The state supports parents with the so-called child allowance: parents can earn and earn EUR 7,620 per child per year without paying taxes.
Anyone who makes money in some way – for example, by going to work or renting an apartment – has to pay taxes. Certain groups of people do not have to pay taxes for special costs, they receive so-called allowances.
This also applies to women and men with biological and adopted children and – depending on the scope of care – with foster children: You can take 7,620 euros a year without paying taxes. This is the so-called child allowance 2019 including the child allowance. With this, the state wants to ensure that parents have enough money to pay for their children things like food, an apartment, childcare or training.
Daily allowance account for children – an alternative to a savings book
We’ll help you choose the right child benefit account. When it came to saving money for children, the savings book used to be considered the ultimate. But in the meantime, interest rates on the savings book have almost gone bottomless. As an alternative to the savings book, call money is an option. Below we explain what parents should pay attention to if they want to open a child benefit account.
Security with the call money account for children
Gifts for birth, baptism or communion. Christmas gifts from grandparents and other relatives or saved pocket money. There can be a lot of money for the children. But where to put all the money? Parents naturally want a safe form of investment for their children’s savings. That’s why the savings book used to be so popular as an investment for children. But nowadays, a savings book pays almost no interest. That’s why most savers are looking for one Alternative to the savings book. A sensible alternative to the savings book is a Child benefit account, because it offers the same security as a passbook. Because in the event of bankruptcy, the money in the overnight deposit account is secured by the statutory deposit insurance up to a total of EUR 100,000. The statutory deposit guarantee does not only apply to banks in Germany, but to all banks in the euro area. With our comparison calculator, you can choose whether you want to display overnight money offers from banks from all over the Eurozone or limit the search to banks from Germany. The banks from Germany generally offer additional security for overnight money through membership in the deposit guarantee fund of the Federal Association of German Banks. For example, overnight deposits at Consorsbank are secured by the deposit guarantee fund up to a total of EUR 120 million per customer. Therefore, parents do not have to be afraid that their child’s savings will be lost if the bank goes bankrupt. Price losses such as those known from shares, for example, are not possible with a call money investment. The paid-in money is therefore retained in any case.
Daily allowance for children – child allowance comparison
A daily allowance account for children is characterized by no fees and daily availability of the entire savings amount. The bank can lower or raise the interest rate on child benefit depending on the market situation. Daily allowances with an interest guarantee, such as the Renault Bank overnight allowance account for children, are excluded. Here is the return for a guarantee period. More about child benefit at sparkonto.org
Up to € 500 premium until January 31, 2020 with the ETF savings plan OSKAR for children.
The state as a legislator explicitly protects children’s savings investments by prescribing coin-safe savings investments. Share and fund savings plans are not excluded. We recommend spreading the risk with an ETF savings plan for children and not investing in individual stocks. OSKAR is an ETF savings plan for families, recommended by the magazine ELTERN. Read our fact check.
Parental allowance is paid for one or two parents after the birth of a child over a period of just over two years. How the parental allowance is divided between the two parents and within the time can be designed very differently. The amount of the parental benefit is 67% of the net income in the last 12 months before birth.
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What exactly is parental allowance??
Parental allowance is a substitute for the state. It is intended to compensate for a loss of salary after birth due to the care of one’s own children. A parent can receive a parental allowance of at least two and a maximum of 12 months. If the other partner also participates in the care, the parental allowance can be claimed for an additional two months (maximum 14 months). These additional months of parental allowance are also known as partner months. Single parents can receive parental allowance for a maximum of 14 months.
Child allowance 2019: what it is and how high it is
Children cost money – most parents know that too well. That is why in Germany there is an opportunity for people with children to save taxes with the child allowance when filing tax returns. You can find out what the child allowance is, where you can enter the child allowance and how it relates to child benefit here.
What is the child allowance??
The child allowance is one allowance for parents who reduce taxable income. The tax-free allowance means that your gross salary after tax deduction leaves a higher net amount. The tax-free allowance for the child also affects the calculation of the solidarity surcharge and church tax.
Our future belongs to the children. Balancing family and job is one of the requirements of many young couples today. Fathers also want to get actively involved in raising their children. Flexibility is important to parents, even when it comes to financial security. With good planning of the child-rearing phase, state support in the form of parental allowance and ElterngeldPlus can be used optimally.
The topics in detail
Financial security for families
With the aim of providing financial support to young parents in the first few months of their child’s life, the “Law on parental allowance and parental leave” (also known as the Federal Parental Benefit and Parental Leave Act) came into force in 2007. This should give both mothers and fathers the opportunity to take a break from work to organize family life with their offspring. With love and security, time and attention, a sheltered start in life is possible. The active participation of fathers in the upbringing of children is also expressly desired – parental leave of both partners or fathers’ months are therefore welcome. To further promote this, the reform of the Parental Benefits Act 2015 Parental allowance plus introduced. Parental allowance and ElterngeldPlus can be combined as desired – here it is worthwhile to calculate different variants!
Parental allowance application: Which documents do I have to submit??
You will only receive parental allowance on application. In addition to the completed application, the parental allowance office also requires additional documents. You can submit the application and other documents in peace, e.g. put together in maternity leave. You can find out what these are in this article.
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16 federal states – 16 parental allowance applications
Each state has its own application form. In addition, each federal state still has various systems that must be completed. Which these are depends on the individual case. You will find a note at the appropriate places in the main application form.
Parental allowance and ElterngeldPlus: calculate, maximize and apply correctly
Parental allowance is a financial transfer from the state. It gives fathers and mothers the opportunity to combine family and work without losing money. Parents can choose between parental allowance and parental allowance plus or combine both.
Parental allowance: definition
The parental allowance is a temporary compensation payment that is dependent on the net income and is intended to provide financial relief to young parents while starting a family. Fathers and mothers who are not fully employed due to the care of their child or who temporarily completely stop working are entitled to parental benefit. Parental allowance is also available to parents who live separately and single parents.
