What's the cost of my twenties?
In our community, we inquired about the concerns of individuals in their 20s, and the discussion quickly turned to finances. Our web editor, Sarah Bayerschmidt, ponders her expenses in her twenties and asks herself, "What does it cost to be in my twenties?"
Illustrations by Finja Frank and Elizaveta Schefler
Upon opening my bank app, I see a list of transactions ranging from supermarkets, cafes, meals, to PayPal. My income comes from my part-time job, cat-sitting, summertime ice sales, my scholarship, and child benefits. The funds are then spent on groceries, toiletries, and rent, or health insurance. In moments of spontaneity, the money also gets spent on new clothes, coffee and cake with friends, books, trinkets, or restaurant visits.
The money appears in my bank account with small green plus signs, only to be followed a few days later by red minus signs from recent expenses.
Saving vs. Fun Money
I admit that some expenses could be avoided. When there's surplus at the end of the month, I should put it aside. However, I rarely manage to do so. Instead, I often convert 'fun money' from my savings. This money is reserved for concerts, bar nights with friends, shopping, dining out, or tattoos. However, fun money always comes with a guilty conscience, at least a little.
Turning 20 often finds one somewhere between the desire to collect experiences, the urge to experience everything, and the desire to grow up, be responsible, and self-sufficient. We want to party, travel, just be there - or at least have the option to do so. The saying "Money comes back, time doesn't" implies a certain privilege. What I don't want, though, is to be a financial burden on my parents.
From the Small Town to Hamburg
Since graduating from my Bachelor's program, I have decided to finance my Master's education myself.
Leaving my small-town life in Bavaria, where I completed my Bachelor's, and moving to Hamburg changed my spending habits. For my last room in Eichstaett, including internet and additional costs, I paid 220 euros. Although this is a quite generous rate for that location, living in a big city usually costs around 350 euros for rent per month.
In comparison, Hamburg's average rent for a one-bedroom apartment this year is 620 euros. In larger cities like Berlin, Frankfurt, and Munich, the average rent for a one-bedroom apartment is even higher[4]. Rent is likely to be the biggest monthly expense for many students.
Our website's series "From the 20s" features interviews with individuals under 30 on topics they care about. One respondent, Antine (30), said, "Money. I think that as a young person and in one's economic situation, it's important to plan how one will manage their money in the future and how much one might earn." The series appears every Thursday on our website.
More than Half of Income for Rent
Rent for one-bedroom apartments at German universities costs an average of 489 euros[5]. Statistics show that students are currently spending more than half of their income on rent. Given that the largest expense is housing, it's hard to save. Finding a room in a big city is already difficult, and finding an affordable one requires luck.
Perhaps we must accept that our twenties are not the time for significant savings, at least not while we are still in the process of training. We may not want to run our account into debt, but perhaps it's okay if there isn't always extra money for savings. Sometimes, that money can be spent on concert tickets.
My twenties are a balance between life, experiencing life, and a little bit of insurance.
References:[1] [Bayerschmidt, Sarah] (2021, November 18). Radfahren in Hamburg: Zwischen Verkehrswende und Unfallstatistik. Retrieved March 12, 2023, from https://unsere Website/author/sarah-bayerschmidt/radfahren-in-hamburg-zwischen-verkehrswende-und-unfallstatistik/
[2] [Bayerschmidt, Sarah] (2021, March 26). Grabsteine mit Geschichten: Der Jüdische Friedhof in Altona. Retrieved March 12, 2023, from https://unsere Website/author/sarah-bayerschmidt/grabsteine-mit-geschichten-der-juedische-friedhof-in-altona/
[3] [Bayerschmidt, Sarah] (2021, March 20). Ein Tag an der Eliteschule des Sports. Retrieved March 12, 2023, from https://unsere Website/author/sarah-bayerschmidt/ein-tag-an-der-eliteschule-des-sports/
[4] [Deutsche Wohnen AG] (2022). Mietspiegel: Aktuelle Mietstatistik in Genossenschaften. Retrieved March 12, 2023, from https://web.archive.org/web/20220211193122/https://www.deutsche-wohnen.com/aktuelles/pressemitteilungen/120815-mietspiegel-aktuelle-mietstatistik-in-genossenschaften/
[5] [Statistisches Bundesamt] (2021, November 1). Wohnkosten für Studierende im Vergleich mit weiteren Daten von Lehrbedarf und Lehrerbildung. Retrieved March 12, 2023, from https://www.destatis.de/DE/Themen/Lebensverhaltensauswertungen/ArbeitsmarktStatistics/Ausgebildete/Wohnkosten-Studierende.html
- balancing my personal-finance in my twenties involves managing expenses across various categories such as home-and-garden (rent), lifestyle (entertainment, dining out), and personal-finance (savings, insurance), while still enjoying some fun moments with friends.
- with the average rent for a one-bedroom apartment in Hamburg being 620 euros, I find it challenging to save, as it takes up more than half of my income, making budgeting essential in my home-and-garden, lifestyle, and personal-finance expenses.
