Vacation in focus: This is how Germans save for their dream trip!

Vacation in focus: This is how Germans save for their dream trip!

A recent survey shows that Germans are increasingly inclined to save in times of inflation and increased living costs. According to a study by the price comparison portal Idealo, which was carried out by Kantar in May among around 2,000 people aged 18 to 64, 42 percent of those surveyed are saving primarily for their next vacation. This is the most common reason for saving and far surpasses other financial goals, such as building financial reserves, for which 39 percent of respondents save. T Online reports that retirement provision at 32 percent and larger purchases such as televisions or bicycles at 28 percent are also mentioned as savings goals.

The need to save is also reflected in the concerns of many consumers. Almost two thirds of those surveyed said they were worried about making ends meet. In addition, 42 percent had to fall back on their financial reserves. What is interesting is that one in six people say they would like to save but are unable to do so. These savings are particularly noticeable in certain areas. The survey results indicate that 50 percent of those surveyed save on clothing and visits to restaurants and cafés, 46 percent forgo cultural and leisure activities, 41 percent for hobby and leisure items and 40 percent forego electronics. T Online

Generations and psychological effects

The differences in savings behavior between generations are striking. Baby boomers, i.e. people over 60, are more likely to save on clothing, while Generation Z (18-30 years old) are more likely to save on food. Young people see fashion as an important expression of their personality. The survey also shows that consumers are actively using methods to reduce costs. 64 percent of those surveyed compare prices, 56 percent pay attention to special offers, and 46 percent use discount coupons.

According to Jörg Funder, a professor of commerce, many consumers are unsettled by rising prices, leading to a general reluctance to spend. Carsten Brzeski, chief economist at ING Bank, also confirms that Germans tend to save “in fear” despite rising wages and slowing inflation. Economists see the purchasing reluctance as damaging to the German economy, as private spending accounts for around half of gross domestic product. daily news

Outlook on consumer behavior

Consumers expect a slow return to consumption in the near future. GfK and the Nuremberg Institute for Market Decisions report a slight improvement in consumer sentiment, although purchasing reluctance remains. However, this negative stance could change in the second half of 2024, when falling interest rates from the European Central Bank could boost investment and improve consumer sentiment. Despite the pessimistic expectations for economic growth, hope for a positive turning point remains.