Saving for your child is very useful for later, because studying and living independently costs a lot of money. For your child it is very nice if you have built up a small buffer. There are several ways to save for your child. For example, you can open a savings account or give your child a gift for later. Read here the ways to save and how you can ensure that you can finance your child tax-free in the future.
Best way to save for your child
You can save for your child in various ways. You can open a savings account, put the money in a piggy bank, give regular donations to your child, or donate a large amount to an account. The one way to save is not always better than the other. The choice you make depends on your income and the way that feels the best for you.
Sometimes it is nicer to set aside a (small) amount each month so that the savings account can slowly grow. If you have a bit of a hole in your hand, you can choose to automatically deposit the monthly amount. You then no longer have to worry about it. There are parents who choose to save the child benefit for their child.
Another possibility is to keep the 13th month or bonuses of your work for your child. You can also donate your child later if he or she was 18 years old. Or you have already made a donation and put it on a bank account so that you still have interest in it. The best way to save is to choose a way that suits you.
Every family deals with money in a different way and has its own spending pattern.
Are you wondering how much you can save for your child to have him or her study etc.? Then use the Calculation Tool Money Plan Study Children.
How much save for child?
Do you want your child to study later? It does not matter if your child goes to MBO, HBO or WO: studying costs a lot of money. On average you can count on 1,000 euros per month, but the costs can vary a lot. For example, the choice of study plays a role, whether your child will live alone or not and how high the student grant is. You can also choose to pay only a part and your child has to go to work. That is very normal.
Flexible money saving for your child with an investment account?
How much will you save for your child?
Savings idea: How much you will save is of course very personal. Can you miss € 50 per month? Start immediately after the birth of your child and put the money on a savings account. Or even better, choose a stable investment fund (BNP Obam or Skagen Global) that invests globally in the shares of the largest companies. From here on, enter € 50 every month faithfully, adjust the amount every year to inflation and before you know it you have saved a beautiful capital for the study. (€ 50 per month with a 6% return means that if your child turns 18 an amount of over € 19,000! Calculate it yourself here.)
Pay attention to the tax when donating and saving for child!
If you are going to save for your child or give donations, it is very important that you take into account the tax. This applies to both savings and donations. If you open a savings account on the name of your child, you give your child an annual amount, as it were. If this amount exceeds € 5363, - (2018), tax must be paid.
If you save for your child on your own account and you want to donate this amount in one go after your child has turned 18, you will be donating a large sum in one go. You can give children between the ages of 18 and 40 one-off tax free the amount of € 25,731. This amount must be donated in one year. You can not spread it over 2 years. If you save for the study of your child and you want to do this tax free, then the amount you donate once may be € 53.602.
Your child must use the money for the study. If your child starts using the gift to buy a house or to pay off the mortgage, the amount may be increased to € 100,800. You can spread this amount over 3 years, as long as your child is under 40 in the last year.
What about saving money for your child if you are divorced?
Donate or save for your child applies to both parents at the same time. Everything you give, even if you do this separately, is put together. So always balance the amount so that your child does not have to pay tax.
One last factor to take into account when it comes to paying taxes. Your child's savings are part of your ability until your child turns 18 years old. About the capital that is over € 30,000 per parent (so both parents together € 60,000) must pay your taxes.
Save for child tips
Saving for your child can be very useful to pay large costs later on. For example, for the study of your child or you give your child a nice pocket money for the moment that he or she stands on his own feet.
If you are going to save, there are a number of things you can pay attention to: