Building savings contract useful for young people? 6 tips for young savers

Building savings contract for young people – Have you ever considered taking out a building savings contract? Especially for young people, this can be a good way to save money in the long term for their first home. But when should you start saving? In this article we look at the topics of young home savings, youth bonus, age recommendations and 6 valuable tips for young people to consider when taking out a home savings contract.

If you want to know which home savings provider offers the best conditions, you can immediately compare the current offers in the Immobilien-Erfahrung home savings calculator.

Building savings contract for young people: saving for housing projects

Whether a building savings contract is interesting for you as a young person depends on various factors, such as your financial possibilities and future plans. A building savings contract can be useful if you plan to buy a property or carry out renovation work. By taking out a building savings contract, you can save money over a fixed, longer period of time that you can use for these purposes.

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Home savings for young people at a glance:

  • Saving early for housing projects later
  • Also useful if there are no concrete plans
  • Financial cushion for unforeseen events

A building savings contract can also be useful if you don’t have any concrete plans yet, but you want financial security for the future. By taking out a building savings contract, you can build up a financial cushion that provides financial security in the event of unforeseen events.

Youth bonus: Offers and discounts

Some Bausparkassen offer special rates or discounts specifically for young customers, known as “youth bonuses”. These offers may vary from one Bausparkasse to another and may include, for example:

  • Increased repayment subsidies when contracts are signed
  • Lower minimum deposit amounts
  • Special conditions for housing finance
  • Discounts on other insurances

However, there is no universal youth bonus in Germany. It is advisable to compare and check the various offers and providers.

Age recommendation: building savings under 18 years of age

As a rule, you can take out a home savings contract from the age of 18. However, there are also offers from building societies that are aimed at young people under 18. In such cases, the contracts are usually signed by the parents or guardians. The parents also pay the premiums.

There are several reasons why it can make sense for parents to take out a building savings contract for their children.
Reasons for concluding a building savings contract before the age of 18:

  • Support future planning
  • Financial support
  • Build a solid financial base
  • Lower repayment rates for later projects
  • Formation of savings and redemption discipline

It can be difficult for young people to save regularly and think about the future. A home savings contract can help develop a savings and repayment discipline early on and get them used to regular savings behavior.


6 tips for young building savers and those who want to become one

If you want to take out a home savings contract, there are many things you should consider. In this checklist, you’ll find our top 6 tips for young home savings customers and those interested in home savings.

Our tips:

  1. Compare conditions before signing
  2. Date of completion
  3. Consider residential earmarking
  4. Consider contract duration (long-term commitment)
  5. Compare costs of the contract
  6. For questions: Advice from experts

Conditions: It is important to compare the offers of different building societies to find the best offer for your own situation. In doing so, the conditions such as redemption subsidies, interest, acquisition and administration costs as well as the services offered should be taken into account.

Time of conclusion: It is advisable to conclude a building savings contract early in order to benefit from the advantages of long-term savings and repayment.

Earmarking: The building savings contract is usually tied to a specific purpose, primarily for financing a home, it is important to ensure that the contract meets one’s wants and needs.

Contract duration: Building savings contracts usually have a longer duration of 15-25 years, it is important to note that you are committed to paying monthly contributions in the long term and take into account possible changes in your financial situation.

Cost: It is important to fully understand the risks and costs of the contract to ensure that you benefit financially from the contract in the long run.

Advice: It is advisable to seek advice from a financial advisor before taking out a building savings contract to ensure that the contract meets your needs and that you understand all the risks and costs.