Saving for a Grandchild or Godchild: a Gift That Lasts

In short

As a grandparent or godparent, you can give something lasting by saving for the child regularly or in one go. The key is to coordinate with the parents so everything works together.

You want to give your grandchild or godchild something that lasts longer than the next toy. As a grandparent or godparent, you are in a particularly good position to do just that.

Parents are caught up in day-to-day life and have to juggle many things at once. You, on the other hand, can approach this one topic in peace, and that is exactly what makes your contribution so valuable.

Why you can make a real difference

Two things work in your favor: time and calm. There are many years ahead until the child is grown, and you do not have to stretch yourself to your limits. Whether a small regular contribution or the annual occasions like birthdays and Christmas, over such a long stretch it all adds up. The Verbraucherzentrale also offers a summary of how to save wisely for children and grandchildren.

Coordinate with the parents

Before you get started, have a quick word with the parents. That way you avoid two savings plans running in parallel without coordination, and you can agree on what the money is meant for later. Several well-meaning individual efforts become a shared plan that benefits the child the most.

The most meaningful gift from grandparents is often not the biggest one, but the one the child still has something to show for at 18.

Whose name is it in?

The question applies to you too: the child's name, the parents' name, or your own? Each option has its own pros and cons when it comes to access, taxes, and availability. We have broken that down in a separate article: Money in the child's name or the parent's name?

Use special occasions instead of one more toy

Birthdays, Christmas, baptism, first day of school: you can use these occasions to put something aside for later instead of filling the room with more things. Many grandparents and godparents find this more meaningful, and it takes the pressure off having to find the right gift every time.

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Frequently asked questions

Can I save for the child as a grandparent or godparent?

Yes, that works well and is very valuable for many families. The key is to coordinate with the parents early on and clarify whose name the savings will be in.

How do I coordinate with the parents?

A short conversation is enough: who puts what aside, in whose name, and what is the money meant for. That way nothing runs in duplicate and everyone is working toward the same goal.

Whose name should the money be in?

The child's name, the parents' name, or your own, each option has its pros and cons when it comes to access, taxes, and availability. More on that in the article "Money in the child's name or the parent's name?".

Is it still worth starting late?

Yes, even then. Even a few years plus the annual gift occasions add up to something over time. Starting is better than waiting for the perfect moment.

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.