Unveiling the German Savings Trend: Where the Money Goes
Anticipated Savings: Forecasting German Households' Budget Restraints in 2025 - Year with Minimal Economic Burden in Germany (2025)
Take a peek into the wallets of Germans, and you'll find a significant chunk of their savings earmarked for one thing: travel! A whopping 42% of respondents in a recent Idealo survey, conducted by Kantar, are stashing their hard-earned cash for vacations, making it the top saving goal among Germans[1].
Not only travel, but building up financial reserves is also a high priority for Germans, with 39% of respondents focusing on this aspect[1]. Retirement and major purchases like new TVs or bikes follow close behind, with 32% and 28% of respondents saving for these goals respectively[1].
However, not everybody is managing to save. Six percent of respondents admitted to wanting to save but not being able to[1]. Almost two-thirds of Germans are concerned about their financial stability, with 42% reporting that they had to dip into their savings last year[1].
In a world fraught with rising costs, it seems the German consumers are keeping their purse strings tight. Cutbacks are most common in areas like clothing and accessories, and dining out. Almost half of the respondents have made cutbacks in these areas[1]. Many are also reining in spending on other consumer goods, hobby and leisure items like tennis rackets and yoga mats, and electronics[1].
Aging and Spending Patterns
There appears to be a generation gap when it comes to spending patterns. Baby boomers (over 60-year-olds) are more likely to save on clothes, while Generation Z (18-30-year-olds) tends to tighten their belts on groceries[2]. Apparently, fashion is a reflection of Generation Z's individuality, and they're less inclined to save in that area[2]. On the other hand, baby boomers, who might be dining out less frequently, are more likely to save in restaurants[2].
Thrifty Living: A Combo of Frugality and Pleasure
Apart from dining out, other cultural and leisure activities like cinema, concerts, and festivals are also feeling the pinch of the poor consumer sentiment. Thrifty living is the new trend, with 46% of respondents saving on cultural activities[1]. Clubs and nightlife are also areas that many Germans are looking to save on[1]. Less frequently mentioned areas for saving include books and media, drugstore and cosmetics, and health and sports offers like fitness studios or yoga courses[1].
According to Idealo, Germans are employing various methods to cut back on expenses. The most common strategy is to compare prices of different providers, said to be used by 64% of respondents[1]. Many are also paying attention to special offers and deals (56%), and using discount coupons (46%)[1].
Note: The survey was conducted with 2,006 people aged 18 to 64 in Germany in May of this year by the market research company Kantar.
- Survey
- Saving Goal
- Vacation
- Germany
- Retirement
- Tightening the Purse Strings: Common Areas
- Clothing and accessories
- Restaurant and café visits
- Hobby and leisure articles
- Electronics
- Intergenerational Spending Trends
- Baby boomers and clothes
- Generation Z and groceries
- Sources
- [1] Idealo Survey conducted by Kantar in May 2023.
- [2] Personal insights by Idealo CEO Mark Dekan.
- In the context of the German savings trend, it's worth considering the community policy that could offer vocational training programs to help individuals improve their financial situation, such as personal-finance management and saving techniques.
- To further bolster personal savings, Germans might find it beneficial to allocate a portion of their earnings towards vocational training focused on financial management and personal-finance skills, thus aiding in future savings goals and long-term financial stability.
){kind=link}