Students and money: how to keep an eye on your finances

Getting a degree can be an enriching experience, but it does cost money. Rent, food and study materials can add up quickly. According to the Deutsches Studierendenwerk (German student’s union) you’ll need, on average, 990 euros per month to support yourself while you’re studying. And not everyone aiming for a degree can rely on their parents for financial support. So what options are available for financing your studies?

Start by recording all your income and outgoing expenses

Before students look at options for financing their studies, they should start with an overview of their finances. What sources of income do they have and what expenses will they have to pay? The following questions can help to estimate how much money you will need to pay for the cost of living, your degree and free time activities: 

• How much support can you expect to receive from your parents each month?
• How much will it cost to rent shared accommodation or a room in a student residence?
• How much can you expect to spend per month for food, transport, electricity, heating and insurance?
• What costs can you expect in terms of semester fees, as well as purchasing a laptop, books and other supplies?
• How much money will you need for a mobile phone, streaming services, clothes and other personal expenses? 

This will give you a better idea of how much money you need each month and which expenses you may be able to adjust. If you will not be getting enough money from your parents to cover your expenses while at university, there are a variety of options for earning more income or improving your budget.

Apply for BAföG

If your family cannot afford to support you, BAföG (federal student grants and loans) can help you pay for your studies. Students who are no longer living with their parents and are not eligible for health insurance via their family are entitled to up to 992 euros each month. Those under 25 years of age from low-income families are also eligible to receive Studienstarthilfe (help starting your degree). This is a one-time grant of 1,000 euros, which can be used to purchase a laptop or educational supplies.

What makes BAföG attractive: half of the funding is provided as a grant and does not have to be paid back. The other half is provided as an interest-free loan, and the student is only required to pay back 10,010 euros of the total loan amount.

And the good news is that students can also earn up to 603 euros each month without losing any of their BAföG.

Casual work while studying: minijob or student job 

Many students in Germany work during their studies. With a minijob, a special legal form of job in Germany, students can earn up to 603 euros per month. But don’t forget one-off payments are also included in this total amount. So, if holiday pay or your Christmas bonus takes you over the limit of 603 euros then the job is no longer considered a minijob.

Another option is a job as a working student. This would allow you to work up to 20 hours per week alongside your (full time) study course. But be careful if you are receiving BAföG, as you are not allowed to earn more than 7,236 euros during the grant period (usually two terms). If you do end up earning more, the amount of money you receive from BAföG will be reduced or eliminated entirely.