Top 4 Reasons Why We Should Adopt the German Saving Mindset

Germans are renowned to be highly good savers, to the point that some believe that their coat of arms, which contains an eagle, should be altered to a piggy bank.

Regardless of interest rates, Germans are thought to be quite frugal whenever it comes to saving.

Saving is seen as a national legacy and an important virtue in Germany.

This is owing to the country’s hyperinflation, wars in which they participated, tyranny, and depression.

The narrative of institutionalized money accumulation originates with the industrialization process.

As the population grew in Germany, hardship became more prevalent, banks were portrayed as beneficent institutions created to assist the poor in helping themselves.

Employees who laid aside their money were deemed more rational than those who squandered or wasted it.

The International Savings Banks Institute, on the other hand, launched World Thrift Day in Germany to teach Germans basic financial education.

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With that in mind, consider some of the reasons why we should embrace the German saving culture.

  1. History of saving in Germany.

Saving has always been an important aspect of German culture, which has a long and rich history.

In Germany, saving is currently seen as both a custom and a virtue.

In 1778, the first investment bank was created in Hamburg.

By 1836, the German Confederation had approximately 300 of these investment banking firms.

Encouraging Germans to put their hard-earned money into investments in exchange for interest.

The German History Museum in Berlin has opened a small display highlighting Germany’s concern with conserving money.

“Saving – History of a German Virtue” may have a corny title, but it provides an intriguing insight into a deeply established national obsession.

Germans are the world’s greatest savers because of their superb heritage.

According to OECD data, households saved an average of 8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of their disposable income during the preceding two decades.

  1. Embody saving through thick and thin

In Germany, saving has indeed been linked to bad times.

Germans were urged to purchase war bonds in order to aid the nation throughout World War I.

The savings mindset survived postwar privation and the Weimar Republic’s bankruptcy.

This even after their funds were depleted in 1923 such that the German currency turned obsolete.

When Adolf Hitler came to be in power in 1933, he blasted Germans with disinformation that austerity and saving were patriotic duties.

He went on to say that this might be used to oppose “Jewish finance capital.”

Savings increased and were utilized to fund the war effort, while Jewish individuals had their savings confiscated by the Nazi authority.

Even the present low-interest rates really haven’t deterred the Germans from saving.

And it is for this rationale that Germans will always preserve and save.

  1. Teach young children how to save.

According to research, financial education is related to financial wellbeing.

Who wouldn’t want their kids to be happy, financially informed, and well-prepared for the future.

Children in Germany are not subjected to the type of explicit indoctrination that was common in previous eras.

German savings institutions are constitutionally expected to enhance and encourage saving, and they do so immediately to kids.

This is being done with the help of local school officials.

Six-year-olds are frequently seen returning from school holding a bright red folder from the local bank packed with imaginary money to teach them how to save.

  1. Embody the saving culture to a state level.

Saving benefits not just individuals and companies in Germany, but also government budgets.

A respectable state, on the other hand, does not live beyond its means and saves money wherever feasible.

State savings are crucial to the German pro-austerity narrative, which has affected not just domestic but also most European policies.


According to experts, the German culture of saving is not a mere behavior that was declared constitutional by policy change, but rather a habit that has been developing for over three centuries.

Germany is one of Europe’s most overbanked nations.

There are several Sparkassen and over a 1000 co-operative banks in Germany, many of which have only one or two branches.

Despite the fact that the world’s interest rates are negative, leaving many German households impoverished, Germans continue to save money.

We should learn a few things from the Germans so that we can realize the benefits of saving.