My child turns 18: what changes around money and accounts?

Bank statements

For pupils, students, trainees, volunteers in the social year and in the military service both the current account, as well as the card to the account remain mostly free of charge. However, it is always a good idea to do this before the age of 18. Check the account with the respective financial institution before the child’s 18th birthday. In addition, your child must provide proof of this in good time (e.g., a certificate of deposit).B. Submit certificate of enrollment) to the bank so that the current account remains free of charge.

If your child wants to travel, he or she should also clarify whether the account allows free cash withdrawals abroad. Your child should not take advantage of expensive overdraft interest rates!

Can my adult child now also use online banking??

From the age of 18. Online banking is generally available to account holders in full from the age of 60. Online banking is recommended especially for paying bills, because paper transfers are often very expensive. Online banking is also advantageous when young adults are abroad for a longer period of time.

Important: Security should be a top priority when banking online – therefore, pay attention to important relevant security settings, which we explain in more detail here.

Is there a credit card to go with the current account?

Until the 18.On the occasion of a child’s 60th birthday, there is only a prepaid credit card that can be topped up. Only when your child reaches the age of majority can he or she buy a so-called "credit card" Charge credit card Obtain a savings account that is equipped with a certain credit line.

A credit card is useful for many purposes, be it for traveling during semester breaks or for ordering in online stores. Depending on the bank, however, different fees will be charged. But there are still banks that do not charge any fees for it. Find out more about this from your financial institution or compare different providers! Everything you need to know about credit cards for adults-to-be can be found here.

However, many banks continue to offer the alternative of using a free prepaid credit card for adults, onto which credit must be actively loaded. Check, however, whether additional costs will be incurred.

My child wants to open his or her first account with another bank. What we need to consider?

Young adults need their own account, at the latest, when they move into their own 4 walls. If you already have an account, but the fees or additional costs are too high, for example, or if your child wants a sustainable account, you should not be afraid to change accounts. Banks offer account switching assistance for convenience, which saves a lot of paperwork. You can find useful information on choosing a new account and helpful sample letters here.

Should parents be able to access the account if necessary?

Young adults often have had an account with their parents’ bank since they were children. Their right of disposal ends, however, with the beginning of the age of majority. Discuss with your offspring whether it makes sense to have a bank power of attorney for you as parents or for other trusted persons, in order to be able to act in case of emergency (e.g.B. illness or stay abroad) to access the account.

Should my child use a separate savings or call money account??

In addition to the current account, it can be useful to maintain a separate savings or call money account for the formation of reserves, upcoming purchases or as an iron reserve, even if there is hardly any interest. It pays to compare the conditions. You can find more information on this topic here.

What happens to savings contracts that I have concluded for my child??

Money and savings accounts invested in the child’s name belong to the child. As soon as the child turns 18, he or she can do whatever they want with their money. As parents, you then no longer have access.

Now we need to check these financial products for their continued suitability: When do they become due? Are there still special conditions that apply or are there better alternatives?? You can read more about the investment here.

Should my child start thinking about retirement planning now??

Thinking about old-age provision at the age of 18? This does not seem to be relevant for many yet. But thinking about it early and saving for the long term is worthwhile!

The Riester pension, for example, grants a bonus of 200 euros if taken out when the child is under 25 years old. An independent consultation, for example at your consumer center, can clarify whether there is sufficient financial leeway at 18 and which contracts fit the need.

Can capital formation benefits be used?

Many companies offer capital-forming benefits (VL for short). Encourage your child to check with the staff office when employment or training begins. In addition to the money given by the employer, there can also be state allowances. It pays to take a close look and get good advice.

Are there debts incurred in the child’s name or are benefits being claimed back?

It happens that minors start their adult life already with debts. This can happen when parents make contracts in their children’s names or approve contracts that are over the minor’s head. But there may also be reclaims from authorities about social benefits against minors.

Be fair and consider if there are any obligations that will be enforced against your child. Your child’s liability for such debts can be limited in many cases. You can read more about this here.

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