A reason or cause connected with financial expenses or savings. The term is usually used in the plural ('aus Kostengründen', for cost reasons) to justify a decision.
example
Die geplante Feier wurde aus Kostengründen abgesagt.
The planned celebration was canceled for cost reasons.
Usage tips
Compound word
The word is made up of 'Kosten' (costs, plural of 'die Kosten') and 'Grund' (reason). So it literally means a 'reason that has to do with costs.'
EXAMPLE
Der Hauptgrund für die Verzögerung ist ein Kostengrund.
The main reason for the delay is a cost-related reason.
Fixed expression
This word is used almost exclusively in the plural in the fixed expression 'aus Kostengründen' (for cost reasons). This phrase justifies a decision with financial considerations.
EXAMPLE
Das Projekt wurde leider aus Kostengründen gestoppt.
Unfortunately, the project was stopped for cost reasons.
Register and style
The expression 'aus Kostengründen' (for cost reasons) is typical of formal written language, for example in business emails, official announcements, or news reports.
EXAMPLE
Die Fluggesellschaft teilte mit, dass die Strecke aus Kostengründen eingestellt wird.
The airline announced that the route will be discontinued for cost reasons.
Compare with
near_synonym · confusable
Kostengrund vs Grund
reason / ground
'der Grund' and 'der Kostengrund' both name a cause or justification. 'der Grund' is general and can refer to almost any kind of cause. 'der Kostengrund' is much more specific: it is always about money, that is, expenses, savings, or a budget. The word very often appears in the plural in the form 'aus Kostengründen' (for cost reasons). Learners may confuse the words because 'Kostengrund' is like a special type of 'Grund'. If money is not the point, simply say 'Grund'. If a decision is made because of costs, 'aus Kostengründen' is more precise.
Kostengrund
Aus Kostengründen fährt die Familie dieses Jahr nicht in den Urlaub.
For cost reasons, the family is not going on vacation this year.
Grund
Der Grund für den Streit war ein Missverständnis.
The reason for the argument was a misunderstanding.