✏️ Exciting News: Our website is getting a fresh new look - stay tuned! 💻

How should I use my savings

How to manage money

Many young people start earning money early on – either because they have a job or because they receive apprenticeship remuneration. So the question may arise: What should I do with my money?

Let’s say you are a 18 years old, and you are an apprentice builder. Your net income is about €1,600 per month, and you still live with your parents. The first answer to the question of what to do with your money is probably to spend it. Spending money is fun, but even small sums add up if you spend them regularly on things like dining out or taxis – your money will disappear quickly even though there’s not a lot left to show it.

The second answer may be to save money. At the moment, we are experiencing hidden inflation – interest rates on savings are lower than the overall inflation rate, which means that the value of savings in the bank goes down even though interest accrues on deposits. Does it make sense to park money in a savings account? Not really. But what other options are there?

Investing money

The earlier you start to invest some of your income, the longer the investment will generate returns for you. Most people keep a nest egg of about three to four times their monthly income for emergencies. If you still live with your parents, you probably do not have to cover any fixed costs such as rent, electricity and water bills, which means you can save a substantial part of your income if you use only some of it for spending. You can put your money in long- or medium-term investments.
If you are considering a medium-term investment, a home savings account may be an interesting option. You can open it for a term of six years, for example, during which you could pay in € 100 every month. The money is automatically debited to your account every month, and after six years, the accumulated capital plus interest is paid out; depending on the interest level, you receive about € 7,500. That may come in handy for a down payment on a rented apartment, for example. And what about a long-term investment?
There are a number of long-term investment options, for example investing in funds for a pension in later life. Funds re-invest the money they receive in stocks and bonds, among other things. Many different investment vehicles of this type are available, including short-term funds with higher risik and longer-term ones with defined maturities and lower risk. But in any event, you should get as much information and advice as possible to find an investment product that is just right for you.

Author: Niko Moshammer
For more about this topic, see Factsheet - Gewinn und Risiko   Autor: Niko Moshammer Mehr zu diesem Thema findest du im Factsheet- Gewinn und Risiko.
How should I use my savings

What Dr. Dr. Money says

You are currently viewing a placeholder content from YouTube. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.

More Information

Subscribe to our newsletter*!

Stay up to date with our newsletter –
subscribe for new tour dates and important updates.
*only available in German

More about Geld & Glück

Foreign currency loan
Banken & Wirtschaft, Schulden

Foreign currency loan

A foreign currency loan is actually a speculative deal. The borrower hopes for interest and exchange rate advantages. But that is a risky bet.
How should I use my savings
Geld & Glück

How should I use my savings

Many young people already earn money regularly. However, this can raise the question: What do I do with my money anyway?
Account costs
Konto & Zahlung

Account costs

It’s easy to get a free account during your apprenticeship. Nevertheless, you have to be careful that you don’t end up having to pay for your account.
What does a bank do?
Banken & Wirtschaft

What does a bank do?

Money is saved, invested and spent. Banks occupy the central position in the money cycle.
What is Bitcoin?
Banken & Wirtschaft

What is Bitcoin?

Bitcoin: huge hype, almost everyone knows the name. But what exactly is virtual money and what functions does it perform?
How much do I really earn?
Ausbildung & Beruf

How much do I really earn?

Gross is not the same as net
Which insurance do i need?
Veranlagung & Vorsorge

Which insurance do i need?

If you have suffered damage, you should not be forced to bear the cost on top of it. This is what insurance companies are there for. However, you should check closely which insurance you’ll actually need.
Who sets prices?
Alles ums Geld

Who sets prices?

Why do things cost what they cost? Many articles are getting more expensive, but some may become cheaper too. Why is that so?

FLiP News abonnieren

Updates zu Ausstellung, Programm & Events

Subscribe to FLiP News

Updates on exhibition, program & events