Raising a family in Switzerland can be financially challenging, but it does not need to leave you cash-strapped. Follow these simple money-saving tips to stay in the black.
Children are heaps of fun, but all that fun comes at a price. A study by the Swiss federal office of statistics places the average monthly cost of raising a child in Switzerland at 819 francs. The per-child cost is lower when you have more children, with 2 kids costing 1310 francs per month and 3 kids generating 1583 francs of extra expenses, but that still puts parents at a financial disadvantage over their peers.
Child subsidies and tax deductions for parents may help to level the playing field, but the financial challenges faced by parents are still substantial. But proper money management and a willingness to adapt your lifestyle can help you enjoy the best of both worlds - having children and staying on track financially.
1. Take full advantage of tax benefits
Most parents know that a per-child deduction applies to their taxable income, but there are many additional deductions which are often overlooked. For example, generous deductions apply to money spent on daycare (up to 10,100 Swiss francs for federal income tax, plus cantonal and municipal tax deductions).
2. Choose your housing setup carefully
Housing is by far the biggest expense faced by most Swiss families. Housing cooperatives are common in Switzerland and charge rents well below market rates. If you meet the criteria, renting from a housing cooperative can save you money.
In some (but by no means all) cases you can save money by buying a home instead of renting. The rent or buy calculator lets you easily calculate which option is more economical.
It is also important that you ask yourself just how large a home you really need. In many parts of Switzerland each extra room can easily add 500 francs to the cost of a rental home. You alone can decide whether the extra space or the extra savings would be the better investment over the long term.
3. Optimize your compulsory health insurance spending
Take time to compare health insurance policies and move your family to the most affordable insurance. Using the most affordable managed care model can drastically cut the cost of premiums. Choosing the optimal deductible for each person based on your individual healthcare expenses is also important. Some insurers offer discounts for families with kids and these are accounted for in the moneyland.ch comparison. In some cases, using different insurers for adults, children and young adults works out cheaper.
Always look into whether you are eligible to receive health insurance premium reductions. Depending on the canton you live in, the insurance you use and the size of your family, these subsidies can even cover your premiums in full.
4. Get the right supplementary health insurance
Supplementary health insurance costs money, and it is important to carefully consider whether you really need additional insurance. The coverage you get varies between policies. Only a handful give you decent coverage for preventative checkups, dental work, glasses and visual training – the expenses which you are most likely to come up against. The right supplemental health insurance can actually save you money. You can filter and sort the coverage provided using the supplemental health insurance comparison.
5. Cut the costs of vacations
Having children multiplies the cost of travel and hotel stays, which can make vacations difficult to afford. But there are ways to take vacations without breaking your budget. Check out the guide to getting getting cheaper hotel stays, the guide to cheaper skiing and the guide to saving on flights for ideas.
6. Save on restaurant dining
Eating out is a favorite pastime in Switzerland, and is often more convenient than lugging food around. Here too, the cost multiplies with each child. Get ideas on how to save from the guide to restaurant savings.
7. Rethink transportation
Owning your own car gives you a great deal of freedom, but large family cars are expensive to buy and maintain. If you only have one or two kids, consider sticking with a small, economical car. If you only need a car occassionally, car sharing services and private rentals provide cheap alternatives to owning your own car.
The Swiss federal railway SBB/CFF issues annual travel passes which let your kids accompany you on trains, buses, boats and even some cable cars. These cost just 30 francs per year per child, and are free from the third child onwards. If you rarely travel and generally stay on the beaten path, using public transport instead of owning a car can save you money.
8. Buy used
Switzerland is one of the best places in the world to find second hand goods in good to excellent condition at giveaway prices. Furniture in perfect condition sells at a fraction of its new retail price on classified websites like Tutti and Anibis and online auctions like Ricardo. Second-hand stores – many of them charity stores – are also plentiful. Buying used makes even more sense if your children tend to wear out furniture quickly.
Many municipalities host exchanges for children’s clothes, either permanently or several times per year, making it easy to pick up barely-used kids clothes and shoes for a song. The same goes for bicycles, toys and sports equipment. Bicycle exchanges (German: Velobörsen, French: bourses aux vélos) are a great place to pick up quality bikes for as little as 10% of their new retail price.
9. Cut the cost of groceries
More people in the house generally means more food being eaten, and groceries are a major expense for most Swiss families. Take a look at these tips for saving on grocery shopping in Switzerland for ideas on how to put more food on the table for less.
10. Choose the right telecom solutions
The cost of communicating may have come down a lot, but the recurring costs of phone, internet and TV services still add up to hundreds or even thousands of francs per year. Always compare telecom plans and use the most affordable offers which match your needs.
Consider your telecom needs carefuly. If you rarely use your home landline or Internet connections, consider terminating them to save the unnecessary cost. If you primarily use your home Internet and phone, consider ditching your mobile phone plans in favor of prepaid. Cable TV might be entertaining, but if you rarely have time for TV, you could save a lot of money by picking up free movies at the local library or subscribing to a cheap online video streaming service.
More on this topic:
Free activities for kids in Switzerland
How to take cheap family holidays
How to teach your children about money
Health insurance discounts for families explained
Family mortgages explained
Swiss family mobile plans explained
Smartphones for kids: Tips for parents
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