Holidays, Finances, and Frugality: Exploring German Consumers' Saving Habits
Germans' Top Savings Goals for 2025: Unveiling Preferred Financial Reserves - Economic Analysis Reveals: Germany's Least Expensive Year Forecasted for 2025
In a study by Idealo and Kantar, vacation emerged as the top area for savings for 42% of participants, followed closely by bolstering financial reserves (39%) and retirement (32%). Other popular saving spots included major purchases such as TVs or bicycles (28%)[1]. However, a significant one in six people expressed a desire to save but found it challenging[1]. More than half of the survey participants acknowledged concerns about maintaining a comfortable funding level[1].
Slashing Expenses: A Notable Trend
As prices continue to rise, consumers are taking steps to cut back on non-essential expenses. According to the study, the largest savings are observed in clothing and accessories, as well as dining out[1]. Approximately half of the participants affirmed restraint in these expenditure categories[1]. Other consumer goods such as sports equipment, electronics, hobby items, and even some non-food products like books and cosmetics also experienced a reduction in spending[1].
Age Gap in Economy and Style
The study unearthed generational differences in spending patterns. Elderly Baby Boomers tend to save more on clothing, compared to Gen Z (18-30 years old), who prefer cutting costs on groceries[2]. Idealo CEO Mark Dekan attributes these differences to fashion's importance in self-expression among the younger generation[2]. "Given that they value fashion as an expression of their individuality, it's logical they may pay less attention to this category," says Dekan[2]. On the other hand, Baby Boomers more likely cut back on restaurant visits[3].
A Frugal Feast: Entertainment and Nightlife
Besides dining and various cultural or leisure events like cinema, concerts, and festivals, consumers are showing austerity in less frequent areas like books, pharmacy, and health and sports facilities[1]. With 46% expressing belt-tightening on these activities[1], it indicates a broader shift towards financial caution amidst the challenging economic climate.
Several budget-conscious strategies have emerged. The majority of consumers approach their savings by comparing prices across different providers (64%)[1]. Additionally, signifying a growing preference for discounts, 56% pay extra attention to special offers, and 46% make use of discount coupons[1].
Note: This survey was carried out in May 2022, with 2006 participants aged 18 to 64 in Germany. The market research company Kantar was involved in the survey.
- Key Findings:
- Traveling is the most common area for savings (42%) among Germans.
- Building financial reserves (39%) is also high on the saving priority list.
- Retirement savings (32%) and major purchases (28%) round out the top four.
- Participant Demographics:
- 18 to 64 years old and online shoppers
- Conducted by Idealo and Kantar in May 2022
- In the study by Idealo and Kantar, it was found that community policy on personal-finance, particularly budgeting and vocational training for financial literacy, could potentially aid German consumers in managing their expenses more effectively, given their focus on saving for travel (42%) and bolstering financial reserves (39%).
- As the results of the study indicate a trend of consumers cutting back on non-essential expenses such as dining out (half of participants) and clothing and accessories (significant savings), vocational training in lifestyle management might also help them make more informed decisions when it comes to their lifestyle choices and personal-finance.
- Moreover, the age gap in economy and style revealed in the study suggests a need for tailored vocational training programs to cater to the unique spending habits of different generations, with Baby Boomers showing a preference for cutting back on restaurant visits and Gen Z gravitating towards cost-saving measures in grocery shopping, among other categories.
