A recent survey conducted by the Federation of German Volksbanks and Raiffeisenbanks (BVR), reported by Funke Media Group, reveals a significant disconnect among young people in Germany: while the 18-to-30 age group widely recognizes the importance of managing their finances, many feel uncertain and anxious about doing so.
Though approximately 80 percent of young adults consider mastering their finances crucial, only 45 percent report feeling confident about financial topics. Furthermore, more than half of respondents (54 percent) admit to being afraid of making mistakes when making financial decisions. Researchers surveyed 2,013 individuals between the ages of 18 and 30 for this study, noting that the lack of security is particularly pronounced among young women, who report a confidence level of 36 percent, compared to 53 percent for men.
Finances are a constant part of life for young adults, with 72 percent of those surveyed engaging with financial issues at least once a week. However, difficulties persist with the subject matter: 46 percent find financial topics complicated, and 44 percent feel frequently overwhelmed by them.
According to Marija Kolak, President of the BVR, while financial matters are normal for the younger generation, the results demonstrate that confidence in making sound financial choices is often lacking. She stresses that financial education must therefore be practical, easily accessible, and relevant to real-life situations.
When young adults approach their finances, saving is the most common focus, with 71 percent currently concentrating on this. Daily expenses and budgeting take second place, capturing 55 percent of respondents, followed by investments such as stocks or ETFs, which interest 43 percent. Notably, only 23 percent are focused on retirement planning.
Information retrieval is highly digitized for this demographic. Researchers found that 42 percent seek financial information via social media platforms like Instagram or TikTok, while 41 percent use YouTube or podcasts and search engines, respectively. Thirty-four percent already utilize artificial intelligence tools such as ChatGPT. Banks and financial consultants serve as a source for 27 percent, while only nine percent obtain financial knowledge through schooling, vocational training, or university.
When it comes to trust, banks and banking consultants, as well as family, friends, and acquaintances, are the most trusted sources, each cited by 62 percent of respondents. In contrast, social media only garners the trust of 30 percent. Many surveyed expressed a strong desire for easily understandable guidance on financial matters (58 percent). Specific needs cited include advice regarding a first job or income (37 percent), making a first investment (34 percent), and moving into a first private residence (34 percent).
Nevertheless, the survey found that attempts to engage with financial education often fail due to practical obstacles. The most common barriers cited are a lack of time (38 percent) and content that is too complicated (37 percent). Additionally, some respondents cite mistrust in the provider, fear of hidden advertising, or fear of sales pressure.
