How to manage finances as an international student in Germany

Studying abroad is an exciting adventure, but managing your finances in a new country can be a challenge. With its vibrant culture, world-class education, and reasonable cost of living, Germany is a popular destination for international students. However, proper financial planning is key to making the most of your experience without breaking the bank. Today we are sharing with you a guide to help you manage your finances as an international student in Germany.

Before you arrive, it is important to have a clear understanding of the cost of living in Germany. According to DAAD (German Academic Exchange Service) statistics, the average monthly living expense for a student in Germany is 842 EUR per month. That includes rent, travel expenses, food, clothing, learning materials, health insurance, phone, internet, radio and TV, and recreational activities. This is far lower than other countries in Europe, including the UK, Switzerland, Norway, etc.

Draft a budget that outlines your expected monthly income and expenses. Your budget should cover:

• Rent: Typically the largest expense. Student accommodation can be cheaper, but you may need to apply early.
• Food: Budget for groceries and dining out.
• Transportation: Consider public transportation costs or a student discount card.
• Utilities: This may include electricity, water, and internet.
• Health insurance: Mandatory for all students, with rates varying based on coverage.

Having a local bank account simplifies transactions and helps avoid foreign transaction fees. To open a bank account in Germany, you should provide the following documents:

• Completed application form.
• Passport and German residence permit.
• Proof of registration/address.
• Initial deposit (the minimum depends on the bank you choose).
• Proof of income/employment.
• Proof that you are a student.
• SCHUFA credit rating (some banks require it).

Look for scholarships and financial aid opportunities offered by universities, government programs, or private organisations. Websites like DAAD offer valuable resources for finding funding options. Some of the more well-known scholarships in Germany include:

• The Deutschlandstipendium: Private organisations participating in the Deutschlandstipendium contribute up to 150 EUR per month per student, while the German government matches this amount, making up a total of 300 EUR per month for scholarship recipients. The funding covers two semesters, but in some cases, it can cover the entire duration of your studies.
• DAAD scholarships: Since its establishment in 1925, DAAD has helped fund and counsel millions of international students who come and leave Germany. In 2016 alone, over 131,000 German and international scholars funded their education with DAAD grants. 
• Erasmus+: The largest European student exchange programme, Erasmus+, allows you to study in Germany for a few semesters or the entire duration of your studies. Some German universities take part in Erasmus exchange projects, giving you the chance to finance your studies in Germany completely or cover your living expenses.

As an international student in Germany, you are allowed to work part-time during your studies. Under the new law, which came into effect on March 1, 2024, international students have an increased annual working limit from 120 to 140 full days or 240 to 280 half days. As an alternative, students can work up to 20 hours per week. The Federal Office for Migration and Refugees (BAMF) announced that international students are now permitted to work more days per year and work two jobs. Look for jobs that are flexible and align with your study schedule, such as tutoring, working in a café, or on-campus positions.

Before leaving to study abroad, set up a meeting with your home bank. Ask them what the best options are for using money while in another country. Ask about your bank’s fees for international transactions. Small charges can add up to a lot over time. Travel rewards credit cards may have the best exchange rates. International students in Germany can also look into student credit cards for when they do not have credit. If you need to exchange money, look for favourable exchange rates and avoid high fees.

As of January 2024, as a student, you can earn up to 520 EUR per month without having to pay taxes to the German state. If you earn more than that, your employer must pay taxes and social security contributions. There is also an annual tax-free allowance for students. Since January 2024, this is expected to be 11,604 EUR. Students often benefit from tax exemptions or lower rates, but it’s important to be aware of these rules to avoid surprises.

Many places in Germany offer student discounts. Always carry your student ID and ask about discounts in shops, museums, and public transportation. Student cards often provide access to discounted cultural and recreational activities.

At PFH we provide students with a Culture Semester Ticket, which offers free or significantly reduced entrance fees to numerous events in many cultural facilities in Göttingen. We also provide students with a Bahnsemesterticket, which applies to most train connections in Lower Saxony and some routes in northern Hesse. 

List of all participating cultural facilities included in the PFH Culture Semester Ticket.
Details and list of connections covered by the PFH Bahnsemesterticket. 

Germany has a range of affordable and high-quality goods and services. Explore local markets for fresh produce and check out student-friendly venues for dining and entertainment. Avoid unnecessary expenses and focus on building a frugal yet comfortable lifestyle.

If you are struggling to manage your finances, seek advice from your university’s financial aid office or international student services. In most cases, they can provide guidance tailored to your specific situation.

Managing finances as an international student in Germany involves careful planning and budgeting. By understanding your expenses, taking advantage of student benefits, and exploring financial aid options, you can focus on your studies and enjoy your time abroad. Germany offers a rich cultural experience and a high-quality education, making it a worthwhile investment for your future.

Thanks for taking the time to read our blog post on how to manage finances as an international student in Germany. If you are thinking about studying abroad in Germany, take a look at our academic programmes.

At PFH we make sure you receive a high-quality education that makes balancing your work and studies easier!