Children's savings: the two questions that decide the outcome
- What do you save in? — the ETF
- In which form? — the policy
Most families ask the product question first: which savings plan, which provider, which fund? That is the third question. Two others come before it, they decide the outcome — and they are best answered in this order.
What is the best way to save for my child?
In two steps, and the order matters. First: what do you save in? Over 18 years you need an investment that runs without daily attention, is broadly diversified and is available in part amounts on the day — a globally diversified ETF meets that. Second: in which form? If the contract is in the child’s name, full control passes over automatically on their 18th birthday. If it is in the parents’ name, they choose the moment themselves.
The product question — which provider, which tariff — is the third. Ask it first and you end up comparing numbers without knowing what you are looking for.
Past performance is not a reliable indicator of future results. Investments involve risk.
Which two questions do you have to answer?
What do you save in? Savings account, shares or an ETF
Why individual shares, Bitcoin and property do not suit a child's savings — and what qualifies a broadly diversified ETF for 18 years. With sources. Why an ETF for your child
In which form? Why the policy keeps you in control
Control over the handover date, tax-free switching, full flexibility and portability abroad — the four reasons for the policy. Why the ETF policyWhy does the order decide the outcome?
18 years is an unusual brief
Most investments are built for adults with a flexible horizon. Saving for a child has a fixed date: an 18th birthday does not move, and neither does the start of university. At the same time the whole thing should run by itself for 18 years — nobody has time for quarterly reports on the side.
That combination — a fixed date plus no attention — rules out most alternatives. Not because they are bad, but because they are built for a different job.
And the wrapper decides too
Same ETFs, same savings rate, same term — depending on whose name the contract is in, the outcome differs. It is not only about tax, but above all about a question many parents ask late: who may access the money, and from when?
What we do not do here
You will not find a promised return or a "best provider" on these pages. Which provider comes out ahead for a family emerges live in the strategy call — with your data in the comparison tool, shared on screen. What we do here is answer the two questions before that, so you can read the comparison yourself afterwards.
Common questions about saving for children
How much should I save each month for my child?
The honest answer: as much as you can sustain for 18 years. A rate that gets cancelled after two years is more expensive than a smaller one that keeps running — costs fall at the front, returns at the back.
For scale: 100 euros a month adds up to 21,600 euros paid in over 18 years. Most families start between 50 and 150 euros and adjust later. More important than the amount is that it stays adjustable.
When should you start saving for a child?
As early as possible — because of the length, not the return. Over periods from roughly twelve years on, there was historically no starting point in the global equity market that ended in a loss (Deutsches Aktieninstitut, return triangle). Start at birth and you have that length for certain.
Whose name should the savings plan be in?
This is the question with the largest consequences — and it is usually asked last. If the contract is in the child’s name, full control passes over automatically on their 18th birthday, whether the moment fits or not. If it is in yours, you decide when to hand over.
Practical points follow: assets held in the child’s own name can count against free family health insurance cover or later study support. The detail is on Why the policy.
How is saving for a child different from retirement saving?
The date and the availability. Retirement saving targets a point 30 to 40 years out and may be immobile in between. Saving for a child has a fixed date 18 years out, and often only part of the money is needed — for a driving licence, a semester abroad, a first flat. Being able to take out part of it is therefore not a convenience but a condition.
Let us run it with your numbers
In the clarity call we understand your situation — your child’s age, your savings rate, your horizon. Around 45 minutes, free and without obligation, in English. If it turns out afterwards that you do not need us, that is a good outcome.
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