Financial check
If you want to be financially independent, you have to take care of your money
From the age of 18, young people are responsible for their own finances. Financial knowledge is an important prerequisite for this - but how does this actually work with money? And what needs to be considered when it comes to accounts, loans, investments and insurance? A regular financial check helps school pupils, trainees, students and young professionals to keep track of things.
Managing your finances independently
When your child turns 18, the account documents must be renewed and bank powers of attorney - if still desired - must be reissued. We have summarized everything that needs to be arranged at the bank after the birthday for parents and young people in the article "The most important things about money and accounts at a glance". However, money remains an ongoing issue throughout life. Personal financial and insurance needs change at every stage of life: If you are doing an apprenticeship, you will need a bank account, if you are starting university, you may need a student loan. If you want your own car, you may need an installment loan. Insurance should also be checked regularly to avoid overinsurance or underinsurance. And if you are earning your first money, you should start building up personal assets to provide for the future, to name just a few of the financial needs that are worth taking care of.
Checking your finances during training
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Current account and cards
The basis of all banking transactions is a current account, access to online and mobile banking and a debit or credit card for mobile payments. Young people get all of this from their bank. Incidentally, the current account is free of charge for trainees at many banks.
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Insurances
Trainees need to think about their private insurance cover, as they are no longer insured by their parents in some areas when they start their training. This applies to health insurance and, if applicable, private liability insurance if the child moves away from home. It can also make sense to take out occupational disability insurance early on. Information on this topic can be found in the article "Which insurances are necessary?" here on Familienportal.NRW.
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Financing training
The dream job should not fail because of financing. If you would like to know which financial instruments can help you pay for your training and living costs if your trainee salary is not enough, you will find further helpful information in the article "Financing training or studies".
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Investing capital-forming benefits
Many employers pay an allowance for capital-forming benefits (VL) in addition to the training salary. Some employers even pay the savings amount of 40 euros per month in full. This is free money that nobody should miss out on! If you choose a subsidized form of investment (e.g. a fund savings plan or building society savings contract) to invest your VL, you can also receive a state subsidy on top if your taxable income is below certain limits. Over the years, a nice financial cushion is built up.
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Capital accumulation and private provision for the future
Young people don't usually think about retirement yet. Nevertheless, it is worth starting to accumulate assets in good time. The earlier, the better! This has one major advantage: even with small savings amounts, a lot can be achieved over a long savings period. If you have money left over at the end of the month, you should therefore invest a certain amount smartly on a regular basis. Investment tips can be found on many online financial portals and from investment specialists at banks and savings banks.
Checking your finances during your studies
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Current account and cards
A current account with a debit or credit card also gives students access to all financial transactions. The current account is usually free of charge during the study period.
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Financing your studies
In addition to other sources of finance such as parents, BAföG or a scholarship, a student loan offers a certain degree of financial independence for financing living costs. Information on BAföG and KfW student loans can be found in the article "Financing training or studies" on the Familienportal.NRW.
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Insurances
Students are generally covered by their parents' health insurance until the age of 25. However, anyone who earns additional income and exceeds certain limits must take out their own insurance. Having your own private liability insurance is essential if family insurance no longer applies. It is also worth thinking about taking out occupational disability insurance while you are still studying, both to protect yourself and to secure low rates in the long term. Not to forget: Special insurance cover is required for a longer stay abroad or a semester abroad. Here, too, it is essential to seek advice. Further tips can be found in the article "What insurance is necessary?"
Where can we find help and advice?
- For personal advice on transferring accounts and personal financial planning, it is best to make an appointment directly with your bank or savings bank. Consultations with an independent financial advisor may be subject to a fee, please enquire in advance.
- You can obtain advice on the subject of insurance from the consultation centers of the NRW consumer advice center.
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