Majority of Germans hoard funds for this particular matter, according to recent poll
Saving cash nowadays is a real challenge for many, thanks to escalating expenses. Yet, folks continue to save, even when it seems there's nothing left. Recently, a study revealed some common pitfalls that cost us billions — and one of the major culprits happens to be our savings habits.
In Germany, saving is still prevalent. According to a survey in May conducted by Kantar on behalf of price comparison portal Idealo, 42% of Germans save specifically to afford vacations. If you're wondering how to cut costs on your next getaway, we've already covered that in another post. For the thrill-seekers, options like house-sitting or apartment swapping are almost free!
Vacation isn't the only saving priority among Germans. The survey also revealed that 39% save to create an emergency fund, while 32% save for retirement. Buying big-ticket items, like bikes or TVs, is another goal (28%). However, nearly one in six respondents couldn't save regularly, despite wanting to, due to higher living expenses.
To adapt their spending, many folks have started trimming their budgets. According to the survey, the fashion, dining, and entertainment sectors experience the most cuts. Around half of respondents have reduced their spending on clothes, restaurants, and leisure activities like sports equipment, while 41% cut back on electronics.
Interestingly, spending patterns vary across generations. Older generations tend to focus their savings on clothes, while younger generations, such as Generation Z (ages 18 to 30), are more likely to cut back on food expenses.
As for reducing expenses, people are increasingly using comparison websites, taking advantage of discounts, and collecting vouchers. Some have even discovered a century-old saving method that's remarkably effective.
Where and How Germans Save
Germans utilize various strategies to trim their expenses in areas like housing, utilities, transportation, and leisure. Here are a few common approaches:
- Housing: When negotiating rent, Germans check if their rent goes beyond the legal limit using rent calculators and seek help from tenant associations or lawyers to secure lower rent. Aware of scams and overpayments, they also seek legal advice to reclaim overpaid funds. When moving, Germans take their time to find more affordable homes.
- Utilities: Changing electricity and gas providers regularly, especially before contracts renew, can save €100–€200 yearly. Additionally, those receiving financial aid can stop paying the TV tax.
- Transportation: The Deutschland Ticket, priced €49 (as of 2024, but now reportedly €58), allows unlimited regional travel and is a popular cost-saving method compared to individual tickets. Annual student tickets are also cheaper than monthly ones. In urban areas, many avoid car ownership by cycling or sharing cars.
- Leisure and Culture: German savers share subscription services like Amazon Prime, take advantage of free events, and employ budget-friendly travel tips. Additionally, they recycle bottles and cans for income through the deposit system and separate waste for community programs.
[1] https://www.deutschewelle.com/en/study-reveals-germans-employ- dozens-of-practical-strategies-to-reduce-living-costs-and-increase-savings/a-58478909[2] https://www.expats.de/moving-to-germany/cost-of-living/[3] https://www.recycling-guide.eu/germany/
In Germany, saving is not only for vacations, as 39% save to create emergency funds and 32% save for retirement. Several strategies are utilized by Germans to reduce expenses, such as negotiating lower rent, regularly switching electricity and gas providers, and avoiding individual transport tickets in favor of the Deutschland Ticket. Personal-finance management also includes sharing subscription services, recycling bottles and cans, and adapting spending habits in the fashion, dining, and entertainment sectors.
