Germans primarily set aside funds for future retirement, housing, and rainy day emergencies, according to recent surveys.
Living frugally in the face of rising costs can be a struggle. Even if you manage to save some money, it often gets tucked away for the same purpose.
Saving habits remain strong in Germany. A study in April highlighted a common blunder that causes us to squander billions. So, what do most of us actually save for? A survey by market research firm Kantar for price comparison portal Idealo revealed that an impressive 42 percent of respondents are saving to afford travel. If you're curious about how to save money on vacations, we've got you covered—we've already written an article on that topic. Daring souls may opt for almost free alternatives like housesitting or apartment swapping.
Travel appears to top the savings priority list, according to the survey, which polled 2,000 online shoppers aged 18 to 64 in May.
The Road to Savings: Where Germans Channel Their Earnings
Alongside travel, 39 percent of respondents save to accumulate financial reserves. An additional 32 percent are saving for retirement, while 28 percent save for larger purchases like bikes or televisions. However, one in six respondents finds it financially impossible to save regularly despite their desires.
With rising living costs, many people are forced to adapt their spending habits. According to the survey, clothing, restaurant visits, and accessories are the areas most frequently cut. Approximately half of the respondents admit to making such reductions. Leisure items like yoga mats, tennis rackets, and electronics follow closely behind, with 41 percent and 40 percent of respondents tightening their belts, respectively.
Generational differences emerge in spending patterns. Older baby boomers tend to save more on clothing, while younger Generation Z (ages 18 to 30) prioritizes cutting food expenses. Mark Dekan, CEO of Idealo, believes fashion serves as an expression of self for younger people, so they save less in this category. Instead, they reduce spending in other areas like restaurant visits.
The Frugal Lifestyle: Where Consumers Slash Their Budget
Cultural and leisure activities take a significant hit in the current frugality mindset. Forty-six percent of respondents cut back on cinema, concerts, and festivals. Spending less on clubs or nightlife follows closely, affecting 46 percent of respondents. Areas like books, drugstore and cosmetics items, and health and sports offers, such as fitness studios, are less affected.
To minimize their spending, consumers increasingly compare prices and seek deals. The survey shows that 64 percent perform price comparisons, 56 percent take advantage of discount actions, and 46 percent use vouchers. A recent study demonstrated how much customers can save on average with loyalty discounts and bonus programs [2].
Strangely enough, there's an effective savings method that's been around for over a century [3].
[1] Instagram link celebrating Idealo's 25th anniversary, but does not specify savings goals: https://www.instagram.com/p/CfmzXt8vSID/[2] Article on customer savings with loyalty discounts and bonus programs: https://en.idealo.com/de/blog_savings-from-loyalty-programs-myth-or-fact.html[3] Effective saving method developed over 100 years ago: The envelope system or "envelope budgeting."
Saving for personal-finance purposes, especially travel and financial reserves, dominates the savings priorities of Germans, according to a survey by Idealo. In contrast, a significant number of respondents find it difficult to save regularly due to high living costs, and they frequently cut expenses in areas such as clothing, restaurant visits, and accessories.
