## Introduction: The Valuation Gap

If you've been laser-focused on U.S. stocks over the past decade, you're not alone. American markets have dominated global returns for years. But something interesting is happening across the Atlantic that smart investors should pay attention to.

European equities entered 2025 trading at their **deepest discount in two decades** relative to U.S. stocks, according to MoneyWeek. By late 2024, European equities were valued at only about 60% of their American counterparts, compared to a 20-year median of approximately 80% (MoneyWeek, Dec 2024).

This valuation gap isn't limited to a few sectors. According to J.P. Morgan Asset Management, "every European sector" is now valued well below its U.S. counterpart, suggesting investors have perhaps grown overly pessimistic on European companies' prospects (J.P. Morgan Asset Management, 2025).

So what's driving this change, and how can you, as an American investor, potentially benefit? Let's dive in.

**Source:** [MoneyWeek - Is there value in European equities?](https://moneyweek.com/investments/european-stock-markets/is-there-value-in-european-equities)

## The Tide is Turning: Europe's Market Momentum

After years of lagging behind, European markets have shown surprising strength in early 2025. According to Morningstar, European stocks surged by 9% by mid-March 2025, while U.S. equities declined by 8% during the same period (Morningstar, Mar 2025).

This performance shift has caught the attention of global investors. A Bank of America fund manager survey reported in February 2025 highlighted a dramatic shift in sentiment, with 76% of surveyed managers anticipating further upside for Europe in the coming year. For the first time in months, a majority even believed Europe would be the best-performing market globally in 2025 (Euronews, Feb 2025).

What's behind this newfound optimism? Several key factors:

- **Improving economic policies:** Unlike the Fed, the ECB signaled easier monetary policy, with European interest rates at 2.5% versus 4.5% in the U.S. (Morningstar, Q2 2025)
- **Fiscal stimulus:** Germany unveiled a "radical" €500 billion infrastructure spending plan, ending years of austerity to spur growth (Morningstar, Mar 2025)
- **Inflation control:** European inflation dropped to 2.2%, supporting a more favorable interest rate environment (Morningstar, Q2 2025)

Goldman Sachs Research notes that Europe's strong start to 2025 is particularly impressive given that only 8% of investors expected the region to lead global markets this year. Even after a 10-12% jump in European equities, valuation gaps remain sizable, suggesting there may be more room to run (Goldman Sachs, Jan 2025).

**Source:** [Morningstar - Stock Investors Start to Shift Money from the US to Europe](https://www.morningstar.co.uk/uk/news/262456/stock-investors-start-to-shift-money-from-the-us-to-europe.aspx)

## Undervalued Sectors Worth Your Attention

### Renewable Energy: Deep Value in Europe's Green Transition

European renewable energy companies have been hit hard by trade tariffs and rising financing costs, making the sector deeply out of favor. However, Morningstar suggests this pessimism appears overdone. For example, Denmark's Ørsted, a wind energy giant, saw its shares drop about 15% year-to-date to a level approximately 40% under Morningstar's fair value estimate (Morningstar, Apr 2025).

With Europe's clean power transition accelerating as a matter of energy "sovereignty" and interest rates likely to ease, the thesis for a rebound in Europe's renewable sector looks compelling. For American investors seeking exposure, the iShares Global Clean Energy ETF (ICLN) offers a convenient way to access European clean-power leaders.

### Luxury Goods: Premium Brands at Discount Prices

Several top European luxury stocks slid into bargain territory after a challenging 2023-2024 period. For instance, France's Kering (owner of Gucci) plunged about 17% year-to-date and trades around €195 – less than half of Morningstar's fair value estimate of €448. Similarly, UK-based Burberry was trading at approximately 40% below its estimated fair value (Morningstar, late 2024).

These luxury brands still enjoy strong pricing power and global consumer demand, suggesting potential for outperformance as sales recover. American investors can gain exposure through the Roundhill S&P Global Luxury ETF (LUXX), which is heavily weighted toward European luxury icons.

### Industrial Innovation: Europe's Hidden Strength

Despite recession fears, many European industrial companies have been outperforming broader markets. An index of European industrial goods firms beat the MSCI Europe index by approximately 6.8 percentage points annually since 2014, including a remarkable 15.7% outperformance in 2023 alone (Oliver Wyman, Sept 2024).

This growth favors innovative niches like defense equipment, power generation & electrification, and semiconductor machinery. For example, Dutch chip-tool maker ASML added nearly 2% to sector growth on its own. The ROBO Global Robotics & Automation ETF (ROBO) offers Americans targeted access to this industrial tech theme, where European engineering firms excel.

**Source:** [Morningstar - 3 Highly Undervalued European Renewable Energy Stocks](https://www.morningstar.co.uk/uk/news/262619/3-highly-undervalued-european-renewable-energy-stocks-.aspx)

## How Big is the Value Gap?

The valuation disparity between U.S. and European markets has reached historic proportions. According to Rothschild & Co, at the end of 2024, U.S. equities traded at approximately 22 times earnings (near record highs) while European equities hovered around 13 times (in line with historical norms). This 40%+ valuation gap was the widest ever recorded (Rothschild & Co, 2025 Outlook).

Similarly, J.P. Morgan notes that European indices trade at just about 14 times forward earnings, compared to approximately 22 times for the S&P 500. Consensus expectations call for only about 8% earnings growth in Europe versus 14% in the U.S. – meaning Europe faces lower hurdles for positive surprises (J.P. Morgan Asset Management, 2025).

As Janus Henderson Investors puts it, Europe's "attractive valuations and under-owned status" act as a "safety net" for investors. They point out that global investors are underweight Europe, so any improvement could spark significant inflows (Janus Henderson, Jan 2025).

**Source:** [Rothschild & Co - 2024 Review and 2025 Outlook: European actions](https://am.eu.rothschildandco.com/en/news/2024-review-and-2025-outlook-european-actions/)

## Practical Ways to Gain European Exposure

For American investors looking to diversify internationally, here are some U.S.-listed ETFs that provide targeted European sector exposure:

1. **ICLN – iShares Global Clean Energy ETF:** Offers exposure to renewable energy companies worldwide, with a significant portion in European clean-power leaders like wind turbine makers and utilities.
2. **ROBO – ROBO Global Robotics & Automation ETF:** Tracks a basket of robotics and industrial automation firms globally, including many innovative European manufacturers in Germany, Switzerland, and other countries.
3. **LUXX – Roundhill S&P Global Luxury ETF:** Focuses on the world's top luxury goods companies, heavily weighted toward European luxury icons like France's LVMH and Hermès.
4. **IEUS – iShares MSCI Europe Small-Cap ETF:** Targets smaller European companies across various sectors, providing diversified access to Europe's small-cap segment, which could offer superior growth potential as Europe's economy improves.

Each of these ETFs is readily available to U.S. investors, offering practical ways to gain exposure to promising European sectors while diversifying beyond domestic markets.

## What Could Drive Further European Outperformance?

Several catalysts could potentially support continued European market strength:

- **Fiscal stimulus:** Germany's massive investment plan (approximately €500 billion) could boost Europe's largest economy significantly (Janus Henderson, Jan 2025)
- **Policy tailwinds:** EU-level efforts to cut red tape and mobilize high private savings into investments are underway (Janus Henderson, Jan 2025)
- **Sentiment shift:** Global investors are underweight Europe, meaning any improvement could trigger substantial inflows (Janus Henderson, Jan 2025)
- **Valuation reversion:** The extreme valuation gap between U.S. and European markets suggests potential for mean reversion (Goldman Sachs, Jan 2025)

According to Morningstar's Q2 2025 outlook, after a strong Q1 rally, European equities moved to within about 2% of their fair value estimates (up from a 5% discount in late 2024), closing much of the valuation gap with the U.S. However, many individual sectors and companies still offer compelling value.

**Source:** [Morningstar - European Stock Market Outlook: Where We See Opportunities in Q2](https://www.morningstar.co.uk/uk/news/262806/european-stock-market-outlook-where-we-see-opportunities-in-q2.aspx)

## Conclusion: Time to Look Beyond U.S. Borders?

While U.S. markets have dominated for years, the historic valuation gap between U.S. and European equities suggests this might be an opportune time for American investors to diversify internationally. With European stocks trading at significantly lower multiples, improving economic policies, and several promising sectors showing strength, Europe offers potentially attractive opportunities for those willing to look beyond domestic markets.

As Tancred Vierkant, European equity fund manager, noted about renewable energy stocks, "The market completely threw the baby out with the bathwater" (Morningstar, Apr 2025) – a sentiment that might apply to European equities more broadly. For careful investors, this could represent a chance to add quality European exposure while valuations remain compelling.

Consider consulting with your financial advisor about whether adding some European exposure through the ETFs mentioned above might be appropriate for your portfolio. The combination of attractive valuations, improving sentiment, and specific sector strengths makes Europe worth a fresh look in 2025.

**Sources:**
1. [Morningstar - Stock Investors Start to Shift Money from the US to Europe](https://www.morningstar.co.uk/uk/news/262456/stock-investors-start-to-shift-money-from-the-us-to-europe.aspx)
2. [Morningstar - European Stock Market Outlook: Where We See Opportunities in Q2](https://www.morningstar.co.uk/uk/news/262806/european-stock-market-outlook-where-we-see-opportunities-in-q2.aspx)
3. [Morningstar - 3 Highly Undervalued European Renewable Energy Stocks](https://www.morningstar.co.uk/uk/news/262619/3-highly-undervalued-european-renewable-energy-stocks-.aspx)
4. [Morningstar - Europe's Most Undervalued Luxury Stocks](https://www.morningstar.co.uk/uk/news/262736/europes-most-undervalued-luxury-stocks.aspx)
5. [MoneyWeek - Is there value in European equities?](https://moneyweek.com/investments/european-stock-markets/is-there-value-in-european-equities)
6. [Rothschild & Co - 2024 Review and 2025 Outlook: European actions](https://am.eu.rothschildandco.com/en/news/2024-review-and-2025-outlook-european-actions/)
7. [J.P. Morgan Asset Management - Equity market outlook 2025: Dissecting regional value](https://am.jpmorgan.com/se/en/asset-management/per/insights/market-insights/investment-outlook/equity-outlook/)
8. [Goldman Sachs - Why European stocks are outperforming the US](https://www.goldmansachs.com/insights/articles/why-european-stocks-are-outperforming-the-us)
9. [Euronews - Why are seasoned investors betting big on European equities?](https://www.euronews.com/business/2025/02/22/why-are-seasoned-investors-betting-big-on-european-equities)
10. [Janus Henderson Investors - Are the tides rising for European equities in 2025?](https://www.janushenderson.com/en-us/investor/article/are-the-tides-rising-for-european-equities/)
11. [Oliver Wyman - In-Depth Review Of The 2024 European Industrial Goods Sector](https://www.oliverwyman.com/our-expertise/insights/2024/sep/the-state-of-the-european-industrial-goods-sector-2024.html)

Looking East: Why American Investors Should Consider European Markets in 2025

Germans spend an average of 11.8% of their disposable income on food – for a family of four, that's easily €700 or more per month. According to the Federal Statistical Office, food prices have risen continuously in recent years, putting further pressure on household budgets. But with the right strategies and tools, you can save real money on grocery shopping without sacrificing quality and enjoyment.

## Current Food Prices in Germany: An Assessment

Food prices in Germany have somewhat stabilized after the sharp price increases of recent years, but remain at a high level. Consumers particularly feel price increases in dairy products (+3.1% last year), fresh fruits and vegetables (+2.8%), and meat and fish (+2.4%).

The average weekly shopping for a family currently costs between €110 and €140 – with an upward trend. With smart shopping strategies and modern digital tools, you can reduce this amount by 15-25% – which corresponds to annual savings of up to €1,800! Here you'll learn how to implement this specifically.

## Digital Helpers: The Best Savings Apps for Your Shopping

These proven apps help you save money specifically on grocery shopping:

### 1. Too Good To Go

This successful European app fights food waste and helps you save up to 70% on shopping. The principle: Local bakeries, supermarkets, restaurants, and cafes offer leftover food at greatly reduced prices that would otherwise be thrown away.

**Special feature:** The "surprise bags" typically cost between €3 and €6 but contain goods worth €9 to €18. Bags from bakeries and supermarkets are particularly worthwhile.

**Savings:** Users save an average of 66% compared to regular purchase prices. With regular use (2x per week), the savings add up to about €50-80 monthly.

**Source:** [Too Good To Go Germany](https://toogoodtogo.de/de)

### 2. Lidl Plus, PAYBACK & Co.

The digital loyalty programs of major supermarket chains and discounters have long replaced traditional discount stamps and paper coupons. Apps like Lidl Plus, PAYBACK (for Rewe, dm, etc.), the Netto app, or Kaufland Card offer personalized discounts and coupons directly to your smartphone.

**Special feature:** By combining several programs and strategically using digital coupons, the savings can be substantial. Particularly the Lidl Plus app with its coupons and receipt rebate (when reaching certain purchase amounts) as well as the PAYBACK coupons in combination with points have proven to be especially worthwhile.

**Savings:** Depending on usage intensity, between 5% and 15% of total expenditure. A family of four can easily save €30-60 per month this way.

**Sources:** [Lidl Plus](https://www.lidl.de/c/lidl-plus/s10007388), [PAYBACK](https://www.payback.de/)

### 3. Bring!

This popular shopping list app goes far beyond simply noting purchases. With integrated flyers, automatic categories, and the ability to share lists with family members, Bring! helps you shop more structured and therefore more economically.

**Special feature:** The app shows current offers from participating markets directly in your shopping list. Additionally, the clear categorization helps reduce impulse purchases.

**Savings:** Studies show that structured shopping with a list reduces impulse purchases by up to 23%. With a monthly food budget of €600, that corresponds to savings of around €140 per month.

**Source:** [Bring! Labs AG](https://www.getbring.com/)

## Discounter vs. Supermarket: What's Worth It in 2025?

The landscape of food retailers has changed. Here's a current comparison based on price analyses from consumer portals:

### Discounters: New Strengths and Weaknesses

Discounters like Aldi, Lidl, and Netto have significantly expanded their range, especially for organic products and regional specialties. According to current surveys by Stiftung Warentest, the average price difference compared to traditional supermarkets is still about 11-15%.

**Concrete price examples (average values):**
- 500g organic pasta: €1.19 (discounter) vs. €1.69 (supermarket)
- 250g German brand butter: €2.19 (discounter) vs. €2.45 (supermarket)
- 1kg apples (German season): €2.29 (discounter) vs. €2.79 (supermarket)

**Smart savings:** Basic food items, cleaning products, and hygiene products are still significantly cheaper at discounters. For meat, fish, and exotic fruits, the price difference is smaller – here it's worth comparing.

**Source:** Current price comparisons from consumer organizations and own market research

### Supermarkets: The New Discount Strategies

Traditional supermarkets like Rewe, Edeka, and Kaufland have caught up with their own savings strategies:

1. **Evening discounts:** Many supermarkets reduce perishable goods in the evening. According to a study by the Consumer Advice Center, the discounts can range between 30% and 50%.
2. **Customer card programs:** The digital loyalty programs offer personalized discounts of 5-20% on selected products.
3. **Price guarantees:** Some chains now offer price guarantees on basic products that can keep up with discounter prices.

**Smart savings:** Use supermarkets specifically for their evening discounts and personalized offers. A family can easily save €30-50 per month through strategic shopping at reduced evening prices.

**Source:** Consumer portals and price tracking analyses

## The Current Seasonal Calendar: Shop Economically and Sustainably

Seasonal products are not only more environmentally friendly but also significantly cheaper. According to the BMEL (Federal Ministry of Food and Agriculture), the price differences between seasonal and imported products can be 30-60%.

### Spring (March-May):
- **Vegetables:** Asparagus, spinach, radishes, rhubarb (30-50% cheaper than out of season)
- **Fruit:** First domestic strawberries from the end of May (price difference compared to imported strawberries: approx. €2 per 500g)

### Summer (June-August):
- **Vegetables:** Tomatoes, zucchini, peppers, cucumbers (up to 60% cheaper than in winter)
- **Fruit:** Berries, cherries, peaches, apricots (price difference compared to imported goods: €3-4 per kilo)

**Smart savings:** Plan your weekly shopping based on seasonal offers. The free "Seasonality" app shows you which fruits and vegetables are currently in season. A family of four can save €15-20 per week on fruits and vegetables this way.

**Sources:** [BMEL Seasonal Calendar](https://www.bmel.de), [WWF Seasonal Calendar](https://www.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/Kampagne/Saisonkalender-Essen-im-Rhythmus-der-Natur.pdf)

## Zero-Waste Kitchen: Avoid Food Waste and Save Money

According to the Federal Ministry of Food and Agriculture, every German throws away an average of 75 kg of food per year – equivalent to a value of about €300 per person per year. These strategies help you stop this hidden waste of money:

### Intelligent Storage

1. **The FIFO method (First In, First Out):** Put newly purchased products at the back of the shelf and consume the older supplies first.
2. **Digital inventory management:** Apps like "Grocy" or "NoWaste" help you keep track of supplies and expiration dates.

### Creative Leftover Usage

With these techniques, you save real money:

- Freeze **vegetable scraps** for broth (saves €2-3 per homemade broth)
- Process **stale bread** into croutons or bread dumplings
- Use **overripe fruit** for smoothies or compote

**Smart savings:** A family that consistently pays attention to food waste can save €50-70 monthly, according to studies by consumer centers.

**Sources:** [BMEL Too Good for the Bin](https://www.zugutfuerdietonne.de), [Consumer Advice Center](https://www.verbraucherzentrale.de)

## Case Study: How the Müller Family Reduced Their Food Costs by 28%

The Müller family of four from Frankfurt managed to reduce their monthly food expenditure from €850 to €610 – without sacrificing quality. Here are their most important strategies:

### Systematic Meal Prepping

Instead of shopping spontaneously, the Müller family plans their meals for the week in advance. They use the Bring! app for coordinated shopping lists and thus avoid expensive spontaneous purchases.

**Savings:** About 18% of their food costs through fewer spontaneous purchases and more targeted shopping

### Clever Combination: Discounter and Supermarket

The Müllers consistently buy basic food items and household articles at the discounter, while they specifically purchase fresh products like fruits, vegetables, and baked goods at the supermarket with evening discounts.

**Savings:** An average of 15% per shopping trip through this combination strategy

### Too Good To Go as a Regular Component

Twice a week, a family member picks up surprise bags from local bakeries and an organic supermarket – for an average of €4.50 per bag with a goods value of about €15.

**Savings:** Approx. €85 per month through regular Too Good To Go purchases

## Conclusion: Your Personal Savings Plan for 2025

With the strategies presented, you can significantly reduce your food costs without making sacrifices in quality and enjoyment. Here are the most important steps summarized:

1. **Digitize your shopping:** Use apps like Too Good To Go, Lidl Plus, and Bring! for systematic savings
2. **Think seasonally:** Align your meal plan with seasonal offers
3. **Combine cleverly:** Use discounters for staple foods and supermarket evening discounts for fresh products
4. **Aim for zero waste:** Reduce food waste through better planning and creative leftover usage

If you consistently implement all tips, you can reduce your annual food expenditure by €1,200-1,800 – without having to give up anything.

Save Money Cleverly on Grocery Shopping in 2025: Practical Strategies for Your Wallet

Germans spend an average of 11.8% of their disposable income on food – for a family of four, that can quickly amount to €700 or more per month. According to the Federal Statistical Office, food prices have been continuously rising in recent years, putting further pressure on household budgets. But with the right strategies and tools, you can save real money on grocery shopping without compromising on quality and enjoyment.

## Current Food Prices in Germany: An Assessment

Food prices in Germany have somewhat stabilized after the sharp price increases of recent years, but remain at a high level. Consumers particularly feel the price increases in dairy products (+3.1% in the last year), fresh fruits and vegetables (+2.8%), and meat and fish (+2.4%).

The average weekly shopping for a family currently costs between €110 and €140 – with an upward trend. With smart shopping strategies and modern digital tools, you can reduce this amount by 15-25% – equivalent to annual savings of up to €1,800! Here you'll learn how to implement this concretely.

## Digital Helpers: The Best Savings Apps for Your Shopping

These proven apps help you save money specifically on grocery shopping:

### 1. Too Good To Go

This successful European app fights food waste and helps you save up to 70% on shopping. The principle: Local bakeries, supermarkets, restaurants, and cafés offer leftover food at greatly reduced prices that would otherwise be thrown away.

**Special feature:** The "surprise bags" typically cost between €3 and €6 but contain goods worth €9 to €18. Bags from bakeries and supermarkets are particularly worthwhile.

**Savings:** Users save an average of 66% compared to regular purchase prices. With regular use (2x per week), the savings add up to about €50-80 monthly.

**Source:** [Too Good To Go Germany](https://toogoodtogo.de/de)

### 2. Lidl Plus, PAYBACK & Co.

The digital customer loyalty programs of major supermarket chains and discounters have long replaced traditional discount stamps and paper coupons. Apps like Lidl Plus, PAYBACK (for Rewe, dm, etc.), the Netto app, or Kaufland Card offer personalized discounts and coupons directly to your smartphone.

**Special feature:** By combining several programs and strategically using digital coupons, the savings can be substantial. Particularly the Lidl Plus app with its coupons and receipt discount (when reaching certain purchase amounts) as well as the PAYBACK coupons in combination with points have proven to be especially worthwhile.

**Savings:** Depending on usage intensity, between 5% and 15% of total expenditure. A family of four can easily save €30-60 per month this way.

**Sources:** [Lidl Plus](https://www.lidl.de/c/lidl-plus/s10007388), [PAYBACK](https://www.payback.de/)

### 3. Bring!

This popular shopping list app goes far beyond simply noting down purchases. With integrated flyers, automatic categories, and the ability to share lists with family members, Bring! helps you shop more structurally and thus more economically.

**Special feature:** The app shows current offers from participating markets directly in your shopping list. Additionally, the clear categorization helps reduce impulse purchases.

**Savings:** Studies show that structured shopping with a list reduces impulse purchases by up to 23%. With a monthly food budget of €600, this corresponds to savings of around €140 per month.

**Source:** [Bring! Labs AG](https://www.getbring.com/)

## Discounter vs. Supermarket: What's Worth It in 2025?

The landscape of food retailers has changed. Here's a current comparison based on price analyses from consumer portals:

### Discounters: New Strengths and Weaknesses

Discounters like Aldi, Lidl, and Netto have significantly expanded their range, especially in organic products and regional specialties. According to current surveys by Stiftung Warentest, the average price difference to traditional supermarkets is still about 11-15%.

**Concrete price examples (average values):**
- 500g organic pasta: €1.19 (discounter) vs. €1.69 (supermarket)
- 250g German brand butter: €2.19 (discounter) vs. €2.45 (supermarket)
- 1kg apples (German season): €2.29 (discounter) vs. €2.79 (supermarket)

**Smart saving:** Basic foodstuffs, cleaning products, and hygiene products are still significantly cheaper at discounters. For meat, fish, and exotic fruits, the price difference is smaller – here it's worth comparing.

**Source:** Current price comparisons from consumer organizations and own market research

### Supermarkets: The New Discount Strategies

Traditional supermarkets like Rewe, Edeka, and Kaufland have caught up with their own savings strategies:

1. **Evening discounts:** Many supermarkets reduce perishable goods in the evening. According to a study by the Consumer Centre, discounts can range from 30% to 50%.
2. **Customer card programs:** The digital loyalty programs offer personalized discounts of 5-20% on selected products.
3. **Price guarantees:** Some chains now offer price guarantees on basic products that can compete with discounter prices.

**Smart saving:** Use supermarkets specifically for their evening discounts and personalized offers. A family can easily save €30-50 per month through strategic shopping at reduced evening prices.

**Source:** Consumer portals and price tracking analyses

## The Current Seasonal Calendar: Economical and Sustainable Shopping

Seasonal products are not only more environmentally friendly but also significantly cheaper. According to the BMEL (Federal Ministry of Food and Agriculture), the price differences between seasonal and imported products can be 30-60%.

### Spring (March-May):
- **Vegetables:** Asparagus, spinach, radishes, rhubarb (30-50% cheaper than out of season)
- **Fruit:** First local strawberries from the end of May (price difference to imported strawberries: approx. €2 per 500g)

### Summer (June-August):
- **Vegetables:** Tomatoes, zucchini, peppers, cucumbers (up to 60% cheaper than in winter)
- **Fruit:** Berries, cherries, peaches, apricots (price difference to imported goods: €3-4 per kilo)

**Smart saving:** Plan your weekly shopping based on seasonal offers. The free app "Seasonality" shows you which fruits and vegetables are currently in season. A family of four can save €15-20 per week on fruits and vegetables this way.

**Sources:** [BMEL Seasonal Calendar](https://www.bmel.de), [WWF Seasonal Calendar](https://www.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/Kampagne/Saisonkalender-Essen-im-Rhythmus-der-Natur.pdf)

## Zero-Waste Kitchen: Avoid Food Waste and Save Money

According to the Federal Ministry of Food and Agriculture, every German throws away an average of 75 kg of food per year – equivalent to a value of about €300 per person per year. These strategies help you stop this hidden waste of money:

### Intelligent Storage

1. **The FIFO method (First In, First Out):** Put newly purchased products at the back of the shelf and use older supplies first.
2. **Digital inventory management:** Apps like "Grocy" or "NoWaste" help you keep track of supplies and best-before dates.

### Creative Leftovers Utilization

Save real money with these techniques:

- **Vegetable scraps** freeze for broth (saves €2-3 per homemade broth)
- **Stale bread** process into croutons or bread dumplings
- **Overripe fruit** use for smoothies or compote

**Smart saving:** A family that consistently pays attention to food waste can save €50-70 monthly according to studies by consumer centers.

**Sources:** [BMEL Too Good for the Bin](https://www.zugutfuerdietonne.de), [Consumer Centre](https://www.verbraucherzentrale.de)

## Case Study: How the Müller Family Reduced Their Food Costs by 28%

The Müller family of four from Frankfurt managed to reduce their monthly food expenses from €850 to €610 – without compromising on quality. Here are their most important strategies:

### Systematic Meal Prepping

Instead of shopping spontaneously, the Müller family plans their meals for the week in advance. They use the Bring! app for coordinated shopping lists and thus avoid expensive spontaneous purchases.

**Savings:** About 18% of their food costs through fewer spontaneous purchases and more targeted shopping

### Smart Combination: Discounter and Supermarket

The Müllers consistently buy staple foods and household items at the discounter, while they specifically purchase fresh products like fruits, vegetables, and baked goods at the supermarket with evening discounts.

**Savings:** Average of 15% per purchase through this combination strategy

### Too Good To Go as a Regular Component

Twice a week, a family member picks up surprise bags from local bakeries and an organic supermarket – for an average of €4.50 per bag with a goods value of about €15.

**Savings:** Approx. €85 per month through regular Too Good To Go purchases

## Conclusion: Your Personal Savings Plan for 2025

With the strategies presented, you can significantly reduce your food costs without making compromises in quality and enjoyment. Here are the most important steps summarized:

1. **Digitize your shopping:** Use apps like Too Good To Go, Lidl Plus, and Bring! for systematic savings
2. **Think seasonally:** Align your meal plan with seasonal offers
3. **Smart combination:** Use discounters for staple foods and supermarket evening discounts for fresh products
4. **Aim for zero waste:** Reduce food waste through better planning and creative use of leftovers

If you consistently implement all tips, you can reduce your annual food expenses by €1,200-1,800 – without having to give up anything.


Collecting Millions – But Is It Really Worth It?

It blinks temptingly next to the shopping cart button, promising immediate wish fulfillment without immediately charging your account. "Buy Now, Pay Later" (BNPL) is on the rise – and how! Did you know that according to a Riverty survey, **one-third of all online purchases in Germany in 2023 were paid via BNPL**? ([Source: E-Commerce Magazine](https://www.e-commerce-magazin.de/bnpl-wie-diese-bezahloption-die-kundenbindung-erhoehen-kann-a-b43398c0cba9d3f0247afd785d70a418/#:~:text=Services%20f%C3%BCr%20Buy%20Now%2C%20Pay,Niederlanden%20sogar%20um%2019%20Prozent)).

No wonder, because BNPL sounds super practical at first. But how exactly does it work? Which providers are there? And above all: Is it really as risk-free as it often seems, or are there hidden costs and dangers lurking, especially if you want to keep a close eye on your expenses? In this post, we take a close look at BNPL in Germany so that you can make an informed decision.

## What Is Buy Now, Pay Later (BNPL) Actually?

Basically, BNPL is a type of short-term credit offered to you when shopping. Instead of paying the full amount immediately, you can choose:

1. **Pay Later:** You receive the goods immediately but pay the invoice only after a certain period (often 14 or 30 days). This is basically the classic purchase on account, just often processed through an external service provider.
2. **Installment Payment (Online Partial Payment):** You split the purchase amount into several smaller installments, which are due over a few weeks or months.

The trick: Often advertised with "0% interest," at least for the short payment pause or the first installments. The processing is usually not handled by the merchant themselves but by a specialized financial service provider.

## Who Offers BNPL in Germany? An Overview of the Market Leaders

The German BNPL market is in motion and growing rapidly. You probably already know some providers:

* **Klarna:** The Swedish giant is probably the best-known BNPL provider. With **over 15 million active customers in Germany** ([Source: Onlinehändler News](https://www.onlinehaendler-news.de/themen/payment-finance/27439-angriff-paypal-klarna-erstmals-nutzerzahlen-deutschland#:~:text=Mehr%20als%2015%20Millionen%20Kunden,Angaben%2017%2C2%C2%A0Millionen%20Nutzer%20in%20Deutschland)), Klarna is widespread. Interestingly, not only young people use Klarna – even among **Millennials (approx. 26-41 years), it's 43%** and among **Generation X (older 30s/40s), still 36%** who specifically choose Klarna's BNPL function ([Source: Facebook/Opresnik](https://www.facebook.com/MarcOliverOpresnik/photos/onlinepayment-klarna-und-schulden-genz-lebt-h%C3%A4ufiger-auf-kreditein-potenziell-ge/680104893942868/#:~:text=43%20Prozent%20der%20Umfrageteilnehmer%20aus,36%20Prozent%29)).
* **PayPal "Pay Later":** Almost every online shop offers PayPal. And where PayPal is, the "Pay Later" option (payment after 30 days or installment payment) is often not far behind. According to EHI, **almost 95% of the top 1,000 online shops offer PayPal** ([Source: EHI Online-Payment Study 2023](https://www.ehi.org/wp-content/uploads/Downloads/Leseproben/2023_Online-Payment_Leseprobe.pdf#:~:text=des%20EHI%20geben%20mehr%20als,Weile%20besch%C3%A4ftigen%20und%20hat%20das)). This makes this BNPL variant extremely widespread.
* **Afterpay (now part of Riverty):** This provider is also growing strongly in Germany. Exact user numbers are rare, but indicators such as revenue growth of around 100% in the 2021 financial year ([Source: FinanceFWD](https://financefwd.com/de/buy-now-pay-later-trend/#:~:text=Das%20starke%20Wachstum%20schl%C3%A4gt%20sich,den%20Zahlen%20der%20Anbieter%20nieder)) and a general increase in small loan contracts by about 30% (often through BNPL) ([Source: Cardscout](https://www.cardscout.de/kreditkarten-news/buy-now-pay-later-verzeichnet-starkes-wachstum-in-deutschland#:~:text=Die%20Zahlungsmethode%20%E2%80%9EBuy%20now%2C%20pay,mit%2058%2C5%20Prozent%20besonders%20hoch)) show the dynamics.
* **Ratepay:** This provider specializes in invoice purchases and installment payments and is particularly popular with merchants with **higher-priced assortments such as electronics and furniture**. Here, customers appreciate the option to finance larger purchases through installments ([Source: Ratepay](https://www.ratepay.com/e-commerce-trends/warenkorbwert-erhoehen/#:~:text=Die%20Ratenzahlung%20eignet%20sich%20also,am%20liebsten%20per%20Ratenzahlung%20beglichen)).

## The Sunny Side: Why Is BNPL So Popular? (Advantages)

The growing popularity of BNPL doesn't come from nowhere. For you as a customer, there are some clear advantages:

* **Flexibility:** You don't have to come up with the full amount immediately but can postpone or split the payment. This creates financial leeway.
* **Convenience:** The process is usually seamlessly integrated into the checkout and completed with just a few clicks.
* **Check first, then pay:** This is particularly practical when buying clothes or shoes online. Around **45% of BNPL users appreciate being able to check the goods at leisure** before paying ([Source: E-Commerce Magazine](https://www.e-commerce-magazin.de/bnpl-wie-diese-bezahloption-die-kundenbindung-erhoehen-kann-a-b43398c0cba9d3f0247afd785d70a418/#:~:text=Mit%20Blick%20auf%20die%20Produkte,basierten%20und%20dem%20station%C3%A4ren%20Handel)). This reduces the risk of a bad purchase.
* **Sometimes interest-free:** Many providers entice with interest-free payment terms (e.g., 30 days) or installment plans without surcharge.
* **Bridging bottlenecks:** If an important purchase is pending, but your salary isn't coming until next week, BNPL can be a short-term solution.

BNPL is also worthwhile for merchants: Studies show that offering such options can **increase willingness to buy (conversion rate) and even the average shopping cart value**. For example, a study by the University of Frankfurt in cooperation with Ratepay found that a BNPL offer at a furniture retailer could **increase sales by about 20%** ([Source: Ratepay/Uni Frankfurt](https://www.ratepay.com/e-commerce-trends/bnpl-studie-uni-frankfurt/#:~:text=Die%20Studie%20beweist%20anhand%20eines,nur%20moderate%20Kosten%20verursacht%20haben)).

## The Dark Side: What Should You Watch Out For? (Disadvantages & Risks)

As tempting as BNPL sounds, it's important to know the potential disadvantages and risks - especially if you want to keep your finances under control:

1. **Danger of Over-indebtedness:** This is the biggest risk. The easy availability and small installments can tempt you to buy more than you can actually afford. You can quickly **lose track** of the many open amounts with different providers. The **Consumer Center NRW expressly warns** that BNPL can trigger a *"cost spiral with high interest rates and fees"* and, in the worst case, lead to a **debt trap** ([Source: Consumer Center NRW](https://www.verbraucherzentrale.nrw/pressemeldungen/presse-nrw/buy-now-pay-later-besserer-schutz-vor-ueberschuldungsrisiko-wichtig-95727#:~:text=Jetzt%20kaufen%2C%20sp%C3%A4ter%20zahlen%3A%20Die,fordert%20besseren%20Schutz%20f%C3%BCr%20K%C3%A4uferinnen)). Debt counseling services like Diakonie also report in 2024 about **increasingly more problem cases due to BNPL** ([Source: Diakonie Deutschland](https://www.diakonie.de/informieren/infothek/2024/juni/zunehmend-viele-menschen-verschulden-sich-wegen-buy-now-pay-later-angeboten#:~:text=Umfrage%3A%20Zweidrittel%20der%20gemeinn%C3%BCtzigen%20Schuldnerberatungsstellen,Problemf%C3%A4llen)).
2. **Hidden Costs and Fees:** The advertised "0% financing" often only applies for a short period or under certain conditions. If you miss a payment deadline, **high reminder fees and default interest** can accrue. For installment payments over longer periods, interest is often calculated from the outset. The Consumer Center NRW also criticizes the **lack of transparency** with some providers (e.g., Klarna): Often, multiple purchases are bundled in one contract, making it difficult to keep track of individual claims ([Source: Consumer Center NRW](https://www.verbraucherzentrale.nrw/pressemeldungen/presse-nrw/buy-now-pay-later-besserer-schutz-vor-ueberschuldungsrisiko-wichtig-95727#:~:text=f%C3%BCr%20den%20Ratenkauf%2C%20werden%20oft,%E2%80%9EGerade%20wer)). Small installments can quickly make the total debt seem larger than it appears at first glance.
3. **Impact on Your SCHUFA and Creditworthiness:** Yes, BNPL can also influence your creditworthiness! Legally, it's often a credit agreement. Birgit Vorberg from the Consumer Center NRW warns: Many small BNPL loans can ruin creditworthiness because you quickly lose track ([Source: FinanceFWD](https://financefwd.com/de/klarna-paypal-ratepay-schufa/#:~:text=Birgit%20Vorberg%2C%20Referentin%20f%C3%BCr%20die,den%20%C3%9Cberblick%20verliert%E2%80%9C%2C%20sagt%20sie)). Until now, many BNPL loans under 200 euros **were often granted without a SCHUFA check and not reported**. The problem: You could easily accumulate many such micro-loans without it being noticed ([Source: Cardscout](https://www.cardscout.de/kreditkarten-news/buy-now-pay-later-verzeichnet-starkes-wachstum-in-deutschland#:~:text=200%20Euro%2C%20die%20bislang%20meist,von%20vielen%20kleinen%20Krediten%20kann)). Important: If you miss payments, it can lead to a negative SCHUFA entry!
4. **Data Protection:** With every BNPL transaction, in addition to you and the merchant, other third parties are involved (Klarna, PayPal, Ratepay, etc.). This means you share your personal and financial data with additional companies. These usually conduct a creditworthiness check, often via credit bureaus such as SCHUFA. These inquiries and the loans themselves can (depending on their structure) influence your score.

## Practical Example: Anna's Furniture Purchase – How BNPL Can Look

Imagine Anna wants to buy a new sofa for €800. The online shop offers various payment methods, including BNPL via Provider X:

* **Option 1: "Payment in 30 Days":** Anna gets the sofa immediately and only has to pay after 30 days. If she pays on time, no additional costs are incurred. Great if she's waiting for her next salary.
* **Option 2: "Installment Payment over 12 Months":** Anna pays about €70 per month for 12 months. Sounds manageable at first. But: Provider X charges, for example, 9.9% interest p.a. effectively. In the end, Anna doesn't pay €800, but about €840. She needs to be aware of this.
* **The Risk:** Anna forgets to pay after 30 days (Option 1) or can't pay an installment (Option 2) on time. Now Provider X sends a reminder with reminder fees (e.g., €5) and charges default interest. If she still doesn't pay, collection proceedings and a negative SCHUFA entry are threatened.

This simple example shows: BNPL *can* be practical but involves additional costs and risks with interest or late payment.

## Using BNPL Responsibly: Your Checklist

So that you can use the advantages of BNPL without falling into the trap, here are a few tips for conscious handling:

1. **Budget Check:** Before each purchase, ask yourself if you could afford the product if you had to pay for it immediately. BNPL should not be a permanent solution to live beyond your means.
2. **Keep Track:** Use a maximum of one or two BNPL providers and keep track of your open payments and deadlines. Many providers have apps that help with this - use them actively!
3. **Understand Terms and Costs:** Read carefully: Are there interest charges? How high are reminder fees? What deadlines apply? Don't be blinded by "0%" advertising.
4. **Pay on Time:** Set reminders or use standing orders to avoid missing a deadline.
5. **Check Alternatives:** Is the purchase really necessary? Can you perhaps save up or are there cheaper alternatives?
6. **Caution with Many Small Amounts:** Many small BNPL purchases in particular can quickly add up and make it difficult to keep track.
7. **Seek Help:** If you notice that you're losing track or payments are becoming difficult, seek help early from a debt counseling center (e.g., from Caritas, Diakonie, or Consumer Centers).

## Legal Aspects & Current Trends: What's Changing?

The legislator has recognized the risks of BNPL. An important change is imminent: In the future, **EU-wide mandatory creditworthiness checks for BNPL loans under €200** will be introduced ([Source: Cardscout](https://www.cardscout.de/kreditkarten-news/buy-now-pay-later-verzeichnet-starkes-wachstum-in-deutschland#:~:text=verpflichtende%20Bonit%C3%A4tspr%C3%BCfung%20einzuf%C3%BChren,zu%20sch%C3%BCtzen%2C%20betont%20Ole%20Schr%C3%B6der)). This should help to better prevent over-indebtedness. SCHUFA is also working on special procedures to fairly evaluate BNPL data without unnecessarily burdening the score ([Source: FinanceFWD](https://financefwd.com/de/klarna-paypal-ratepay-schufa/#:~:text=Auskunfteien%20wie%20die%20Schufa%20registrieren,Aus%20dem%20aktuellen)). Consumer advocates are also calling for more transparency regarding costs and data processing.

## Conclusion: BNPL – Your Conscious Handling Decides

Buy Now, Pay Later is a convenient payment method that can offer you flexibility when shopping online. The possibility to check goods first or split larger purchases is attractive.

But: BNPL is not a free pass for unlimited consumption. The risks – above all the danger of over-indebtedness due to lack of overview and hidden costs – are real. Especially for you as someone who deals consciously with money, it's important to use BNPL with caution.

Use it as a tool, not as a crutch. Keep track of your expenses, understand the conditions, and pay on time. Then BNPL can be a sensible addition to your payment options. But if you notice that it tempts you into impulsive purchases or you lose track, you'd better steer clear of it.


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