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Saving for Education, College, or a Head Start

By Mallik Godjé Issa · Reading time about 4 minutes

In short

With a concrete goal in mind, such as a driver's license, vocational training, or a first apartment, saving feels easier. You work backward from the goal to find a monthly rate that fits you.

Why are you saving for your child? The question sounds trivial, but it makes saving noticeably easier. A concrete goal gives the whole thing a direction and a scale.

"Just setting something aside" often fades into nothing. Once you have a picture in mind, say the first driver's license or the first apartment, a vague intention becomes a tangible plan.

Typical goals and rough figures

To give you a sense of the numbers, here are a few rough ballparks. These are not fixed amounts, just reference points:

From goal to savings rate

The rough figures help you derive your savings rate without any assumption about growth, just by dividing: if around 5,000 euros should be available in 18 years for a driver's license, that comes to just over 23 euros a month in pure contributions. With less time, the rate goes up accordingly. That way you can quickly see what is realistic.

A goal turns "I should start saving" into "I set aside X each month for Y." That is exactly the step most people skip.

Stay flexible, goals change

At age three, nobody knows whether the child will become a student, a skilled tradesperson, or a world traveler. A goal helps at the start but does not have to last forever. More important than the exact goal is that something builds up that your child can use freely later.

What goal fits your family?

With the Family Compass, four short questions give you a calm overview. No signup, no contract, results immediately.

Start the Family Compass

Frequently asked questions

What should I save for when saving for my child?
Common goals include a driver's license, vocational training or college, a first apartment, or a free head start at 18. A concrete goal helps you gauge the right scale and find a savings rate that fits.
How much does a driver's license cost today, roughly?
Depending on the region and driving school, a car driver's license is roughly around 2,500 to 3,500 euros. That is a ballpark figure, not a fixed number.
How do I work from a goal to a monthly rate?
Very roughly: target amount divided by the months until then. If around 5,000 euros should be available in 18 years, that comes to just over 23 euros a month in pure contributions. Over a shorter timeframe, the rate goes up.
What if the goal changes later?
That is completely normal and not a problem. A goal helps at the start but does not have to be set in stone. What matters most is that something builds up that can be used freely later.

This article is for general information and educational purposes only. It does not constitute individual advice, and no statements are made about future performance. Which path fits your family is something we work out together in a personal conversation.

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