FeaturedChild Investment Account 2026: How to Invest Money for Your Child
The complete guide: what a child investment account is, what 50 € a month grows into by 18, how tax works and how the Early-Start Pension fits in.
2026-09-3012 min read
Child Investment Account Calculator
What will your child's savings plan be worth on their 18th birthday? Including tax, the Early-Start Pension and all the pitfalls.
Free & no sign-upNo data sharingTax values as of 2026
Child & period
years
years
Savings plan
€
€
€
%
€
Include Early-Start Pension (planned)10 €/month from the state, ages 6–18, locked until retirement
Return & costs
%
%
Tax comparison
€
€
Account value at age 18 in 2044
€18,675
Paid in: €10,800Growth: €7,875Net in child's account: €18,675
If things turn out differently
Cautious (4 %)
€15,369
Your assumption (6 %)
€18,675
Good (8 %)
€22,815
Tax: child's account vs. parents' account
| Child's account | Parents' account | |
|---|---|---|
| Tax along the way (advance lump sum) | €0 | €493 |
| Tax on sale | €0 | €960 |
| Total tax | €0 | €1,454 |
| Net amount | €18,675 | €17,221 |
The child's account saves €1,454 in tax.
Assumption: the child sells everything in the payout year. Selling over several years uses the allowances more than once and often costs even less tax.
Your savings goal
To reach €25,000 you need €67 per month.
Plus Early-Start Pension (planned)
From 2032 the state is expected to pay 10 € a month into a separate retirement account – €1,440 in total.
Value at age 18 (locked until retirement)
€2,074
Value at age 67
€35,324
Not yet law: first reading in the Bundestag on 25 Sep 2026, planned start 1 Jan 2027.
Things to watch out for
Family health insurance: capital income stays below the limit of 565 € a month.
Student aid (BAföG): about €3,675 is above the 15,000 € asset allowance and would be counted.
From 18 the account belongs to your child alone. Parents no longer have access.
How the account grows
Year by year
| Age | Year | Paid in | Growth | Value |
|---|---|---|---|---|
| 1 | 2027 | €600 | €16 | €616 |
| 2 | 2028 | €1,200 | €67 | €1,267 |
| 5 | 2031 | €3,000 | €457 | €3,457 |
| 10 | 2036 | €6,000 | €2,041 | €8,041 |
| 15 | 2041 | €9,000 | €5,117 | €14,117 |
| 18 | 2044 | €10,800 | €7,875 | €18,675 |
Assumptions of this calculation
Model calculation with a constant return minus ongoing costs, monthly savings (end of month) and yearly money gifts (end of year). Accumulating equity ETF with 30 % partial exemption. Advance lump sum using the 2026 base rate of 3.20 % for all years. Child without own income during the saving phase, 2026 tax scale, no church tax. Early-Start Pension based on the government draft of 12 Aug 2026. All information without guarantee, not investment advice.
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Kaffee ausgeben ☕Calculate the planned Early-Start Pension for your child
Guide: Child Investment Accounts & Saving for Kids
Tax, strategies and pitfalls when saving for your child.
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Calculate now →Frequently Asked Questions
A child investment account (also called a junior account) is a securities account in the child's name. The parents manage it as legal representatives until the 18th birthday. The money in it legally belongs to the child. Usually an ETF savings plan is set up in it, for example on a global equity index.
Every child has their own saver's allowance of 1,000 € per year. If the child has no other income, the basic allowance (2026: 12,348 €) and the 36 € special expenses allowance are added. With a non-assessment certificate from the tax office, capital income of up to 13,384 € per year stays tax-free. For equity ETFs only 70 % of the returns count because of the partial exemption.
A child's account usually saves tax because the child has their own allowances. In return, the money belongs to the child irrevocably: parents may only use it for the child, and from 18 the child decides alone. An account in the parents' name stays flexible, but flat tax applies there once the parents' own allowance is used up. The calculator shows both options side by side.
On reaching the age of majority, the child's account becomes a normal account of the young adult. The parents lose their right of disposal. The child can then use the money freely. Many parents therefore talk early about the purpose of the money, for example training, a driving licence or the first flat.
Yes, if the returns become large. In statutory health insurance, children covered by family insurance may have at most 565 € of total income per month in 2026. Capital income counts after deducting the saver's allowance. Selling a large account in one go can push the child above the limit in the year of sale. The calculator warns you if this could happen.
Yes. BAföG counts the student's own assets. Under the age of 30, 15,000 € are exempt in 2026. Anything above that is counted and reduces the aid. An account in the parents' name, on the other hand, does not count as the child's assets.
The Early-Start Pension is a separate, state-funded retirement account with 10 € a month from age 6 to 18. The money is locked until retirement. It has not been passed yet: the Bundestag debated the draft in first reading on 25 September 2026, the planned start is 1 January 2027. A child's account, by contrast, is freely available. The two complement each other; the calculator shows the Early-Start Pension separately.
Broadly diversified equity ETFs have historically returned around 6 to 8 % a year on average over long periods, before inflation. That is no guarantee: individual years can be clearly negative. The calculator therefore also shows a cautious and a good scenario with 2 percentage points less and more.
No. The calculator is a model calculation with a constant return. It applies the 2026 base rate (3.20 %) for the advance lump sum in every year and does not include church tax. Real prices fluctuate, and tax rules can change. The results are a guide, not investment advice. All information without guarantee.