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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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LIVING IN GERMANY

Living in Germany: Battles over Bürgergeld, rolling the ‘die’ and carnival lingo

From the push to reform long-term unemployment benefits to the lingo you need to know as Carnival season kicks off, we look at the highlights of life in Germany.

Living in Germany: Battles over Bürgergeld, rolling the 'die' and carnival lingo

Deadlock looms as debates over Bürgergeld heat up 

Following a vote in the Bundestag on Thursday, the government’s planned reforms to long-term unemployment benefits are one step closer to becoming reality. Replacing the controversial Hartz IV system, Bürgergeld (or Citizens’ Allowance) is intended to be a fair bit easier on claimants.

Not only will the monthly payment be raised from €449 to €502, but jobseekers will also be given a grace period of two years before checks are carried out on the size of their apartment or savings of up to €60,000. The system will also move away from sanctions with a so-called “trust period” of six months, during which benefits won’t be docked at all – except in very extreme circumstances. 

Speaking in parliament, Labour Minister Hubertus Heil (SPD) said the spirit of the new system was “solidarity, trust and encouragement” and praised the fact that Bürgergeld would help people get back into the job market with funding for training and education. But not everyone is happy about the changes. In particular, politicians from the opposition CDU/CSU parties have responded with outrage at the move away from sanctions.

CDU leader Friedrich Merz has even branded the system a step towards “unconditional Basic Income” and argued that nobody will be incentivised to return to work. 

The CDU and CSU are now threatening to block the Bürgergeld legislation when it’s put to a vote in the Bundesrat on Monday. With the conservatives controlling most of the federal states – and thus most of the seats in the upper house – things could get interesting. Be sure to keep an eye out for our coverage in the coming weeks to see how the saga unfolds. 

Tweet of the week

When you first start learning German, picking the right article to use can truly be a roll of the “die” – so we’re entirely on board with this slightly unconventional way to decide whether you’re in a “der”, “die”, or “das” situation. (Warning: this may not improve your German.) 

Where is this?

Photo: picture alliance/dpa | Boris Roessler

Residents of Frankfurt am Main and the surrounding area will no doubt recognise this as the charming town of Kronberg, which is nestled at the foot of the Taunus mountains.

This atmospheric scene was snapped on Friday morning, when a drop in temperatures saw Kronberg and surrounding forests shrouded in autumnal fog.

After a decidedly warm start to November, the mercury is expected to drop into single digits over the weekend. 

Did you know?

November 11th marked the start of carnival season in Germany. But did you know that there’s a whole set of lingo to go along with the tradition? And it all depends on where you are. First of all, the celebration isn’t called the same thing everywhere. In the Rhineland, it’s usually called Karneval, while people in Bavaria or Saxony tend to call it Fasching. Those in Hesse and Saarland usually call it Fastnacht. 

And depending on where you are, there are different things to shout. The ‘fools call’ you’ll hear in Cologne is “Alaaf!” If you move away from Cologne, you’ll hear “Helau!” This is the traditional cry in the carnival strongholds of Düsseldorf and Mainz, as well as in some other German cities.

In the Swabian-Alemannic language region in the southwest of the country, people yell “Narri-Narro”, which means “I’m a fool, you’re a fool”. In Saarland at the French border, they shout “Alleh hopp!”, which is said to originate from the French language. 

Lastly, if someone offers you a Fastnachtskrapfe, say yes because it’s a jelly-filled carnival donut. And if you’re offered a Bützchen? It’s your call, but know that it’s a little kiss given to strangers!

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