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CHILDREN

Putting Bavarian housewives before disadvantaged children

Bavarian conservatives’ insistence on paying parents to keep their children out of public day care has made a mockery of Angela Merkel’s family policies, writes Der Tagesspiegel’s Hans Monath.

Putting Bavarian housewives before disadvantaged children
Photo: DPA

As Chancellor Merkel’s centre-right coalition held torturous deliberations to hammer out contentious tax cuts last weekend, Germany’s finance minister was naturally there.

The country’s family minister, however, wasn’t at the table as Merkel’s conservatives, their Bavarian allies, and the Free Democrats agreed to implement a subsidy for families opting out of sending their children to day care known as Betreuungsgeld.

The fractious coalition has decided to introduce this hefty state entitlement with wide-ranging societal implications at a time when its coffers are empty.

Rather than building day-care centres and improving other facilities for children, the government has chosen to increase direct payments to single-earner families, which are already afforded tax breaks and subsidized health care premiums.

There is no existential reasoning for this – it’s more about the psychology of recognizing the contributions of those housewives who feel disadvantaged by state subsidies for working parents.

The Christian Social Union (CSU), the Bavarian sister party to Merkel’s Christian Democrats (CDU), has become the chief lobbyist for these women, even though a growing number of conservative family policy experts have realized that broad transfer payments will not alleviate the biggest problems currently faced by German families.

The new Betreuungsgeld subsidy certainly won’t help state governments provide the guaranteed day-care spots for children in two years as mandated by law – a lack of which effectively limits the options of working parents.

Given the option of quality day care, hardly any middle-class working mothers would decide to ditch their job to stay at home with the kids for a measly €150 a month. It is more likely that families from weaker socio-economic backgrounds will go for it.

The eastern German state of Thuringia saw exactly that happen after it introduce a similar subsidy in 2006: the number of two-year-olds in day care plummeted. Less well-educated parents in particular opted to take the cash rather than send their kids to professional day-care centres, which in turn saw their budgets cut to finance the subsidy.

The number of disenfranchised children is even higher in several other German states. Day care and preschools can help children barely able to speak German, so they’re better prepared by the time they start school. The billions of euros that Betreuungsgeld will cost would be better spent on programmes helping the integration of such disadvantaged kids.

Unfortunately, there’s no strong presence at the Family Ministry to fight against Betreuungsgeld at this decisive moment for German society. Former Family Minister Ursula von der Leyen, now Labour Minister, demonstrated the potential political power of the family portfolio when allied with civic groups and the wider public interest while in office. Her young successor, Kristina Schröder, however, lacks the clout to eliminate even the most poisonous aspects of Betreuungsgeld.

The young minister’s failure to roll back the CSU’s cherished new subsidy is evidence of her dearth of experience and authority – but her appointment to the post two years ago also shows how little Chancellor Merkel values family policy.

So perhaps it’s sadly only logical that the coalition would rather allow the CSU to score points with Bavarian housewives than give as many children as possible a better lot in life.

This commentary was published with the kind permission of Berlin newspaper Der Tagesspiegel, where it originally appeared in German. Translation by The Local.

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FAMILIES

How much does it cost to bring up a child in Germany?

Most Germans say that family is the most important thing in their life - but what are the realities of raising children in Germany? We take a look at the outlook for families, and how much it really costs to raise a child.

A young girl with a piggy bank
A young girl with a piggy bank. Photo: picture alliance/dpa | Patrick Pleul

The outlook for families in Germany

According to a recent report on families and finance by German payments provider Mollie, there are 11.4 million family households in Germany at the moment. Around 35.6 percent of these households have just one child, while 26.5 percent have two, and the rest have three or more.

Children under the age of 18 live in 8.2 million family households, and in the remaining 3.4 million households, families live with adult children. 

When it comes to the birthrate, Germany general falls in the middle of other European countries, with each woman having an average of 1.54 children. 

The so-called lockdown baby boom may be having some impact on the numbers: in March 2021, more than 65,000 babies came into the world in Germany. This is the highest number of newborns the country has seen in a single month since 1998. 

However, the authors of the study say the link between the birthrate and Covid may be a little more complex than that. While there were indeed record births in March, the birthrate only crept up by around 1.4 percent in the first part of the year as a whole. 

“This suggests that the pandemic has had little to no impact on family planning,” they explained. “Though families and couples may be keeping a closer eye on their finances and planning their spending more carefully since the pandemic.

“However, since there also hasn’t been a dramatic decline in births, current financial constraints nevertheless don’t seem to be having an impact on births in Germany either.”

READ ALSO: EXPLAINED: Everything you need to know about parental leave in Germany

Cost of raising a child

Many parents will tell you that you can’t put a price on having children, but the Federal Statistical Office (Destatis) would beg to differ. According to the latest data, raising a child in Germany will set you back around €148,000 by the time they turn 18 – and the costs increase along with the child’s age.

Here are the average annual costs of raising a child by age, according to Destatis:

  • 0-6 years old: €7,000 per year
  • 6-12 years old: €8,200 per year
  • 12-18 years old: €9,400 per year 

So, what are the main expenses involved in raising a child? According to Destatis, food, education and the cost of childcare in the first years of life all make a major dent in the family budget. Then, as children get older and develop other hobbies and interests, spending on leisure, entertainment and culture tends to also increase.

When comparing affluent families with low-income families, there was a clear difference in how much was spent on raising children. In 2018, poorer families spent an average of €424 per month on each child. Wealthy families, on the other hand, spent €1,212 euros – almost three times as much.

What about pocket money? 

Though it’s definitely not the largest expense involved in bringing up a child, many parents grapple with the question of how much pocket money to give their children. Luckily, the German Youth Institute (DJI) has recommendations on that, conveniently divided into different age groups as the chart below shows.

Chart showing recommended pocket money for kids

Chart showing the recommended pocket money for children at different ages. Source: German Youth Institute

For small children under the age of six, for example, €0.50 to €1 a week is the recommended pocket money, while teenagers aged 14-17 years should get between €26 and €63 a month, depending on their exact age.

By giving children pocket money each month, parents can teach them how to manage money better at an early age. With a fixed monthly amount, they ideally start to understand what they can afford and what they can’t, and also learn to prioritise the things they want or need the most. 

In addition to pocket money, DJI also suggests parents set aside a monthly budget for the child’s other expenses that can be managed by either them or older children. Adjusted for inflation in 2020, this budget includes €30-50 a month for clothes and shoes, €20-30 for eating out, €15-20 for public transport, €10-20 for a phone contract or credit, and €5-10 for stationary and toiletries respectively.

What financial help is there?

Though raising a child may feel financially unmanageable for some, Germany does have a wide range of government benefits available – especially for lower income and single parents.

Parents in Germany can access child benefits (Kindergeld), maternity benefits, parental allowance and tax relief while bringing up a child. From Kindergeld alone, parents receive €219 per child for their first and second child, which goes up to €225 for the third child and €250 for additional children after that. 

A mother and child
A mother looks after her child while working from home. There are many sources of financial help available for single and low-income parents in Germany. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

Single parents also have the option of getting an advance on maintenance payments from the government if the other parent fails to meet their obligations. The Federal Foundation ‘Mother Child’ (Mutter Kind) also offers help to mothers with small incomes in particular. 

The state also provides special support for families with low incomes, such as stipends for education and participation so that the child can take part in cultural and educational activities.

READ ALSO:

Financial support for pupils and students

For 50 years now, the Federal Government has been providing students with financial support for their education.

Regardless of the financial situation of their parents, young people receive BAföG, the so-called Federal Training Assistance Act (Bundesausbildungsförderungsgesetz), during the period of their training and studies.

Since the start of 2020/21 Winter Semester, the maximum BAföG stipend has been €861 euros per month, provided the student doesn’t live with his or her parents and financial assistance from the family is no longer possible.

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