People in Germany save more for holidays than anything else

When it comes to saving, some people do it to buy a house or car, or they put away money for retirement or to purchase a larger consumer item, such as a home cinema system.

For people in Germany, saving for a holiday is the top priority. A study by the price comparison portal Idealo, which was made available to dpa in advance, showed that 42% of people in Germany save money so they can travel - far more than they save for anything else.

The survey found that consumers also frequently save to build up their financial reserves (39%), for retirement (32%) or for larger purchases such as televisions or bicycles (28%). One in six would like to set money aside but says they are unable to do so. Nearly two-thirds worry they will not be able to make ends meet with their money. In the past year, 42% had to dip into their savings.

For the study, around 2,000 people aged between 18 and 64 who shop online were surveyed in May by the market research company Kantar in a representative poll.

Older people save on clothing, younger ones on food

In times of rising prices, many consumers in Germany continue to hold on tightly to their money.

Savings are most often made on clothing and accessories, as well as on visits to restaurants and cafés, the survey showed. Half of respondents said they cut back in these areas.

Many also hold back on other consumer goods, with hobby and leisure items such as tennis rackets or yoga mats (41%) and electronics (40%) frequently mentioned.

The hospitality industry is facing tough times, as many people in Germany are saving and consuming cautiously.

Generational differences

The data showed that spending habits differ by age. Baby boomers, or those over 60, are more likely to save on clothing purchases than younger people from Generation Z, aged 18 to 30.

Younger people, on the other hand, are more likely to cut back on groceries, while baby boomers tend to save on dining out.
For young people, fashion is an important expression of their personality and individuality, said Idealo chief executive Mark Dekan.

"That's probably why they are less likely to save in this area. They also tend to go out more often and explore new restaurants. These expenses are likely saved elsewhere," Dekan said.

Frugality hits cinemas

In addition to the hospitality sector, other cultural and leisure offerings such as cinemas, concerts and festivals are heavily affected by the poor consumer sentiment.

According to the survey, 46% of respondents save in these areas, with nearly as many cutting back on visits to clubs and nightlife.

Books and media, drugstore and cosmetic products, as well as health and sports services such as gym memberships or yoga classes, are less frequently mentioned.

Consumers use various methods to reduce their expenses, Idealo reported. The most common is comparing prices from different providers, with 64% stating they do this. Many also pay more attention to special offers (56%) or use discount coupons (46%).