What is your financial knowledge?

When it comes to topics such as finance and economics, schools should properly teach the first content. In practice, however, it has been proven many times that this area is criminally neglected. Instead, young people learn in a self-didactic way, but for this they need the right resources. Instead of using teachers’ knowledge, they use online offerings such as the online magazine Modern Wealth, which does valuable educational work and provides information about the financial sector. There is definitely an interest in finance, but there seems to be a lack of willingness to impart relevant knowledge, especially in schools.

“We know too little” – teenagers are strict with each other

In the Union Investment survey, young people were asked about their financial knowledge and constantly admitted their weaknesses. They describe the knowledge provided by the school as insufficient, but also admit that they themselves often show too little interest. Yet young people have a clear idea of ​​who should actually be teaching them.

85 percent are convinced that this is the task of the school, and only 69 percent. burdens parents. According to young people, however, this task rarely falls on the media or financial institutions.

Even more frightening is the fact that only 19 percent. young people assess their financial knowledge as good or even very good, most of them would assess their knowledge as insufficient. At the same time, however, they recognized the importance of the topic, and most believe that sufficient financial literacy is essential to survival.

Interest yes – knowledge no – what needs to be done now

Terrifying results have also been brought out by empirical studies of a banking association with young people. 14 to 24-year-old young people from Germany were interviewed, and four out of ten could not even explain the significance of the inflation rate. Even nine out of ten young people could not tell what the current inflation situation was. This once again shows what severe deficits young people have to live with, which can have a significant impact on their daily lives.

So it is high time to introduce a financial driver’s license and ensure that the entire capitalist system is processed in a way that young people can understand. While most people know that money is essential for survival, when it comes to more complex issues, big question marks hang over people’s heads.

But how do you teach business topics at school when there are no well-trained teachers? Teaching economic content is a very sensitive topic. Many teachers have ideological ideas that play a role. They want to avoid the economization of teaching and thus miss the opportunity to provide young people with important knowledge about their future.

Why is financial knowledge so important

But why is it so important that young people are educated not only in politics but also in finance? It is a step forward that can change young people’s everyday lives forever. Anyone unfamiliar with the economic specifics of today’s complex everyday life is always running the risk of being in debt. To secure your own life and deal with issues such as capital, investment and more, many OECD countries are considering a financial driver’s license.

Its purpose is to provide young people with a basic level of financial literacy and ensure that more valuable content is truly understood. Debt counseling services already offer this driving license in some places in order to lower the debt rate that has risen among young people in recent years. Too carelessly handling money can quickly lead to young people getting into debt and then possibly falling into a debt trap before leaving school.

Saving has become important for young people

Another picture emerges from the topic of saving among young people because it shows that money is not thrown out of the window with hands full. Saving has become a true trend among young people, with about 85 percent saying they save some of their money each month and put it aside. It is also surprising that most of the 1,000 young people interviewed said they had around € 482 a month at their disposal.

This average is slightly higher because the target group of the respondents also includes people under 25 who have already started their professional careers. Based on € 482, young people save € 141 on average, which corresponds to a savings rate of almost 29%.

How is he saved? The classics are still used, according to the survey, about 64 percent. puts its capital in a savings book or uses a savings plan. Accounts with telephone money and savings contracts are definitely less popular when it comes to investments such as stocks and funds, only 12%. are more willing to take risks, more often men than women. Only four percent have life insurance, and the Riester pension is no more popular at five percent.

Concrete knowledge is also necessary for subsequent capital investments

Knowing about finances is not just about being able to live your daily life and depositing X amount into a savings account from time to time. Germany is a country of securities and young investors should know their options right from the start. Today, anyone can invest in cryptocurrencies, stocks and funds thanks to online brokers and investment opportunities. Stock ownership is increasing, even among young people, but without proper knowledge there is great danger here.

Two out of three young respondents said they imagine investing in stocks. In times of low interest rates, this can be an important step, but without specialist knowledge, huge problems can quickly arise. The fall in the level of pensions shows young people that they have to provide for old age insurance and can no longer count on a pension payment.

It is from this point of view that it is so important to have enough knowledge at a young age to invest long-term capital and not fall into the debt trap of bad investments. Your contact persons should be people who are not prejudiced and exclude certain investments such as cryptocurrencies from the outset due to a lack of knowledge. Neutral and information education is the most important thing that prepares young people for their future.

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