Investor Academy How much money children cost
Children enrich life. You shouldn’t make a cost-benefit calculation for them.
Frankfurt There are numbers like this, the parents-to-be immediately get worried after the first ultrasound scan on the Forehead. A child up to the age of 18 costs 120,000 euros, i.e. around 550 euros per month. This is how the Federal Statistical Office calculated it .
Now children are by no means something for which a cost-benefit calculation can be drawn up. They enrich life, the relationship, personal development. And they inevitably lead to a sudden change of all previous processes, habits and hobbies – especially with the first child. Cinema, pub or Saturday on the football pitch immediately change from the usual ritual to an individual event connected with extensive planning.
The break in familiar habits is particularly great with the first child. In addition, there are often existential fears, as expenditure increases, while revenues decrease significantly. A list of the previous living costs and the corresponding income in the time before the child and a similar fictitious list for the time with the offspring helps to assess the new living conditions accordingly and then make plans for a possible return to work.
There are many government grants for children, but the details are so complex that advice is often required from the relevant agencies to keep an eye on things as a layperson. This applies in particular to the child-raising allowance created this year.
Too long-term, too low return are the typical arguments of consumer advocates when it comes to this form of insurance. It is obvious that parents and / or grandparents also want to save something for the offspring in some form. A savings contract or fund savings plan would also be an alternative. What speaks for the training insurance is that it will continue to be used over the term of the contract if the contract holder, such as parents or grandparents, is no longer alive.
Children under the age of seven are incapable of tort for the legislature. In road traffic, this limit even goes up to the age of ten. From a legal perspective, parents would not have to pay for the damage to their children at this age. As a rule, however, they feel morally obliged to do so, as a lot happens in their personal surroundings. Experts therefore recommend extending family liability coverage in order to be prepared for such damage and at the same time to maintain peace with friends, acquaintances and relatives. This is often possible without additional costs.
In the first euphoria, parents-to-be will put that away. At the moment, the question of what the initial equipment from the stroller to the bed to the changing table costs is much more important anyway. The popular opinion that you can invest a monthly salary for this is certainly not out of thin air. It gets even more expensive if the apartment is not enough and the two-seater convertible has to give way to a family-friendly van or station wagon. Who is buying a family car on suspicion??
When it comes to basic purchases for the next generation, the financial outlay remains manageable. However, the mix of dwindling income – usually for women – and their declining career prospects are much more worrying for parents-to-be. Added to this are rising expenses. The EUR 184 child benefit per month that goes against this should at best be understood as a small acknowledgment.
The bill with love: marry and save taxes
To counteract this and also because fewer and fewer children were born in Germany, politics introduced parental allowance five years ago. According to a World Bank study in 2009, the figure was 1.36 children per woman. In Europe, only Portugal was worse with 1.32 children per woman. The first successes have been apparent since then. "Young people want to work and have children, so let’s remove obstacles," said Minister Ursula von der Leyen at the time.
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24 comments on "Investor Academy: How much money children cost"
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100,000 EUR up to the age of 18 is already a lot. But it gets really expensive when the children start studying !
Nowadays you need two salaries so that you can pay your child a reasonable education.
Lots of good comments on an average and populist article. The economy has been popularized simply and linearly for over 70 years: Ceteris paribus! Just do not represent relationships. Greetings from the financial crisis.
One spends money. Hey, someone else deserves it, sometimes without anyone spending anything – even if it should be DINKs (doubles income no kids); this is called economy and finally there is this wonderful and almost incomprehensible consumer group of teens (music? fashion?). These billions? "negligible"!
Okay, a comprehensive view is for textbooks and rarely found there.
Light consumption obviously also applies to a newspaper and its articles. But it has to be this?
It is probably true that a couple who want to have children and have an husband’s income of 500,000 euros a year do not need state support nor must they remarkably limit their previous standard of living when the child is there. There is also something like that, it shouldn’t be the rule.
A couple with an income of approx. 100,000 euros / a, which lives in one of the most expensive cities in Germany and where the employer the wife has no understanding whatsoever of a desire to have children (reportedly this should not be so rare, even with well-meaning employers in public).
In this case, a necessary adjustment of the couple to a life with the child would be equivalent to changing the place of residence and the job of the husband, because the rent alone with more than 30% of the gross income burdens the budget, an additional 5% for a crèche place: from what are then, in addition to a 50% share of the tax and the increased cost of living, again the necessary insurance, in particular the costs of additional pensions and expenses for an emergency reserve, which are becoming ever higher with the fall of state pensions? (Not to mention the necessary nuggets of gold under the bed, next to a tenement house as an additional income by fleeing to the real assets.)
No, a nation of happy, unencumbered child lovers is not enough here (also in other places of residence). Anyone who deludes himself is a prankster.
We have not drawn up a cost-benefit calculation for our two children and whoever does not do so is human. The lack of funding in business and politics is indisputable, vdL, Schröder and Co obviously cannot change that. We already receive the receipt for the inactivity of politics with a demographic change, which can also weaken the economy.
Opening an account of the financial burden on children means opening a whole barrel.
The child benefit is just a drop in the bucket, which is very often spent on looking after children in state custodians. Otherwise, parents seem to be the nation’s milking machines. It starts with higher costs for (sometimes bad) tenancies, goes beyond expensive travel options etc. Even the state school system would be based on the many parents"donate" and parenting initiatives don’t survive. These so called "Tax relief" like child allowance are a Joke and don’t even deserve to be mentioned.
I was also able to experience that in many institutions that have children, admission prices are even higher than those for adults.
Most Germans also feel disturbed by children. The lack of willingness to help, especially in public transport, is choking.
Child-raising allowance may help for the first year, but who wants to voluntarily take their child to daycare after one year if they can even get a place.
The entire value system of our society has changed. Children are perceived as appendages that "housewife" and their achievements were degraded. Today you are only worth something if you have a great job, a great car, always make exciting trips and if possible only bind yourself in phases. So you become interchangeable.
Children cannot be exchanged. You are special.
And while some of the childless commentators in old age crouch and mold alone in front of the telly, the parents will sit with their loved ones and tell their children / grandchildren about the time when they were young.
The love between parents and children is worth more than a great car, great trips, great facilities .
In relation to yourself, you are certainly right!
One should not immediately think that there are so many childless people because they are afraid of the costs. I, for example. am childless because I don’t want to have children in this ruined world. How unscrupulous must a person be who hands his children over to Merkel as taxpayer cattle? The earth also does well without people.
If a child costs € 120,000 in 18 years, it is relatively cheap. If you compare how much it costs 18 years to drive a reasonably current mid-range car.
" Our ideas and ideals mostly go to the grave with us, regardless of whether you leave children behind or not. in the end we just disappear and nobody really cares . "
Since you are apparently childless, this is true for you!
With a large family for generations, I know very well that it will NOT apply to me.
You are a poor gnome and take refuge in white lies!
Which HB spinner wants to offer parents a life insurance policy, brazenly called training insurance? You’re probably not ticking properly!
And what is the ramblings about the special liability insurance? Each standard tariff fully covers the normal risks for children!
If you want to open a thin-board journalist, then read the Ifo Institute study from 2005: Each child transfers almost € 80,000 to childless people through social security! State support looks like this in reality: childless people are subsidized by families.
In addition, you mumble about larger housing and parental allowance. But you forget the decisive factor: a full salary is lost for a long, long time. This is not offset by all of the funding.
PS: I don’t open these bills for my children. But if you already do this HB thin board drill, then you should maybe ask someone who has children.
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