month in an ETF savings plan and an equivalent amount via Invest4Kids. While the ETF savings plan has to pay 25% capital gains tax on profits every year, the capital remains fully invested with Invest4Kids. After 18 years, this can amount to a difference of several thousand euros - due to the tax savings alone.
The right of designation means that you retain control over the savings and can ensure that the money is actually used for sensible purposes such as studying, training or your first home.
Another advantage is that grandparents can also help out and build up their assets by making additional contributions. You can find out more about this in the article Investing money for your grandchildren every month.
Personal advice at Invest4Kids: the focus is on you
Investing money can be complicated - especially when it comes to your child's future. ETF savings plans, children's custody accounts, tax-free allowances and potential returns: Many parents are faced with a jungle of financial options and wonder which solution is really the best for their child.
This is exactly what Invest4Kids wants to change. Instead of a standardized solution, we offer tailor-made advice that is specifically tailored to your financial goals, your life situation and the needs of your child.
Why is personal advice so valuable? Every child is different - and financial provision should be just as individual. An advisor analyzes:
✔ What savings goals do you have for your child? (e.g. studies, first home, retirement provision)
✔ What savings rate suits your budget?
✔ What tax advantages can you make the most of?
This means that your customized investment strategy is not only adapted to your financial situation, but also designed to support your child exactly when they really need the money.
At the same time, personal advice helps you to avoid costly mistakes. For example, many parents underestimate the tax advantages that result from a clever investment strategy. An experienced advisor will show you how you can take full advantage of tax benefits with the Invest4Kids concept.
💡 The best thing is that you can make adjustments at any time - whether you want to increase your savings rate, take a break or optimize your strategy. Your contact person will support you in the long term and ensure that you always make the best decisions for your child's financial future.
Conclusion: use child benefit and make clever provisions
Instead of simply spending the child benefit, you can invest the 250 euros per month from birth in a targeted manner - and thus create long-term financial security for your offspring.
A smart investment with Invest4Kids has several advantages:
✔ Long-term wealth accumulation that keeps pace with inflation.
✔ More control over your savings instead of spending money without thinking at the age of 18.
✔ Tax advantages that traditional ETF savings plans or child custody accounts do not offer.
Choosing Invest4Kids combines the best aspects of flexible pension provision with security, tax savings and parental control. This means more financial freedom for your child - without risks or unnecessary fees. Start now and secure your child's future!
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