It is probably one of the most expensive purchases in most parents' lives: a child. Parents spend around 174,096 euros on their first child up to their 18th birthday. This is shown by figures from the Federal Statistical Office from 2018 - expenditure has probably increased even further in recent years due to inflation. And that's not all: Of course, there are also indirect costs - for example, the loss of income because you work less to look after your children instead.
But the good news is that parents don't have to shoulder these costs alone. The state supports families with around 150 different benefits. “This enormously long list of 150 benefits that the Federal Ministry for Family Affairs put together a few years ago really contains all state benefits that affect children in some way,” explains Martin Werding, professor at the University of Bochum, in the current video from the ARD financial format 50k. In addition to the classic family benefits, this list also includes the entire education policy and, for example, additional benefits for low-income families.
Not all services are received
The fact that there is so much support for families is also because the state needs families. Because without young talent, there will be a lack of future skilled workers for the economy. This means that the social systems, such as pensions and care, are also starting to falter because they are financed by contributions. So having children is in the interests of the state - and that's why the state supports starting a family.
But these state support services are not always accessed, explains expert Werding. There are different reasons for this: "Partly because the families don't know exactly that they are entitled or also because the application process is complicated. Sometimes you have to apply for a thousand things individually. Sometimes families just don't do that."
Support before birth
The problem is: Even the well-known, classic services have some pitfalls. But let's start from the beginning: Maternity protection for female employees starts before the birth. Normally, a pregnant employee stops working six weeks before the birth and eight weeks afterwards. Maternity leave applies during this time. Depending on what job you do and how the expectant mother is doing during pregnancy, there may be a ban on employment much earlier. In addition, special protection against dismissal applies from the beginning of pregnancy.
During maternity leave there are so-called maternity benefits. This includes, for example, maternity benefit. Depending on how you are insured, this comes either directly from your health insurance company or from the Federal Office for Social Security. Those with statutory health insurance receive a maximum of 13 euros per day. Women with private or family insurance receive a one-off sum of a maximum of 210 euros. Anyone who is legally insured submits the application to their own health insurance company - private and family insured people submit the application directly to the Social Security Office.
If an employee earns an average of more than 13 euros a day, there is also a subsidy from the employer. This compensates for the loss of earnings and must be applied for directly from the employer. Normally, you end up with your usual net salary again - roughly as if you were continuing to work.
Child benefit or child allowance?
Child benefit is also available from birth. This is paid regardless of how much you earn. Since January of this year, families have received 259 euros per child per month. For high earners, the so-called child allowance may be more financially advantageous than child benefit. This allowance is a tax advantage that means parents have to pay less income tax for their child. The tax office automatically checks this with the tax return - parents do not have to submit an application for this.
Parental allowance is much more complicated: a parent receives parental allowance if they stay at home with the child after the birth - although this depends on their income. If your parents' taxable income exceeds 175,000 euros per year, you will not receive parental allowance. The application for this is submitted to the local parental allowance office shortly after the birth. However, even this application can be quite nerve-wracking: "After the introduction, so many subcategories have been created that in my opinion it is actually no longer particularly clear," says Professor Werding in the current 50k video.
Changes from 2027
When it comes to parental allowance, it depends on which variant you apply for - depending on the amount, the amount of money varies and the length of time varies. With basic parental allowance you get 65 percent of the lost net income, at least 300 euros and a maximum of 1,800 euros per month. Parents who previously had no income will also receive the 300 euros. And if there are twins or other small children in the house, there are surcharges. Basic parental allowance is only available in the first 14 months of the child's life; each parent must apply for at least two months.
Parental Allowance Plus works in a similar way, but is valid for twice as long - but you only get half the money per month. So you stretch the same amount over a longer period of time. And with the partnership bonus, parents who both work part-time can receive two to four months of additional Parental Allowance Plus at the same time. However, you can also get more out of it in other areas: For example, changing from tax class five to tax class three can result in several hundred euros more parental allowance for one parent. But this only works for married couples. And you have to change early enough - namely seven months before the birth.
There will be some changes in the future, especially when it comes to parental allowance: from the end of 2027, for example, basic parental allowance will only be possible for twelve months instead of 14 months. In addition, each parent must then take at least three months. However, the maximum amount should increase slightly: instead of 1,800 euros, there should be a maximum of 1,900 euros.
Forgotten achievements
In addition to the classic benefits, there are also some that are repeatedly forgotten, such as the so-called education and participation package. “These benefits essentially have to be applied for individually - such as support for school trips, but also for regular club memberships, music lessons and the like,” explains expert Werding. However, this is exactly a problem - because in order for the benefits to reach the children, they have to be applied for individually.
“And because it’s so complicated, families probably don’t even care about it,” criticizes Werding. Numerous families would be entitled - not only families who receive social assistance, but also families who receive housing benefit.
Other state support benefits include child allowances, child sickness benefits and maintenance advances - but all of these must also be applied for. “That means you go to different authorities and sometimes give the same information all the time. And the whole thing happens relatively often because such benefits are only ever granted for a limited time,” says Martin Werding in the current 50k video.
