The importance of saving in times of inflation and the corona pandemic: This is how Germans react to financial uncertainty.

The importance of saving in times of inflation and the corona pandemic: This is how Germans react to financial uncertainty.

According to a report by www.merkur.de,

Saving for emergencies is always a good idea, especially with current inflation. Many Germans have saved more money during the corona pandemic. According to a study by the Bundesbank, the average savings in German checking accounts have increased significantly. While higher energy and food prices make saving more difficult, Germans still demonstrate exemplary saving behavior, especially Generation Z.

Average savings increased significantly during the pandemic. The increased saving can also be observed after the pandemic and during high price inflation. The savings vary depending on age groups, school and vocational training. For example, the current account balance of 16 to 24 year olds is on average 1,400 euros, while 55 to 64 year olds have an average of 3,100 euros in their account.

This increased savings could have a long-term impact on the market and the financial industry. Since consumer spending has been affected, there is a possibility that the downstream industries will also be affected. Banks may also need to adapt their strategies to deal with their customers' increasing savings. Overall, the increased savings rate could have long-term effects on the German financial market.