In germany you are well respected if you can handle your money and act responsibly with it. It is not about how much money you make, but how you handle life with what you earn.
As far as I know, there is an additional difference in credit card usage: In Germany, the standard credit card is automatically billed to your current account at the end of a billing month. And most Germans and Europeans simply use their specific bank cards for general purchases. (Same-day billing). This also applies in other EU countries (Single European Payment Area). Funnily enough, however, it can be cheaper to pay abroad with a credit card, as a fixed price is automatically charged to the bank card, regardless of the amount spent. And as the new generation of bank cards also contains a credit card number, you can also have it activated for travel to other countries. (= new regulation after the dissolution of the Maestro payment system) You can often also purchase a pre-paid credit card and some people use this version to make online purchases, for example. However, only standard credit cards are suitable for things like renting a car. (Deposit = the amount is blocked on the card and only billed if damage has occurred)
i wish we were more german here, we had an issue where supermarkets were selling shopping data from cards to insurance companies who then tried to increase the premiums on people arguing that they buy to much alcohol and therefore icnrease theire health risk.....while properly true it still feels very orvellian, im very much for the german way.
The problem is not the supermarkets. When you pay contactless everything is encrypted and randomized. So it is as anonymous as using cash in regards to a shop. The real "problem" are the banks and payment processors, like Visa or MasterCard. But of course they only know when you paid how much to whom. But that may still be an issue for some people.
A few things I want to underscore as german here : 1. My mum always said I should at least have three months worth of living expenses on a directly available savings account for emergencies. That really saved my butt once, when my health insurance did not get my student licence and then decided I mussed pay the minimum amount for self employed peopled, which was 850 monthly. It took a while to rectify that. 2.She also taught me to only buy a house on Credit. If you cant buy something outright, get it second hand, if you still cant buy it, do you really need it. (I am still saving on the 30% minimum contribution) 3. Either do a budget or pay cash for as much as possible, so you always know how you are spending your money. - We are getting more and more digital, so I switched to do a digital account of my household expenses. These are the three main German teachings about money and there is an ever growing movement to get financial education into schools and teach kids young what to do with their money. Like the 50/30/20 ration (spent 50 percent on essentials / 30 on fun stuff /20 go into saving) or where to save for maximum profit. Despite that, I know I lived a privileged life where I was taught this, and knew that I could fall back on my family. One of my best friends, grew up poor and chronically ill and she will die poor. She never had a good financial education. And due to her depending on social wealth fare and her illness she will never be able to safe enough for big emergencies, which makes me worry. But its a difference in education and upbringing.
As you might know, in the GDR (DDR, East Germany during the division), the government heavily monitored its citizens. The secret police, known as the Stasi, collected extensive personal information to control and suppress dissent. This left a lasting impression on many Germans, creating a deep awareness of privacy and a skepticism toward sharing personal information-whether with the state or private companies. Even though times have changed, this cultural caution still influences how we approach privacy and security today.
The point about the points is interesting. There used to be a system (in Germany, from the 50s until I don't know exactly) that was called "Rabattmarken" (discount stamps). They were actually small stamps similar to postage stamps. You got them when you paid in the grocery store. You stuck them in a little booklet and when it was full you could hand it in at the checkout and get a certain amount credited for it. But that only worked in the same store. Some of our discount stores also do the points thing. Our banks don't do it yet. One argument for virtual money that I hear again and again is security. Safe from whom? Greetings from the Black Forest.
The US had a similar thing back then S& H green stamps. And I think people feel credit cards are safer in that you aren't carrying lots of cash that could be lost or stolen from you, and if there is a dispute about the item the credit card company can sometimes arbitrate. For businesses, some do not take cash. This cuts down on the worry of workers stealing or being stolen from, the time at end of shift to count and rectify the money, and getting the money to the bank. And though I am talking about stealing quite a bit here, the actual risk is not that great.
Paying cash is an easy way to discipline your spending habits. If your purse is empty, you postpone spontaneous purchases, and after a while, you don't buy at all, because the novelty has worn off. PS: I don't know if I get any points for using the credit card function of my debit card.
Hey, Moin, Mace! You know what? If in doubt, whether digital or cash, somehow, somewhere, at some point we will all be taken for a ride! One can only hope that everything goes well. 🤔😉
If something is free, you are the commodity! The credit card company earns money by you using your card and encourages you to use it as often as possible, hence the points! Everything you buy with or is linked to your credit card is valuable data they can be sold to the highest bidder! If you are fine with it, no problem at all. But some people, like me, don’t like to be the commodity 😊
Same here! I am using my debit card often for grocery shopping, but I mostly pay cash. My debit card is fine if I didn't have the possibility to get some cash before shopping, but if I have the choice I prefer money. And I also do not use those "point collecting cards" for vouchers and credit points like the "Deutschland Karte". I hate it. Where and when I purchase what is not a matter to be known for the participating retail chains! My habits are privat and shall keep private!
That’s crazy. I mentioned how I like it for the points I get. And it’s convenient for me. Some might criticize that but it is what it is. I get probably 40 bucks a month back in “points”. But if I paid in cash I wouldn’t get anything back.
@@UntilWeGo If you buy something more expensive, ask the dealer what the price is if you pay cash! The dealers pass the fees on to the goods, making them more expensive for everyone. With our bank debit card, there are hardly any fees as it is directly linked to your account at your bank. Cheap, secure and fast for the dealer. The government, tax authorities, banks, data traders and retailers have the greatest interest in cashless payment transactions for various reasons. For retailers, it's mainly more turnover, as people spend more when they don't pay cash. This can be particularly fatal for lower earners. I always question the motive.
You get these 40 dollars for disclosing your data. I have a total aversion to Payback systems because of the disclosure of data to private companies. This data is used by companies to take even more money out of my pocket.
We don't regard debt as a normal thing. It's something you don't do. Only for houses. Debt in German means guilt. Makes it more frightening. I don't have any debts in midlife. I guess I'd take up some for a bit bigger house only. Otherwise never ever.
Since Covid, i am using mostly my Smartphone to pay everything. It works flowlessly in most cases, only our asian restaurant wants cash . But i have some cash in my pocket for emergency.
the card can't be hacked, but the smartphone can be...and then you're in big trouble... (and also : google algorythm knows every buy you make, and can target you for ads).
Yeah, not to want giving away datas is not the only reason. All those fees for Credit-Card and/or digital pay transactions sums up at the end of year. Being in debt and making more debt to compensate the lack of money long before the month ended because of previous/older debt is a diabolic downward spiral, no thank you I don't want to stuck in that rat race (Hamsterrad). It's more relaxing aka less stressfull to me to see my bank-account in plus every month, instead of other way around. To spend more than I have to impress people I don't like is also not my thing, it's just not worth and meaningless.
The argument that paying by card makes you spend more is something I've heard many times, but I can’t confirm it in any way. I've been paying exclusively with my (debit) card for years, and my account has never been overdrawn. Since all my expenses are automatically registered thanks to the payment method, and I can access my account anytime and from anywhere, I have no trouble keeping a seamless and convenient overview of my finances. Additionally, I decided not to set up an overdraft for my account, so I can only ever spend as much as is in my account. My mother, who struggles with technology due to her age and therefore still primarily pays in cash, takes a detour at least twice a week to withdraw money or get bank statements. I completely save on these travel and time costs, for example. She has to painstakingly and diligently write every expense into her household budget book to keep track of her spending habits. I can skip that entirely since I only need to access my account on my PC or phone, where I can conveniently and clearly review every transaction. The fees I pay for digital payments are less than 10 euros per year. My mother definitely spends more on fuel due to her regular trips to the bank, especially when the ATM is out of service, and the branch is closed. In such cases, she has to go to another bank to withdraw money, which incurs additional significant fees. Don’t get me wrong - I understand that some people have their reasons for sticking to cash. However, the argument that going cashless puts you at risk of falling into debt is simply nonsense. People incurred debts long before digital payment methods were introduced. It’s just as easy to get into debt with cash by blowing through your money, failing to pay bills, or not having enough left to cover living expenses for the rest of the month. Debt arises because people lack self-control, can’t or don’t properly track their finances, or simply never learned how to manage money sensibly. And it doesn’t even have to involve a credit card-which, even today, doesn’t get you very far in Germany. A credit card is mainly useful if you’re shopping abroad where only credit card payments are accepted, although that’s becoming less common thanks to globally connected payment services like PayPal and similar platforms.
In germany you are well respected if you can handle your money and act responsibly with it. It is not about how much money you make, but how you handle life with what you earn.
As far as I know, there is an additional difference in credit card usage: In Germany, the standard credit card is automatically billed to your current account at the end of a billing month. And most Germans and Europeans simply use their specific bank cards for general purchases. (Same-day billing). This also applies in other EU countries (Single European Payment Area). Funnily enough, however, it can be cheaper to pay abroad with a credit card, as a fixed price is automatically charged to the bank card, regardless of the amount spent.
And as the new generation of bank cards also contains a credit card number, you can also have it activated for travel to other countries. (= new regulation after the dissolution of the Maestro payment system)
You can often also purchase a pre-paid credit card and some people use this version to make online purchases, for example.
However, only standard credit cards are suitable for things like renting a car. (Deposit = the amount is blocked on the card and only billed if damage has occurred)
Thing is there are no real cashback creditcards here. Highest you can get is 1%. And even amex is not widely accepted here.
Cash is freedom ! Nobody can contoll it.
i wish we were more german here, we had an issue where supermarkets were selling shopping data from cards to insurance companies who then tried to increase the premiums on people arguing that they buy to much alcohol and therefore icnrease theire health risk.....while properly true it still feels very orvellian, im very much for the german way.
The problem is not the supermarkets. When you pay contactless everything is encrypted and randomized. So it is as anonymous as using cash in regards to a shop. The real "problem" are the banks and payment processors, like Visa or MasterCard. But of course they only know when you paid how much to whom. But that may still be an issue for some people.
Well, that video is definitely some years old. 😂
But it is still true that we prefer debit cards to credit cards.
A few things I want to underscore as german here :
1. My mum always said I should at least have three months worth of living expenses on a directly available savings account for emergencies. That really saved my butt once, when my health insurance did not get my student licence and then decided I mussed pay the minimum amount for self employed peopled, which was 850 monthly. It took a while to rectify that.
2.She also taught me to only buy a house on Credit. If you cant buy something outright, get it second hand, if you still cant buy it, do you really need it. (I am still saving on the 30% minimum contribution)
3. Either do a budget or pay cash for as much as possible, so you always know how you are spending your money. - We are getting more and more digital, so I switched to do a digital account of my household expenses.
These are the three main German teachings about money and there is an ever growing movement to get financial education into schools and teach kids young what to do with their money. Like the 50/30/20 ration (spent 50 percent on essentials / 30 on fun stuff /20 go into saving) or where to save for maximum profit.
Despite that, I know I lived a privileged life where I was taught this, and knew that I could fall back on my family. One of my best friends, grew up poor and chronically ill and she will die poor. She never had a good financial education. And due to her depending on social wealth fare and her illness she will never be able to safe enough for big emergencies, which makes me worry. But its a difference in education and upbringing.
Another point is that you spent more money with Creditcard. Cash is better to control on what, where, how much you spent it. Providing impulse buys!
As you might know, in the GDR (DDR, East Germany during the division), the government heavily monitored its citizens. The secret police, known as the Stasi, collected extensive personal information to control and suppress dissent. This left a lasting impression on many Germans, creating a deep awareness of privacy and a skepticism toward sharing personal information-whether with the state or private companies. Even though times have changed, this cultural caution still influences how we approach privacy and security today.
The point about the points is interesting. There used to be a system (in Germany, from the 50s until I don't know exactly) that was called "Rabattmarken" (discount stamps). They were actually small stamps similar to postage stamps. You got them when you paid in the grocery store. You stuck them in a little booklet and when it was full you could hand it in at the checkout and get a certain amount credited for it. But that only worked in the same store.
Some of our discount stores also do the points thing. Our banks don't do it yet.
One argument for virtual money that I hear again and again is security. Safe from whom?
Greetings from the Black Forest.
The US had a similar thing back then S& H green stamps. And I think people feel credit cards are safer in that you aren't carrying lots of cash that could be lost or stolen from you, and if there is a dispute about the item the credit card company can sometimes arbitrate. For businesses, some do not take cash. This cuts down on the worry of workers stealing or being stolen from, the time at end of shift to count and rectify the money, and getting the money to the bank. And though I am talking about stealing quite a bit here, the actual risk is not that great.
The drug dealer also doesn't take card payments to buy weed.
Moin!
Cash is king.
Debit is queen
Credit is the bank’s ace.
Paying cash is an easy way to discipline your spending habits. If your purse is empty, you postpone spontaneous purchases, and after a while, you don't buy at all, because the novelty has worn off.
PS: I don't know if I get any points for using the credit card function of my debit card.
Yes I have a smartphone. But that does not mean that I want to give all my datas away. The law is here different to other countries.
I wanted to write that too. In the EU, it is not so easy for companies to sell customer data to each other.
Hey, Moin, Mace!
You know what? If in doubt, whether digital or cash, somehow, somewhere, at some point we will all be taken for a ride! One can only hope that everything goes well. 🤔😉
If something is free, you are the commodity! The credit card company earns money by you using your card and encourages you to use it as often as possible, hence the points! Everything you buy with or is linked to your credit card is valuable data they can be sold to the highest bidder!
If you are fine with it, no problem at all. But some people, like me, don’t like to be the commodity 😊
I don't own a Credit Card ... < never had one! And: I never needed one in Germany.
Same here! I am using my debit card often for grocery shopping, but I mostly pay cash. My debit card is fine if I didn't have the possibility to get some cash before shopping, but if I have the choice I prefer money. And I also do not use those "point collecting cards" for vouchers and credit points like the "Deutschland Karte". I hate it. Where and when I purchase what is not a matter to be known for the participating retail chains! My habits are privat and shall keep private!
US citizens have $1 trillion in credit card debt alone. 🤪
That’s crazy. I mentioned how I like it for the points I get. And it’s convenient for me. Some might criticize that but it is what it is. I get probably 40 bucks a month back in “points”. But if I paid in cash I wouldn’t get anything back.
@@UntilWeGo If you buy something more expensive, ask the dealer what the price is if you pay cash!
The dealers pass the fees on to the goods, making them more expensive for everyone.
With our bank debit card, there are hardly any fees as it is directly linked to your account at your bank. Cheap, secure and fast for the dealer.
The government, tax authorities, banks, data traders and retailers have the greatest interest in cashless payment transactions for various reasons. For retailers, it's mainly more turnover, as people spend more when they don't pay cash. This can be particularly fatal for lower earners.
I always question the motive.
You get these 40 dollars for disclosing your data.
I have a total aversion to Payback systems because of the disclosure of data to private companies. This data is used by companies to take even more money out of my pocket.
@@tosa2522 🤘
when you want everything, AT ONCE, like a spoilt kid, you quickly get bankrupt...that's US problem : greeeed !
We don't regard debt as a normal thing. It's something you don't do. Only for houses. Debt in German means guilt. Makes it more frightening. I don't have any debts in midlife. I guess I'd take up some for a bit bigger house only. Otherwise never ever.
Since Covid, i am using mostly my Smartphone to pay everything. It works flowlessly in most cases, only our asian restaurant wants cash . But i have some cash in my pocket for emergency.
the card can't be hacked, but the smartphone can be...and then you're in big trouble...
(and also : google algorythm knows every buy you make, and can target you for ads).
Yeah, not to want giving away datas is not the only reason.
All those fees for Credit-Card and/or digital pay transactions sums up at the end of year.
Being in debt and making more debt to compensate the lack of money long before the month ended because of previous/older debt is a diabolic downward spiral, no thank you I don't want to stuck in that rat race (Hamsterrad).
It's more relaxing aka less stressfull to me to see my bank-account in plus every month, instead of other way around.
To spend more than I have to impress people I don't like is also not my thing, it's just not worth and meaningless.
The argument that paying by card makes you spend more is something I've heard many times, but I can’t confirm it in any way.
I've been paying exclusively with my (debit) card for years, and my account has never been overdrawn.
Since all my expenses are automatically registered thanks to the payment method, and I can access my account anytime and from anywhere, I have no trouble keeping a seamless and convenient overview of my finances.
Additionally, I decided not to set up an overdraft for my account, so I can only ever spend as much as is in my account.
My mother, who struggles with technology due to her age and therefore still primarily pays in cash, takes a detour at least twice a week to withdraw money or get bank statements.
I completely save on these travel and time costs, for example.
She has to painstakingly and diligently write every expense into her household budget book to keep track of her spending habits. I can skip that entirely since I only need to access my account on my PC or phone, where I can conveniently and clearly review every transaction.
The fees I pay for digital payments are less than 10 euros per year.
My mother definitely spends more on fuel due to her regular trips to the bank, especially when the ATM is out of service, and the branch is closed. In such cases, she has to go to another bank to withdraw money, which incurs additional significant fees.
Don’t get me wrong - I understand that some people have their reasons for sticking to cash. However, the argument that going cashless puts you at risk of falling into debt is simply nonsense.
People incurred debts long before digital payment methods were introduced. It’s just as easy to get into debt with cash by blowing through your money, failing to pay bills, or not having enough left to cover living expenses for the rest of the month.
Debt arises because people lack self-control, can’t or don’t properly track their finances, or simply never learned how to manage money sensibly.
And it doesn’t even have to involve a credit card-which, even today, doesn’t get you very far in Germany. A credit card is mainly useful if you’re shopping abroad where only credit card payments are accepted, although that’s becoming less common thanks to globally connected payment services like PayPal and similar platforms.
I'm excited to see us Germans reacting when CBDC's come into our life. Dann trennt sich die Spreu vom Weizen
you dont anderstand