Anyone thinking about a child plans time, housing and the relationship first. Money often comes later, although it shapes everyday life with a child considerably. Family planning and finances therefore belong on the shared table early, long before the pregnancy begins (in German).
Short answer: Before the child arrives, you clarify how much income disappears during parental leave, which parental allowance entitlement each parent has and how costs are shared. Basic parental allowance (Elterngeld) amounts to at least 300 euros and at most 1,800 euros per month, usually based on 65 percent of net income before the birth (as of November 2025). Child benefit (Kindergeld) is 259 euros per child and month (legal status 2026).
The most important points at a glance
- First clarify who takes a break from work, for how long, and how much income really falls away.
- Calculate parental allowance with the net income of the year before the birth, not with today’s salary.
- Plan child benefit as a recurring payment. It does not fully cover childcare or housing costs.
- Agree who covers which fixed costs before a joint account is used.
- Check both partners’ insurance cover and adjust contracts to the new situation.
How much income disappears during parental leave?
This question shapes almost every later decision. For parental allowance, income before the birth counts, not income during parental leave. Under § 2 BEEG (in German), basic parental allowance lies between at least 300 and at most 1,800 euros per month. The Federal Ministry in its overview names 65 percent of the net income earned in the year before the birth as the usual rule (federal parental allowance flyer, as of November 2025).
Assumption: One partner earned 2,400 euros net per month before the birth. The standard rate of 65 percent results in 1,560 euros of parental allowance per month. This amount lies within the statutory range. The responsible parental allowance office sets the actual amount on the basis of the documents submitted, so this calculation is only a planning figure.
It also matters who actually takes parental leave. Anyone who earns less in the first months than before often notices this only in daily life. It is worth calculating the months before the birth once as a table, with the net income of both partners, the possible parental allowance and fixed costs. This shows early whether the plan holds or whether a shift is needed.
Which benefits should you know?
| Benefit | Amount | Status and source |
|---|---|---|
| Basic parental allowance | at least 300 euros, at most 1,800 euros per month | As of November 2025, section 2 BEEG |
| ElterngeldPlus | 150 to 900 euros per month | As of November 2025, federal ministry flyer |
| Child benefit | 259 euros per child and month | Legal status 2026, section 66 EStG |
Parental allowance and child benefit are handled by different offices. You submit both applications separately and should prepare the documents for each office on its own. For the basics of how months are divided between partners, see Parental months for fathers and partners (in German).
Which contracts and accounts should you review beforehand?
Many couples keep contracts separate and only notice with a child that responsibilities shift. Check which bills will be duplicated, which insurance applies to whom and whether a joint loan exists. For joint loans, each partner is generally liable for the full amount towards the bank. How a separation divides this is explained in Debts after separation (in German).
Accounts also need a clear rule. A joint household account can create transparency, but it does not replace an agreement on shares. If you also want to arrange your assets legally, learn about the matrimonial property regime that a marriage brings. The differences between separation of property and the accrued gains regime are described in Separation of property or accrued gains (in German).
Checklist: what you should clarify together
- Income picture: put the net income of both partners and the expected income during parental leave side by side.
- Plan parental leave: decide who takes which months and when a return to work is realistic.
- Check fixed costs: rent, insurance and contracts that change with a child.
- Set the split: decide who pays which expenses and whether a household account is kept.
- Check protection: power of attorney, will and insurance for both partners.
Which expenses change with a child?
A child changes habits more than basic costs. Typical items include clothing, childcare, mobility and a larger housing need. Whether a child needs a room of their own or whether a childcare place involves co-payments depends on the municipality and the provider. Ask the responsible body for these sums instead of adopting figures from friends.
For housing, a sober calculation helps: a move costs time and money, and an extra room affects the rent. If you run through the expenses once before the birth, you see early where the real room for manoeuvre lies. This also applies to one-off purchases such as a pram or a cot, which are often cheaper second hand or on loan.
How to record your decisions
Couples often forget agreements once daily life with a child begins. A short written note with the date, the amounts agreed and the responsibilities helps avoid misunderstandings. The note does not need to be a contract, but it should be worded so that both partners read it the same way. Larger decisions should also be discussed with a specialist service before they take effect.
Frequently asked questions
Is there parental allowance if there was no income beforehand?
Yes, the law provides a minimum amount for this case. Under section 2 BEEG (in German), parental allowance without income before the birth is at least 300 euros per month. Whether other benefits apply alongside it is checked by the responsible parental allowance office on the basis of the documents submitted.
Does child benefit affect parental allowance?
Child benefit and parental allowance are separate benefits with their own applications and different offices. They are therefore applied for and assessed separately. For planning, note both amounts side by side so the overall picture is correct.
How high is child benefit?
Child benefit amounts to 259 euros per child per month under section 66 EStG (in German). This amount applies to the legal status of 2026. Whether and when the amount changes should be checked at the time of planning, because the family benefits office names the rate that currently applies.
Do you have to marry to be financially protected?
Marriage is not a condition for parental allowance or child benefit. For protecting both partners, contracts, powers of attorney and the question of who may decide in an emergency matter more. Whether a marriage contract or a power of attorney suits you is best clarified with a specialist adviser or a notary.
When is a personal consultation worthwhile?
As soon as income, contracts and provision are closely linked, a conversation that goes through all points together is worthwhile. The process of a personal consultation at Academycon is described on the page How we work (in German).
What you should do now
- Calculate parental allowance for your net income with the non-binding federal parental allowance calculator.
- Obtain information from the responsible offices before you make decisions.
- Record the results in writing, with the date and the responsible office.
- Review the plan as soon as income or parental leave changes.
Related articles
- Family, Partnership and Money: The overview for young adults
- Newborn: The first financial steps after the birth
- Household budget for two: sharing shared expenses fairly
- Parental months for fathers and partners
- Separation of property or accrued gains
Sources: The federal parental allowance at a glance, flyer of the BMBFSFJ (German), as of November 2025, Section 2 BEEG, minimum and maximum amount of parental allowance (German), Section 66 EStG, amount of child benefit (German), legal status 2026.
Last updated: November 2026. This guide is general information, not individual advice.
