Personal Finance in Germany
This guide teaches the principles of Germany's financial system for immigrants with professional backgrounds who are starting from zero in the German context. You'll find explanations of bank accounts, taxes, insurance, pensions, and investments — not general finance theory, but the specifics of the German system.
This guide provides financial education (Finanzbildung — teaching principles), not financial advice (Finanzberatung — individual recommendations). We explain how the system works and what criteria to use when evaluating options, but do not recommend specific products or tariffs.
This content does not replace consultations with licensed professionals: financial advisors (regulated under §34f and §34h of the Trade Regulation Act [1]), tax consultants (Steuerberater — certified tax advisor), or lawyers (Rechtsanwalt — attorney).
Who This Guide Is For
You're a professional with higher education and understand complex systems. The German financial system requires understanding local institutions, processes, and terminology. Information in Russian is either absent or ignores immigrant-specific issues.
This guide explains the German system for those who start not from zero experience, but from zero local context: without credit history (Schufa — credit bureau), without knowledge of local institutions, often without the language.
Start Here
First steps for those who recently moved:
| Step | Topic | Why |
|---|---|---|
| 1 | Checking account (Girokonto) | Without it you can't receive salary or pay for housing |
| 2 | SCHUFA | Credit history affects rental and contracts |
| 3 | Emergency fund | Priority #1 before any investments |
| 4 | Liability insurance | €50/year, protection from catastrophic expenses |
Quick Wins
High-impact decisions with minimal effort:
| Action | Potential Benefit | Effort |
|---|---|---|
| Kindergeld | €259/month per child [2] | One application |
| Tax return | €1,063 average refund [3] | A few hours once a year |
| Tax class optimization | Higher net now or higher benefits later | One application to Finanzamt (tax office) |
Kindergeld (child benefit) for one child is €31,080 over 10 years [2]. Tax returns — another €10,000+ [3]. These amounts significantly impact family wealth.
Sections by Topic
| Section | Description |
|---|---|
| Banking & Accounts | Girokonto, savings accounts, SCHUFA |
| Taxes | Income tax, tax classes, tax returns |
| Insurance | Mandatory and important insurance |
| Retirement | State, corporate, and private pension |
| Investing | Depot, ETF, stocks — when the foundation is built |
| Government Benefits | Kindergeld, Elterngeld, Wohngeld |
| Budgeting | Planning methods, emergency fund |
| For Freelancers | Registration, taxes, insurance for Freiberufler |
| AI & Finance | Using AI tools to learn German finance |
What Makes This Guide Different
- Immigrant context — we account for the fact that you start without credit history, without understanding local institutions, often without the language
- Education, not recommendations — we explain how to evaluate options, not recommend specific products
- Skepticism is respected — if you've seen financial systems collapse in your country of origin, your caution is justified. We explain how the German context differs structurally
This guide is available in Russian and English. The language switcher is located in the top right corner.
Sources
- Gewerbeordnung (GewO) § 34f and § 34h. Bundesministerium der Justiz. https://www.gesetze-im-internet.de/gewo/
- Kindergeld 2025. Bundesagentur für Arbeit (Familienkasse). https://www.arbeitsagentur.de/familie-und-kinder/kindergeld-hoehe-auszahlung-dauer (Accessed: January 2025)
- Steuererklärung 2023: Durchschnittliche Rückerstattung. Statistisches Bundesamt, 2024. https://www.destatis.de/DE/Themen/Staat/Steuern/Lohnsteuer-Einkommensteuer/im-fokus-steuererklaerung.html