Question 1

What is a child investment account?

Accepted Answer

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.

Question 2

How much is tax-free in a child's account?

Accepted Answer

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.

Question 3

Child's account or an account in the parents' name?

Accepted Answer

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.

Question 4

What happens to the account on the 18th birthday?

Accepted Answer

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.

Question 5

Can the account endanger free family health insurance?

Accepted Answer

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.

Question 6

Does the account count for German student aid (BAföG)?

Accepted Answer

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.

Question 7

How does the Early-Start Pension fit with a child's account?

Accepted Answer

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.

Question 8

What return is realistic for a child's account?

Accepted Answer

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.

Question 9

Are the results guaranteed?

Accepted Answer

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.

Guide: Child Investment Account Calculator

Child Investment Account 2026: How to Invest Money for Your Child

Child Investment Account and Tax: Up to 13,384 € of Returns Tax-Free per Year

Child's Account or Parent's Account? The Honest Comparison

Investing Child Benefit: What 50, 100 or 259 € a Month Grows Into

Child Account Pitfalls: Family Health Insurance, Student Aid and the 18th Birthday

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