Many families in Germany do not fully use the government benefits available to them. Yet there are several family benefits that can save parents thousands of euros every year. Read more.
Germany is one of the countries with the most extensive government support for families.
Some of the most important government benefits for families in Germany include:
✅ Kindergeld (child benefit)
✅ tax allowances for children
✅ education support
✅ student funding (BAföG)
✅ pension advantages for parents
These benefits are designed to ensure that children have good development opportunities regardless of their parents’ income.
However, many families only know part of the system, even though they could save several thousand euros every year.
For expat families in Germany, this is especially relevant. Many international parents are not aware that several of these benefits also apply to non-German families living and working in Germany.
Kindergeld is the best-known government benefit for families in Germany. It is a monthly payment from the state to parents to help cover some of the costs of raising children.
As of 2026, families receive:
259€ per child per month
Kindergeld is usually paid:
until the child turns 18
until the child turns 25 if they are studying or in vocational training
That means:
A family with two children can receive more than 6,000€ per year in direct government support.
Many international families do not realize that they may also be eligible.
In principle, Kindergeld may apply to:
EU citizens living in Germany
employees with a valid residence permit
Blue Card holders
families living in Germany long term
The main requirements are usually:
residence in Germany
tax liability in Germany
For many expat families, Kindergeld in Germany is one of the most important benefits to understand first.
An important point:
Kindergeld can generally be claimed retroactively for up to 6 months. Many families lose thousands of euros simply because they apply too late.
Many parents use Kindergeld directly for everyday expenses. Another option is to invest part of it for the long term.
For example:
If 100€ of Kindergeld per month is invested over 18 years, it can grow into substantial capital for a child.
You can read more about this in our article:
ETF Savings Plan for Children: Long-Term Wealth in Germany
Many parents underestimate how much government support for families in Germany can actually add up to.
Example for a family with two children:
Kindergeld: more than 6,000€ per year
Tax relief through child tax allowances
Pension credits through child-raising time
Education and training support
Over the full childhood of a child, these government benefits can easily add up to tens of thousands of euros. That is exactly why it makes sense to include family benefits as part of your long-term financial planning.
In addition to Kindergeld, Germany also offers the Kinderfreibetrag (child tax allowance). This allows part of the parents’ income to remain tax-free.
The state recognizes that parents carry additional financial responsibility and reduces their tax burden accordingly.
As of 2026, the child tax allowance is:
9,312€ per parent
18,624€ for married couples
This amount is considered in the tax assessment.
The tax office automatically checks whether Kindergeld or the child tax allowance is more beneficial for the family.
Again, this is not only relevant for German citizens.
In principle, it applies to families who:
are taxable in Germany
have a child
Many families use this tax relief as an opportunity to invest more for their children.
You can read more about the tax side of child investing here:
Taxes on Child Investments in Germany
Support for school and extracurricular activities. The so-called Bildungs- und Teilhabepaket supports families with low or medium income. The goal is to ensure that children have equal opportunities in education and leisure activities.
The package can cover costs such as:
school supplies (for example books, school bags or equipment)
school trips
school meals
tutoring
sports club memberships
For school supplies alone, families can receive more than 170€ per child per year.
The education and participation package mainly applies to families receiving certain social benefits, such as:
Bürgergeld
Wohngeld
Kinderzuschlag
International families may also be eligible if they live in Germany and meet the relevant criteria. For expat families, this is one of the most overlooked family benefits in Germany, especially because the application process depends on the local authority.
BAföG is a government support program for pupils and students in Germany. Many families assume that BAföG only applies to German citizens.
That is not correct.
Children of expats may also be eligible for BAföG if:
the family lives in Germany on a long-term basis
a valid residence status exists
the educational requirements are met
BAföG can become an important part of funding education or university studies.
When BAföG is assessed, the child’s assets may play a role. However, certain structures may help ensure that assets are not counted immediately in the same way.
That is why early planning matters.
For many international families, this is one of the most important strategic reasons to think about child investment structure in Germany early.
Another important government benefit does not directly affect the child - but the parents. The so-called Kindererziehungszeit gives parents pension credits for the first years of raising a child.
This means:
The German state treats this period as if pension contributions had continued to be paid into the statutory pension system.
Currently, child-raising time is worth approximately:
122€ of additional pension per month per child
Over an entire retirement period, this can mean more than 30,000€ in additional pension value per child. Many families do not know that these periods must be actively confirmed and recorded.
You can read more in our article:
How to Claim Child-Raising Pension Credits in Germany
Although Germany offers many family-related benefits, a lot of parents do not use them fully. This is especially true for international families.
Common reasons include:
The German system of family benefits and government support is complex, but it also offers many opportunities.
Families who inform themselves early can:
fully use available government support
secure important financial advantages
build long-term wealth for their children
For this reason, every family with children should have a good overview of the most relevant family benefits in Germany, so that no important support is missed.
Government support can relieve financial pressure for families. But it does not replace long-term planning.
For many families, the following also matter:
wealth building for children
tax structure
family protection
household planning
That is why many families also think about topics such as household optimization.
Read more here:
Household Optimization: How Families in Germany Can Save up to 900€ per Year
There are several types of government support for families in Germany. The most important include:
Kindergeld
child tax allowance
Kinderzuschlag
education and participation package
BAföG for education or university
child-raising pension credits
These benefits are intended to reduce financial pressure for families and improve opportunities for children.
Most benefits are applied for through different public authorities:
Kindergeld → Family Benefits Office (Familienkasse) of the Federal Employment Agency
Kinderzuschlag → also through the Familienkasse
Education and Participation Package → via the Jobcenter, social welfare office or local town hall
BAföG → through the relevant BAföG office at the university or municipality
Child-raising time → through the German Pension Insurance
Depending on the federal state and city, the exact process may vary slightly.
Yes. Many government benefits also apply to international families.
Typical requirements include:
residence in Germany
tax liability in Germany
valid residence permit or EU freedom of movement status
This means that expats with a Blue Card or residence permit can often receive Kindergeld and other family-related benefits.
For many families, Kindergeld and child-raising pension credits are the financially most valuable government benefits.
Example:
259€ Kindergeld per month
additional pension credits through child-raising time
Over many years, these benefits together can be worth tens of thousands of euros.
Many families only discover through a structured review that the real issue is not individual contracts, but the interaction of their overall financial structure.
Especially if you:
are raising children in Germany
want to use government benefits efficiently
want to invest long term for your child
already have several contracts or savings plans
an independent review can create clarity.
Learn more now!
