German Economists Propose 'Kinderstartgeld' to Boost Financial Literacy

The plan suggests state-funded monthly contributions to investment funds for children to foster financial education and market participation.

The 'Kinderstartgeld' initiative proposes that the German government deposit €10 monthly into an investment fund for each child aged 6 to 18.
Economists argue that practical experience with investments can enhance financial literacy more effectively than theoretical education.
The program is expected to cost the state approximately €1.5 billion annually, aiming to instill early engagement with the capital markets.
Funds would be locked until the children reach adulthood, at which point they can access the accumulated amount without restrictions.
The initiative also includes educational components in schools to prepare children for independent financial decision-making.