Education Planning: Cleverly Set the Financial Course for Your Child’s Future
19 Jun 2025
9
Minutes
Katrin Straub
Managing Director at nextsure
A good education is often associated with high costs that can exceed the budgets of many families. With a well-planned education savings plan, you can financially secure your child's professional future. Find out how you can set the course for tomorrow today.
The topic in brief and concise terms
Early educational provision, ideally from the birth of the child, optimally utilises the compound interest effect and reduces the monthly burden.
Calculate the anticipated education costs realistically and compare different saving options such as education insurance, ETF savings plans, and bank savings plans in terms of returns, costs, flexibility, and security.
Include risk coverage in case of the provider's death or inability to work, to ensure the savings goal is achieved even in serious situations.
Overview of Educational Provision: The Key Facts
The education provision is intended to create the financial foundation for your child’s education or studies. The costs can be considerable; according to the German Student Union, studying often costs over 800 euros per month. Early planning is therefore crucial. Many parents underestimate the total costs of a multi-year education. There are various ways to accumulate capital for this purpose, ranging from traditional savings products to specialized insurance solutions. Choosing the right strategy depends on your risk tolerance and financial capabilities. An early education provision is the key.
State subsidies can complement private provisions. These include, for example, child benefits, which can be paid until the age of 25 if the child is in education. Vocational training allowance (BAB) or BAföG are also potential supports, with eligibility depending on various factors. These state aids often cover only part of the costs. Therefore, private educational provision is indispensable for many families to avoid financial shortfalls. Ideally, planning should begin when the child is still young, to benefit from compound interest over many years.
Practical Guide: Realistically Calculate Training Costs and Define Savings Goals
To find the right education savings plan, making a realistic calculation of future costs is the first step. A degree, including living expenses, can quickly consume 40,000 to 50,000 euros over a period of five years. Consider tuition fees, rent, learning materials, and general living costs. Define a clear savings goal and time horizon. The earlier you start – ideally from the birth of your child – the lower your monthly savings rates need to be to achieve the goal. For example, monthly savings of 50 euros over 18 years can already accumulate to a considerable sum.
An example calculation illustrates this: Suppose you want to save 20,000 euros for your child’s education in 18 years. Without interest earnings, you would need to set aside approximately 92 euros monthly. With an average return of three percent per year, the monthly savings amount decreases. There are various savings options for children that you should consider. Here is an exemplary list of potential cost points:
Semester contributions or tuition fees: 100 to 500 euros per semester.
Rent for a shared flat room: 300 to 600 euros monthly, depending on the city.
Learning materials (books, software): 50 to 100 euros per semester.
Living expenses (food, clothing, leisure): 300 to 500 euros monthly.
Travel costs: 50 to 150 euros monthly.
These figures highlight the necessity of long-term financial planning for education savings. The exact amount needed depends greatly on the choice of study and location.
Compare options: Which form of education provision suits you?
There are various products for educational provision, ranging from bank savings plans and fund savings plans to specialised education insurances. Traditional education insurances are often a type of capital life insurance. They guarantee a specific sum at the start of education and often include risk protection in case the payer passes away. However, the returns on traditional policies are often low and the costs relatively high. Fund-linked options offer higher return potentials but also carry market risks.
An alternative is ETF savings plans, which often provide attractive long-term returns at comparatively low costs. These involve regular investments in exchange-traded index funds. This form of family coverage is flexible, as contributions and withdrawals are often straightforward. However, bear in mind that the capital could also be used for other purposes, requiring discipline in saving. Comparing various products is essential. Pay attention to the following criteria:
Return potentials: What is the expected performance?
Costs: What are the initial and management fees?
Flexibility: Are special payments or withdrawals possible?
Safety: Are there guarantees or risk protection?
Tax aspects: How are revenues taxed?
The decision for the right educational provision is highly individual. A careful assessment of the advantages and disadvantages of each option is crucial for long-term success.
Expert Knowledge: Legal and Tax Aspects of Education Provision
In planning for education funding, legal and tax conditions also play a role. Funds invested in the child's name legally belong to the child. Upon reaching adulthood, the child has free access to these funds. This can be an advantage but also carries the risk that the money may not be used for its intended purpose. Our expert tip: Clarify ownership and rights of disposal early on. In certain investment forms, such as education insurance, the child is often the beneficiary, while the parents or grandparents are the policyholders.
For tax purposes, parents can, under certain conditions, claim the education allowance if the adult child is living away from home and is in their first vocational training. This allowance currently stands at 1,200 euros per calendar year. Income from capital investments for children is generally taxable, although the saver’s allowance and, where applicable, a non-assessment certificate can be used. Certain insurance product payouts may be eligible for tax advantages if the contract had a minimum term of twelve years and the payout occurs after the policyholder reaches the age of 62. A thorough review of the tax implications is advisable to best plan the financial security for children.
Long-term perspective: Start early and stay flexible
The key to successful education planning lies in starting early. The earlier you begin saving, the more powerful the effect of compound interest will be, and the smaller your regular savings can be. With just 25 euros per month, it's possible to build up considerable capital over a period of 18 to 20 years. Flexibility is another important factor. Life circumstances can change, so you should choose a savings plan that allows adjustments. This includes the possibility of making special payments, for example, with money gifts for school enrollment or communion, as well as the option to adjust or pause contributions.
Regularly review your investment strategy, about every three to five years, and adjust it if necessary. Shortly before the planned payout date, it may be wise to switch from high-yield investments to safer options to protect the accumulated capital from short-term market fluctuations. Remember that education planning is a long-term project. Patience and discipline are just as important here as making smart product choices. Comprehensive advice can help you develop the optimal strategy for your individual situation.
Request your individual risk analysis now: Have your insurance situation checked for free and receive concrete optimization suggestions.
More useful links
The KfW provides information on student loans and qualification programmes.
The Federal Employment Agency provides details about eligibility, amount, and duration of child benefits in Germany.
The Federal Ministry of Finance offers information on the child tax allowance.
FAQ
Was ist der Unterschied zwischen einer Ausbildungsversicherung und einem ETF-Sparplan für Kinder?
Eine Ausbildungsversicherung ist oft eine Kapitallebens- oder Rentenversicherung, die eine garantierte Summe zu einem bestimmten Zeitpunkt auszahlt und meist einen Risikoschutz beinhaltet (z.B. bei Tod des Versorgers). Ein ETF-Sparplan investiert regelmäßig in börsengehandelte Indexfonds, bietet höhere Renditechancen bei meist geringeren Kosten, ist flexibler, beinhaltet aber in der Regel keinen direkten Versicherungsschutz und unterliegt Kursschwankungen.
Können Großeltern auch eine Ausbildungsvorsorge für ihre Enkel abschließen?
Ja, Großeltern können ebenfalls eine Ausbildungsvorsorge für ihre Enkelkinder einrichten, beispielsweise durch Abschluss einer Ausbildungsversicherung als Versicherungsnehmer oder durch Einrichtung eines Sparplans auf den Namen des Enkelkindes oder auf eigenen Namen mit dem Enkelkind als Begünstigtem.
Was passiert mit der Ausbildungsvorsorge, wenn mein Kind doch nicht studieren möchte?
Das hängt von der gewählten Sparform ab. Bei flexiblen Anlageformen wie ETF-Sparplänen oder Banksparplänen kann das angesparte Kapital in der Regel auch für andere Zwecke verwendet werden, z.B. für den Führerschein, die erste Wohnung oder als Startkapital für die Selbstständigkeit. Bei Ausbildungsversicherungen ist die Flexibilität oft geringer, aber Kapitalentnahmen oder eine Kündigung (ggf. mit Verlusten) sind meist möglich.
Wie wirkt sich eine Ausbildungsvorsorge auf den BAföG-Anspruch aus?
Angespartes Vermögen des Kindes, auch aus einer Ausbildungsvorsorge, wird bei der Berechnung des BAföG-Anspruchs berücksichtigt und kann diesen mindern oder ausschließen, wenn es bestimmte Freibeträge übersteigt. Es ist ratsam, sich hierzu aktuell zu informieren, da sich Freibeträge ändern können.
Welche steuerlichen Vorteile gibt es bei der Ausbildungsvorsorge?
Eltern können unter Umständen den Ausbildungsfreibetrag (aktuell 1.200 Euro jährlich) geltend machen, wenn das volljährige Kind auswärts wohnt und eine Ausbildung macht. Erträge aus Kapitalanlagen sind steuerpflichtig, wobei Sparer-Pauschbetrag und ggf. Nichtveranlagungsbescheinigung genutzt werden können. Bei bestimmten Versicherungsauszahlungen nach langer Laufzeit (mind. zwölf Jahre) und ab dem 62. Lebensjahr können Erträge hälftig steuerfrei sein.
Wie hoch sollten die monatlichen Sparraten für die Ausbildungsvorsorge sein?
Die Höhe der monatlichen Sparrate hängt vom gewünschten Sparziel, dem Anlagehorizont und den finanziellen Möglichkeiten ab. Bereits mit kleinen Beträgen ab 25 oder 50 Euro monatlich lässt sich über viele Jahre ein signifikanter Betrag ansparen. Eine individuelle Berechnung ist empfehlenswert.
