To organise student finances, you need three building blocks. The first is a current account with suitable conditions, the second a separate account for your reserve, and the third a calendar for deadlines and payments. A simple split at the start of the month is enough to make sure rent, insurance and the semester ticket are paid before you spend money on leisure. The budget itself is planned with a method of your own. Here the focus is on the everyday organisation behind it.
The most important points in brief
- A current account for students should have low account fees and an app that lets you set up payments quickly.
- The overdraft is an expensive loan and only suits short-term bridging. An emergency reserve in a separate account replaces it.
- Standing orders at the start of the month make sure fixed costs and your reserve are paid first.
- Some deadlines run only shortly after the start of your studies, such as the exemption from compulsory insurance (three months). Enter them into your calendar early.
Which current account suits your studies?
The right account depends on your habits. Before you open one, check these points in the bank’s price list:
| Criterion | What to look for |
|---|---|
| Account fees | Many banks offer reduced or waived basic fees for students. Ask up to what age and with what proof this applies. |
| Cash | Are there cash machines near you, and are fees charged at other machines? |
| Overdraft | How high is the credit limit, and which interest rate applies? Both are stated in the contract. |
| App and online banking | Standing orders, spending categories and push alerts for direct debits make it easier to keep an overview. |
| Second account | Can you keep a second account or instant-access savings account for your reserve with the same bank? |
How do you handle the overdraft?
The overdraft gives you some room, but it costs interest for every day you are in the red. Use it at most as a buffer for a few days before the next payment comes in. If your account is permanently overdrawn, take stock: which items cost more than planned, and where can you cut back? The guide on ways out of the overdraft (in German) describes how to get out of the red.
An emergency reserve makes the overdraft unnecessary. It covers expenses that are not in the plan, without you having to borrow money at interest.
How do you organise student finances: payments and standing orders?
A model with two or three accounts makes everyday life easier. All income flows into your main account. At the start of the month, standing orders move the fixed costs to a fixed-cost account and the reserve to a savings account. What stays in the main account is your money for everyday life.
Example: Jonas has 1,000 euros of income. At the start of the month he sets up these standing orders:
| Destination | Amount per month | Purpose |
|---|---|---|
| Fixed-cost account | 604.25 euros | Rent 400 euros, health and long-term care insurance 148.09 euros (student insurance, from age 23, additional contribution 2.9 per cent), semester ticket 37.80 euros, broadcasting fee 18.36 euros (rent and additional contribution are assumptions) |
| Reserve account | 100.00 euros | Emergency reserve |
| Main account (remainder) | 295.75 euros | Groceries, everyday life and leisure |
| Total | 1,000.00 euros |
How the 295.75 euros are divided between everyday life and leisure is shown in the calculation example in our article on budget planning. You will find a detailed way to keep track of your spending (in German) there. Bills that come up every six months, such as the semester fee, are divided by six and set aside monthly in the fixed-cost account.
How do you build an emergency reserve?
First work out what a month without income would cost. In Jonas’s example, the fixed costs of 604.25 euros are joined by an assumed 250 euros for groceries and everyday life, making 854.25 euros together. This amount is a first target for your reserve. At 100 euros a month you reach it after nine months, and at 50 euros a month after 18 months.
The money stays in a separate account that you can reach at any time and that is not tied to share price movements. A standing order straight after payday stops the amount disappearing into everyday spending. Only once the reserve is in place is the next step worthwhile. How to set up a savings plan (in German) is explained in a separate guide, and building wealth during your studies (in German) shows the right order of steps.
Which deadlines should you keep in view?
Many deadlines run only once and cannot be made up later. Enter them into your calendar with a reminder.
| Topic | Deadline or rule |
|---|---|
| Exemption from compulsory insurance (switch to private health insurance) | Application within three months of the start of your studies. The decision applies for the entire course of study and is irrevocable. |
| Study start grant (1,000 euros) | Only applies if your family received social benefits in the month before you start studying and you start before your 25th birthday. Application only digitally via BAföG Digital, shortly after the start of the semester. Your BAföG office gives the date (Studierendenwerke, in German). |
| Family insurance | Total income up to 565 euros a month, or 603 euros for a pure mini-job. Age limit of 25 during studies. |
| Student health insurance | Ends at the end of the semester in which you turn 30. An extension requires a reasoned application. |
| Broadcasting fee, exemption | Exemption on application to the Beitragsservice, for example if you receive BAföG and have your own flat. Backdating is possible for up to 3 years from the date of application. |
| Tax return | You may file voluntarily for four years back, so for 2025 until 31.12.2029. If you are required to file, a late-filing surcharge of at least 25 euros per started month applies. |
| BAföG repayment | Starts five years after the end of the maximum funding period. The instalment is 130 euros a month, and the cap is 10,010 euros (BAföG FAQ, in German). |
| Semester fee and re-enrolment | Each university sets its own deadlines. The date is in your student portal. |
What changes on 1 January 2027?
Several values that affect your budget change at the turn of the year. Some have been decided, others are still planned.
| Item | 2026 | 2027 | Status |
|---|---|---|---|
| Minimum wage | 13.90 euros | 14.60 euros | decided |
| Mini-job threshold | 603 euros | 633 euros | decided |
| Germany ticket | 63 euros | 66.80 euros | decided |
| Germany semester ticket | 37.80 euros | 40.08 euros | decided |
| Income limit for family insurance | 565 euros | 590 euros | planned |
| Broadcasting fee | 18.36 euros | 18.64 euros (recommendation of the KEF) | planned |
According to the government draft, the BAföG housing allowance is to rise from 380 euros to 440 euros on 1 April 2027. This has not yet been passed either.
Which apps help with organising?
Apps take over routine tasks: they assign transactions to categories, remind you of due dates and show your current balance. When choosing one, check which account data the app may access, where it is stored, and whether the functions you need are included in the basic version. Our article on apps for student life (in German) lists a selection.
Frequently asked questions
Do I need my own current account as a student?
Yes, your own account makes organising easier. BAföG, wages and maintenance can be clearly assigned to it, and you set up standing orders yourself. Before you open one, compare account fees, the cash machine network and the overdraft in the bank’s price list. An account for you alone keeps your payments separate from those of your parents.
How much should I have as an emergency reserve?
There is no fixed figure. A sensible first target is the cost of one month, which in the example above is 854.25 euros. How much you save beyond that depends on your situation, for example whether you get support from your parents and how secure your income is.
When does my family insurance end during my studies?
Family insurance applies until your 25th birthday if you are studying. It ends earlier if your total income exceeds 565 euros a month (603 euros for a pure mini-job). After that, student health insurance usually follows. Your health insurer can clarify specific cases.
Do I have to file a tax return as a student?
Not automatically. An obligation can arise, among other things, from income without tax deduction above 410 euros a year, or from a request by the tax office. You may file voluntarily for four years back. Whether that is worthwhile for you is a question for the tax office or a tax adviser.
What to do now
- Check the account fees and overdraft of your current account, and switch if the conditions do not suit you.
- Open a second account for your reserve and set up a standing order at the start of the month.
- Move your fixed costs by standing order at the start of the month to a separate account, apart from everyday money.
- Enter the deadlines from the table into your calendar, starting with the ones that run for the shortest time.
Related articles
- Budget planning during your studies: a monthly budget in three steps (in German)
- Avoiding debt during your studies: typical traps and ways out (in German)
- Building wealth during your studies: how to start with small amounts (in German)
- Apps for student life: the best helpers for your studies (in German)
Last updated: October 2026. This guide is general information, not individual advice. The German version is authoritative.
