World Savings Day 2025: Saving will be a challenge for young people!

World Savings Day 2025: Saving will be a challenge for young people!

October 30, 2023 is just around the corner and brings with it the 101st World Savings Day. An occasion that not only celebrates the tradition of saving, but also puts the spotlight on the importance of financial preparedness. The Volksbank in Südwestfalen has come up with something special for this occasion: from October 29th to 31st, a colorful program will be organized in 27 branches that is intended to appeal to young savers. Here visitors can expect a mix of gifts, games, sweets and decorations - a real attraction for the younger generations.[localdirect.de]

Board spokesman Roland Krebs emphasizes the differences in savings behavior and financial flexibility of customers in the Märkisches Kreis. Particularly noteworthy is the growing importance of creating reserves, which is becoming increasingly relevant against the backdrop of current economic challenges. A forecast by the Federal Association of German Volksbanks and Raiffeisenbanks (BVR) shows that the savings rate of private households will be 10.4% of disposable income in 2025 and 10.6% in 2026.[verbandsbuero.de]

Challenges for young savers

So what is the saving behavior of Germans, especially among the younger generation? What is striking is that 14 to 19 year olds only save a third and 20 to 29 year olds just half of the required amount. This shows that although savings awareness is growing among young people, financial scope is limited. This development makes qualified advice and financial education even more important. Better decisions can only be made with the right knowledge about interest rates, risks and returns.[localdirect.de]

In recent years, German savers have reacted cautiously to the interest rate turnaround. The volume of time deposits and pension securities increased by over 50% in 2023 compared to the previous year. The decline in the period of low interest rates has encouraged an openness to stocks and investment funds - an interesting twist in German investment policy. The BVR found that savers are diversifying their portfolios and are increasingly interested in return-oriented investments.[bvr.de]

Financial education and future prospects

An important message that World Savings Day aims to spread is that of financial education, which should be accessible to everyone. Planned national programs are aimed at supporting those who want to save and creating simpler pension models. Tax incentives could also help to further improve savings behavior. The focus here is often on social background and the associated inequalities, as financial knowledge varies greatly.[verbandsbuero.de]

Finally, just the motto of World Savings Day 2023: “Racetrack & Pole Position”. A call to everyone to take a look at their own financial future and discover the benefits of saving. On October 30th, children, parents and grandparents can get to know the variety of offers in the Volksbank branches. Information and special advice on savings options for children are of course also available.[localdirect.de]