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. For ideas, check out the guide to taking cheaper family holidays and the guide to free activities for children in Switzerland.
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.
11. Join the sharing economy
Creating a habit of renting or borrowing instead of buying can radically reduce your expenses. You can get ideas of where to start in the guide to Swiss sharing economy platforms.
12. Protect your family from worst-case scenarios
Becoming disabled or even passing away can seriously disrupt your family’s finances if you do not plan ahead.
Personal bank accounts are immediately frozen when the account holder dies, and become part of your estate until your inheritance is distributed. If, for example, you unexpectedly passed away, your spouse would not be able to use money from your bank accounts to pay the rent, mortgage payments, and other important bills, or to buy groceries.
Using a joint account shared by you and your spouse or partner allows the surviving person to access money for necessary expenses if one of you unexpectedly passes away.
It is also worth checking how high the survivor’s pensions that would be paid out by the OASI and your employer-based pension funds are. If the money that remaining family members would receive would not adequately cover your family’s budget, then you should consider getting term life insurance to make up the difference.
Disabilities caused by accidents are sufficiently covered by Swiss employer-based accident insurance﹘as long as you are either employed or receiving unemployment insurance benefits.
But if you become disabled because of illness, your basic disability pensions from the DI and employer-based pension funds generally will not equal the actual salary you used to earn. Some employer-based pension funds have supplemental disability insurance that covers your full insured salary. It is important to check whether or not your pension fund plan includes this supplemental insurance. If it does not, it may be worth getting private insurance for disabilities caused by illnesses to cover the difference.
More on this topic:
How to teach your children about money
Smartphones for kids: Tips for parents
Dental insurance in Switzerland: A practical guide and comparison
Leading credit cards
Swisscard Cashback Cards Amex
No annual fees
Two cards Amex & Visa/Mastercard
With cash back
Migros Cumulus Visa
No annual fees
With Cumulus points
Without foreign currency fees
Deal of the Day 
Free credit card
Swisscard Cashback Cards Amex
No annual fees
Brokers with low fees
Swissquote
Leading Swiss online bank with FINMA license
Free multicurrency account & low commissions
Access to more than 3 million products (shares, ETFs, crypto and more)
Cornèrtrader Special Offer
Special offer: particularly favorable conditions for Moneyland users
No custody account fees for shares
Swiss online bank with FINMA license
Saxo Bank Special Offer
Special offer: Reimbursement of brokerage fees up to CHF 200 for 90 days
Licensed Swiss bank (FINMA)
Free expert research and trading signals
Cheap bank accounts with card
Cheap bank accounts with card
Bank WIR Bankpaket Top
Free account & card
No exchange fees for foreign payments (interbank exchange rates)
24 ATM withdrawals worldwide per year free of charge
Radicant
High interest on your everyday account
Best exchange rates
Up to 1% of card spending as saveback in the investment portfolio
Yuh
No account fees
Banking partner: Swissquote & Postfinance
CHF 20 trading credit with code «YUHMONEYLAND»
Alpian
CHF 100 welcome bonus
Favorable foreign exchange rates
Multi-currency account with Visa card (CHF, EUR, USD, GBP)
UBS key4
50 KeyClub points as a welcome gift
Online private account with debit card
