The best investment for children in 2019: save with shares for children

The best financial investment for children 2019: secure the future of your children with shares!

The average German household pays almost € 150,000 per child up to the age of 18. However, it often only gets really expensive when training or studies begin. It is therefore worthwhile to reduce this cost factor, an early investment for children to plan.

One of the best options for investing in children is stocks or funds. We’ll show you how to save funds and stocks for your kids.

&# 128073; Editor’s recommendation: To buy shares or funds for your children, we recommend comdirect’s Junior Depot.

Investing in children – the main points

  • &# 128504;Saving for children – why?
    Children cost money. Especially when your adolescent children start an apprenticeship or study, the investment for children is worth its weight in gold.
  • &# 128504;Best investment for children
    The easiest way to invest money on the stock exchange for children is with ETFs. These have a very low risk with relatively high returns.
  • &# 128504;I need my own depot for children?
    An extra deposit for children is not absolutely necessary. Most brokers, however, offer so-called Junior Depots, the terms of which are tailored specifically to the investment for children and are provided with numerous discounts.
  • Junior depot comparison

    Most providers have a lot comfortable conditions for junior depots. Because also here different brokers offer different advantages for the investment for children. We have selected the three best brokers for you to invest in children:

    providers order fees Custody fees savings plan particularities To the application


    € 4.90 per trade + 0.25% of the order volume Free with regular deposits ℹ From € 25
    • ✓ € 25 savings plan subsidy
    • ✓ 100% discount on sales charge
    • ✓ Tax allowance up to € 10.005 / child


    € 4.95 + 0.25% commission
      0 €
    From € 25
    • ✓ 7,500 funds with 25-100% fund discount
    • ✓ € 25 savings plan subsidy


    € 2 0 € From € 25
    • ✘ No savings plans

    As of August 2019

    Conclusion depot comparison – investment for children

    In the comparison it becomes clear that the conditions for junior depots are much better than for standard depots for adults.

    The junior depot from comdirect in particular is characterized by its benefits. The increased tax exemption is otherwise not found at any other provider. We therefore recommend comdirect to invest in children.

    You can find more online brokers in our custody account comparison.

    Shares for children – a junior deposit is worthwhile?

    Should you set up your own junior depot for your children? Or you’d better let the money for your children run through your own depot?

    Most brokers have a special offer for children. This is called Junior Depot. Junior depots have additional features that Simplify saving for children should.

    ➜ A junior depot can prove beneficial for you and your children. Therefore, first compare the advantages and disadvantages of children’s deposits.

    Advantages of Junior Depot

    Tax allowance for children

    No risk investments possible

    Discounts for children (e.g. reduced order fees)

    More comfortable conditions for children

    &# 129534; Tip: Anyone who creates a share deposit for children can first of all look at the Tax allowance of € 9,837 / year looking forward. Your child’s total income is not taxed up to this amount.

    Financial investment for children – so you apply for the tax exemption

    In order to really benefit from the maximum tax exemption for investments for children, you must first have one Apply for an exemption. You can do this at the broker where you opened the Junior Depot. Alternatively, you can also retrieve the taxes retrospectively using the next income tax return.

    Another advantage when investing in children are:. reduced order fees compared to a standard depot.

    Furthermore, risky investments in a junior depot are severely limited compared to standard depots. So that will be Risk drastically reduced and you don’t lose large amounts of capital when investing in children.

    Disadvantages of the junior depot

    Less entitlement to Bafög

    If the return is too high: Free child insurance is not possible

    Note that the income from the children’s share account reduces eligibility for grants such as Bafög. If the investment for children generates enough returns, your child may be able to do so Bafög claim completely lost.

    If the income exceeds 5901 € / year, then the child is also obliged to to insure yourself. A free co-insurance through the parents is no longer possible.

    ⚠️ Caution: Avoid withdrawing money from your child’s Junior Depot to your own account. The tax office will then assume that you are using the money for your own purposes. You will then have to pay taxes for this money.

    How to open a junior depot

    Children’s depot opening in 5 steps

    The Opening of a junior depot Funding for children is basically the same as that of a classic deposit. First you decide which broker you want to open your account with. Then fill in the online form for opening the depot.

    Finally, both parents have to verify their identity using Postident. At the post office, you will then also send the opening application and the remaining documents to the broker. The children’s depot is then usable within a few days.

    Additional documents required for the Junior Depot:

    • Copy of the identity card
    • Copy of the child’s birth certificate
    • PostIdent Coupon
    • Child’s identity card (from 16 years)
    • For single parents: copy of proof of sole custody

    Saving for children – what is the best investment strategy?

    Buying shares for children is, in principle, very similar to retirement savings with shares. Here too invest long-term and safely the top principle. Therefore, it is best if you do not make more than 2-4 trades per year.

    You should also look at the Diversify your portfolio respect, think highly of. Avoid buying large amounts of stock from a few or only one company. Instead, choose a handful of promising companies.

    Children’s funds and ETFs

    Good risk diversification with acceptable return prospects, it can take time. In addition, you should be sufficiently familiar with the respective companies and the market.

    "For laypeople who want to save responsibly for the future of their children, ETFs are particularly recommended as a safe investment."

    If this is too much effort, there are funds and ETFs the best choice. These have a large number of different stocks in a fixed ratio. So you no longer have to worry about risk diversification.

    ⚠️ Reading tip: Whether you prefer to invest in ready-made fund packages or realize your investment for children with individual shares, we recommend that you learn more about investing.

    With an MSCI Word ETF, investors have been able to double their start-up capital in the past 10 years © onvista

    The MSCI World, for example, contains stocks from the most important industrial countries from Europe, America, Asia and Australia. The MSCI World has achieved a performance of +97.62% in the last 10 years. A corresponding ETF would almost have that within 10 years Initial capital doubled.

    A particularly extensive selection of MSCI World ETFs can be found at comdirect, for example.

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    Christina Cherry
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