There is no dedicated government program for children's savings where you simply pay in and receive a top-up. What does exist is tied to the parents (Riester, company savings benefits) or comes as tax advantages for the child. The biggest lever remains an early, regular start.
Many parents wonder whether the government contributes something when you save for your child, the way it does with Riester retirement savings or company savings benefits (vermögenswirksame Leistungen). The short answer is: not directly. The longer answer is worth reading, because a few programs do touch on the topic.
There is no dedicated program for children's savings
Unlike retirement savings for adults, there is no product where you pay in for your child and automatically receive an allowance. Waiting for one often delays the start unnecessarily. The real advantage lies elsewhere: in the time that works for your child.
The most reliable support when saving for your child is time, and you can only get it by starting early.
What does exist is tied to the parents
Two government programs affect families, but strictly speaking they support the parents rather than the child's money:
- Riester child allowance (Kinderzulage): If you have your own Riester contract, you receive a child allowance of 300 euros per year per child (for children born in 2008 or later, as long as you receive child benefit). This strengthens your own retirement savings, not your child's.
- Company savings benefits (vermögenswirksame Leistungen) and employee savings allowance: These are tied to employment. They are not relevant for your young child, but become relevant once they later start an apprenticeship or job and receive company savings benefits from their employer.
Child benefit is not a savings subsidy, but it is a lever
Child benefit (Kindergeld) is a general family payment, not a savings product. You can, however, use it deliberately: even a small, fixed portion set aside every month will build a meaningful foundation over the years. That is not a subsidy in the strict sense, but it is a simple way to start without needing extra money.
The real advantage: your child's tax allowances
What many people confuse with a subsidy are the tax advantages. Your child has their own annual savings allowance (Sparerpauschbetrag) of 1,000 euros, and with low income a non-assessment certificate (Nichtveranlagungsbescheinigung) can apply on top of that. Returns often stay tax-free as a result. That is not a cash top-up, but in the end it is real money. How exactly this works is explained in Is Saving for Your Child Tax-Deductible?
And your own retirement?
One benefit many people overlook concerns you directly: the pension system credits child-rearing periods that increase your future pension. They only land in your account if you apply for them, though. More on this in Child-Rearing Periods for Your Pension: the V0800 Application.
What this means for you
Do not wait for a program that does not exist in that form. The biggest and most reliable lever is an early start with an amount you can keep going. If one of the programs mentioned fits your situation, we can simply fold it into the conversation together.
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Request a free first consultationFrequently asked questions
Is there government support specifically for saving for children?
Do I get a Riester child allowance for my child?
Can I use child benefit for savings?
Are my child's returns tax-free?
This article is for general information and educational purposes only. It does not constitute tax or legal advice, and no individual recommendation is made. Which path fits your family is something we work out together in a personal conversation, and for tax questions, together with a tax advisor.