The dream of having one's own family motivates many people to have children. In advance, however, you should be well informed about the upcoming costs.
Children are the highest happiness on earth: True to this motto, many couples can hardly wait to start their own family. However, this decision comes with a lot of financial obligations. From buying baby equipment to childcare to education costs, costs can skyrocket. But how deep do parents actually have to dig into their pockets for their child?
Parents have to reckon with these expenses
One thing is clear: children are not cheap. According to the Federal Statistical Office, parents spend an average of around 18,148 euros per child up to the age of 000. With this hefty sum, you could even afford a condominium. In the first few months, a lot of baby things such as a bed, stroller and changing table are needed, for which parents spend an average of 2,976 euros. In addition to the equipment, there are also expenses for diapers, food, clothing and toys. On average, a child costs 587 euros per month for the first six years. Costs for baby care are not yet included.
+Food, drink, clothing, toys and more – up to the age of 18, the offspring costs an average of 148,000 euros.
© Svetlana Karner/Imago
After the first six years, children will only become more expensive. At school age, the costs rise to around 604 euros per month, after all, learning materials and money for excursions are now needed. The initial equipment for the school alone costs around 240 euros. Of course, satchels, pencil cases and books do not pay for themselves.
The older the child, the more expensive
Puberty usually leads to a particularly challenging time for parents – also from a financial point of view. Children between the ages of twelve and eighteen cost an average of 700 euros per month because they have more needs than a toddler. Now there are expenses for mobile phones, computers, school trips and hobbies. Most parents start giving their children pocket money during this time. As teenagers grow, they need more food and clothing – including expensive branded clothes. Older teens also need money for their driver's license. On average, 1,700 euros are spent from the first driving lesson to passing the exam (often more, depending on the duration and federal state).
The figures from the Federal Statistical Office refer exclusively to consumption. Costs such as insurance or energy were not taken into account. Parents-to-be should also note that they may have to pay for their child's tuition or housing costs at a later age.
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Money-saving tips for parents
The good news is that there are many ways to save on acquisition costs. Especially when the children are still small, baby things such as strollers or high chairs can be bought used, which significantly reduces costs. Many things such as clothes and furniture can be borrowed from family and friends. Since children grow out of clothes very quickly, it is a good idea to pass things on to acquaintances.
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If you want a large family, you can breathe a sigh of relief: Since many acquisition costs are eliminated, the second or third child is significantly cheaper. After all, baby cots, rompers and the like can easily be used again. The average cost per capita therefore decreases as more children live in the household.
Parents can take advantage of these government financial injections
The high costs that parents incur by their children are offset by some government benefits. So couples don't have to worry about being financially alone. After all, it is not for nothing that Germany is a welfare state. One of the benefits that parents support financially is child benefit. This is paid up to the age of 18, but can be extended beyond that under certain circumstances. Currently, it amounts to 250 euros per child per month (as of 2023).
Parental allowance, in turn, compensates for the loss of earnings if parents take over care after the birth of their child and take a career break. The amount depends on the respective earnings before the birth. In addition, there are other state subsidies such as maternity allowance, housing allowance for families and child allowance. Thanks to the child allowance, high tax expenses are also reduced and the time of raising children can also bring a bonus to pensions.
State aid can reduce the cost of children by almost half. In any case, parents should inform themselves well about upcoming expenses beforehand. It is a good idea to carry out detailed financial planning. A realistic assessment of expenses and income can prepare parents for the financial burden and save them from falling into the debt trap.
Category list image: © Svetlana Karner/Imago
