Building wealth as a student works in five steps: an overview of your budget, an emergency fund, the most important insurance, a small savings plan and regular adjustments. To start, an amount in the double-digit euro range is enough, because consistency and time count for more than the size of the monthly rate. If you put aside €50 a month for five years, you have paid in €3,000. How this money develops on the stock market cannot be predicted.
The key points in brief
- The sensible order is: clarify your budget, build an emergency fund, check your insurance, then start a savings plan.
- The first target for your emergency fund is the cost of one month. In the example below, that is about €854.
- If you receive BAföG, you may hold assets of up to €15,000 until you are 29. Your parents’ assets do not count.
- Prices fluctuate. A savings plan on the stock market offers neither a guarantee nor a fixed return, but you can adjust the rate.
- Many fixed costs are smaller than you might expect. The Deutschland semester ticket costs €37.80 a month in 2026, the regular Deutschlandticket €63.
Building wealth as a student: in which order?
The overview comes first, the savings plan last. If you invest straight away and have no cash reserve, you may have to sell shares when your laptop breaks, possibly at a low price. The following order prevents that.
| Step | Task | Done when |
|---|---|---|
| 1 | Clarify your budget | You know your income and what one month costs. |
| 2 | Avoid expensive debt | No open instalment purchases or overdrawn accounts. |
| 3 | Build an emergency fund | A reserve for unexpected costs sits in a separate account. |
| 4 | Check your insurance | Health insurance and liability insurance are sorted out. |
| 5 | Start a savings plan | A fixed rate runs automatically and you can keep it up over the long term. |
Before you set amounts, a concrete goal helps, for example a semester abroad or the rental deposit after your studies. You will find ideas in our article on financial goals while studying.
How much money is left over for saving?
Only an honest look at your fixed costs shows that. Rent is a big part of it: according to the university city scoring 2026, a shared flat costs €510 a month on average across Germany, and €850 in Munich. In 76 of the 90 university cities examined, rent is above the BAföG housing allowance of €380 (Studierendenwerke).
Other items are often forgotten. Student health insurance costs childless students aged 23 and over around €148 a month including long-term care insurance, if the health insurer charges the average additional contribution of 2.9%. The broadcasting fee is €18.36 a month. The semester ticket may also apply.
Example: Jonas, 23, is studying for a bachelor’s degree and is in student health insurance. Assumption: he has €1,000 a month available, from maintenance and a part-time job combined. Rent including utilities, groceries and everyday expenses are our own assumptions.
| Item | Amount per month |
|---|---|
| Income | 1,000.00 € |
| Rent including utilities (assumption) | 400.00 € |
| Health and long-term care insurance (average additional contribution 2.9%) | 148.09 € |
| Deutschland semester ticket | 37.80 € |
| Broadcasting fee | 18.36 € |
| Groceries and everyday needs (assumption) | 250.00 € |
| Remaining | 145.75 € |
Jonas spends €854.25 a month on fixed costs and everyday needs. Of the remaining €145.75, he sets aside €100 and the other €45.75 stays for leisure and surprises. You can find out how to cut your own costs in our guide to reducing household costs.
How big should your emergency fund be as a student?
There is no fixed rule of thumb. A sensible first target is the fixed costs and everyday needs of one month, which for Jonas is €854.25. With a monthly rate of €100, he reaches that after nine months. After that, you can build the reserve up further if you need to.
The money belongs in a separate account that you can reach at any time and that does not depend on price fluctuations. Typical reasons to draw on the emergency fund are a broken laptop, a back payment for utilities or a trip to an oral exam. Without a reserve, such costs quickly end up on instalment plans or in an overdraft. Our article avoiding debt as a student shows how to sidestep traps of this kind.
Which insurance do you need before you invest?
Three areas should be settled before you start a savings plan.
Health insurance
Up to age 25, students are usually covered by their parents’ family insurance, as long as their total income does not exceed €565 a month (€603 for a pure mini-job). If you are older or earn more, you are usually in statutory student health insurance. If you want to switch to private health insurance by being exempted from compulsory insurance at the start of your first degree, you must apply within three months of starting your studies. The decision applies to the whole course of study and cannot be reversed.
Private liability insurance
Children are often covered free of charge under their parents’ liability insurance, as long as they are unmarried and in a first training or a first degree. The exact conditions depend on the tariff, so ask your parents to check their contract. Some providers limit the cover to a certain age.
Occupational disability insurance
Occupational disability insurance can already be taken out while studying. The premium depends on age, health and choice of occupation. Answer all application questions completely. The statutory pension for reduced earning capacity requires a waiting period of 5 years and 3 years of compulsory contributions in the last 5 years before reduced earning capacity occurs (source: German Pension Insurance).
How do your assets affect your BAföG?
If you receive BAföG, you should know the asset allowance. It is €15,000 up to age 29 and €45,000 from age 30. Your parents’ assets do not count (BAföG FAQ from the Studierendenwerke). If your assets exceed the allowance, the BAföG office checks how much is counted.
The earnings limit for part-time work is worth a look too: your own income up to €603 gross a month has no effect on BAföG. If you earn more, your funding is reduced proportionally.
How do you start a savings plan as a student?
A savings plan invests a fixed amount at regular intervals. An ETF, an exchange-traded index fund that invests in many companies at once and so spreads the risk, is often chosen for this. The risk of loss remains: prices fluctuate, and the value of your shares can fall below the amount you paid in. This article is not investment advice. You will find a detailed guide in our article on the ETF savings plan while studying.
- Set the rate: Choose an amount you can also pay in a tight month.
- Compare providers: Pay attention to custody fees, costs per savings plan execution and the range of savings plans on offer.
- Choose an investment: Broadly diversified products spread the risk across many companies. Check the ongoing costs and the investment strategy.
- Submit an exemption order: This keeps your capital gains tax-free up to the allowance. Your provider will tell you the current amount.
- Keep going: If money gets tight, pause the rate first. Selling shares is the second step.
With €100 a month, €6,000 has been paid in after five years. What it grows to depends on how prices develop. Other ways to invest are presented in our article investing money as a student.
Where can you save money as a student?
Before you earn more, it pays to look at what you already spend.
- Semester ticket: The Deutschland semester ticket costs €37.80 a month in 2026 (€226.80 per semester), the regular Deutschlandticket €63. Where the semester ticket is offered, you save €25.20 a month, or €302.40 a year.
- Broadcasting fee: If you receive BAföG and do not live with your parents, you can apply to be exempted. At €18.36 a month, that saves €220.32 a year.
- Studienstarthilfe: A one-off grant of €1,000 for first-year students under 25, if the person or household received certain social benefits in the month before starting their studies. The application is made digitally via BAföG Digital, and the deadline ends shortly after the semester starts (Studierendenwerke).
- Deutschlandstipendium: €300 a month, awarded by the university on the basis of performance and commitment. Each university sets its own deadlines.
Frequently asked questions
How much should I save each month as a student?
There is no fixed percentage. Subtract your fixed costs and everyday needs from your income, and you will see what is left. Even small amounts count if you set them aside regularly. In the example above, Jonas has €145.75 left and sets aside €100 of it.
Is a savings plan worthwhile if I receive BAföG?
It is possible. Up to age 29, your assets may amount to €15,000 without affecting your BAföG. Savings plans with small rates usually stay well below that. As soon as your assets approach the limit, ask the BAföG office.
Do I have to build an emergency fund before I invest?
That is the recommended order. Without a reserve, you may have to sell shares when unexpected costs arise, even if prices are low at that moment. One month’s costs are an achievable first target. Only then does the savings plan begin, and you can keep building the reserve alongside it if needed.
How much can I earn on the side without reducing my BAföG?
Your own income up to €603 gross a month has no effect on BAföG. At the minimum wage of €13.90 an hour, that corresponds to up to 43 working hours a month (43 × €13.90 = €597.70). If you earn more, the funding is reduced proportionally.
Your next steps
- Write down your monthly income and fixed costs and work out what one month costs.
- Set up a separate account for your emergency fund and set a fixed rate.
- Clarify your health insurance and ask your parents about liability insurance.
- Once the emergency fund is in place, start a savings plan with a rate you can keep paying over the long term.
If you want to go through your insurance cover while studying, the Academycon homepage shows the way to advice.
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Related articles
- ETF savings plan while studying: how it works step by step
- Investing money as a student: first steps for beginners
- Avoiding debt as a student: typical traps and ways out
- Setting and reaching financial goals as a student
Last updated: October 2026. This guide is general information, not individual advice. The German version is authoritative.
