If you are planning to settle in Germany, it may be advantageous for you to have prior knowledge about home economics and finance. What you need to know about home economics and finance in Germany can be categorised under three headings.
Cost of Living
The cost of living in Germany is more favourable than in other developed European countries. When it comes to living costs, the most prominent topics can be listed as follows:
- The average monthly cost of a family of 4 people, excluding rent, is 3,173 Euros.
- The monthly cost of a single person, excluding rent, is around 930 Euros.
- Although it varies from city to city, a person can easily survive with a minimum monthly budget of 2,500 Euros. For students, living costs in Germany are much lower if some details are taken into consideration.
- In Germany, basic health care is provided free of charge by the state. If your gross annual income in 2025 is more than 73,800 euros, you can consider taking out private health insurance.
- Depending on your lifestyle, spending time outdoors may require a budget of between 50 and 150 Euros per person.
- Package prices for smartphone usage (calls + 10 GB or more internet) are between 16,99-39,95 Euros per month.
- Education fees in Germany are covered by the state. Private school prices are between 15 and 20 thousand Euros.
Market Prices
It is possible to list the things to know about grocery prices in Germany as follows:
- To meet your daily grocery needs in Germany, you can choose affordable chain grocery stores in many cities.
- You can also turn to small markets and farmers’ markets to get a price advantage.
- Depending on the city you live in, the average monthly grocery cost of a family in Germany is 550 Euros. For a single person, this amount is around 200 Euros.
Rent and Other Expenses
In Germany, the largest share of the household finances is accounted for by rents and additional costs. The things to know about this subject, which can be summarised under the heading of housing costs as a whole, are as follows:
- Accommodation costs are generally high in the big cities in the south of the country, especially in Munich, Stuttgart and Frankfurt. In less populated cities in the east, such as Leipzig and Dresden, the need for accommodation can be met at more reasonable prices.
- If you are going to live in Germany for study purposes, you can choose economical options such as renting a room or staying in a dormitory. Dormitory costs are around 300 Euros on average. For comfortable and modern options, you may need a budget between 400 and 500 Euros.
- For a small one-room house, you can allocate around 800 to 1,000 Euros for accommodation expenses.
- If you are travelling to Germany with your family or need a bigger house, you will need to spend more than 1,000 Euros for rent.
- In Germany, especially in densely populated cities, you may have to queue to find a house or apartment for rent. For this reason, you should start looking for accommodation in Germany at least 2-3 months before travelling to the country.
The following details about rent and other expenses in Germany are also important:
- The process of renting a house in Germany is shaped by 3 different concepts. These concepts; Befristet – Temporary, Unberfristet – Indefinite and Zwischenmiete – Periodic.
- If you want to rent an apartment in Germany, you need to know the concepts of hot and cold rent. Hot rent is the system where all bills and goods are included. Cold rent is only the monthly net residence fee of the house/apartment.
- For an 85 square metre apartment, the monthly basic costs (electricity, heating/cooling, water and garbage) vary between 170 – 425 Euro.
This content is provided solely for general informational purposes and does not encompass all details. Maxi Digital GmbH disclaims any responsibility for ensuring the currency and accuracy of the content. It is recommended to refer to official sources for the most current and reliable information.
