German youngsters save more for setbacks

BERLIN (Reuters) - Germany's young people have put much more money aside for unexpected setbacks this year than in 2015, according to a new survey by the Banking, the German Banking Association. A survey among young people in the age category of 14 to 17 years shows that most young people save to be able to make large purchases (45%), but that they are also more likely to put money aside to absorb setbacks (19%). They are also more concerned than in 2015 with wealth accumulation (16%) and saving for their retirement (5%).

If we compare this year's figures with those of 2015, we see that young people have become more aware of the need to put money aside for later. In the age category of 18 to 24 years, too, we see that there is currently much more saving for capital accumulation and retirement than in 2015. These results are striking, when you consider that the economic situation in Germany is currently quite favorable with low unemployment and strong growth.

One possible explanation for this trend is that young people are more concerned about economic and political uncertainty. It is also conceivable that they put more money aside to be able to buy a house or to build up a pension independently. Another possibility is that the growth of the economy makes it easier for young people to find a part-time job and therefore simply have more savings available for purposes other than consumption.

Young people in Germany are more likely to put money aside for setbacks (Source: Banking)