Lack of Knowledge Prevails Among Germans Regarding Investment Matters
In a recent survey conducted by Postbank, it was revealed that younger Germans are drawn to financial experts on social media platforms such as Instagram and TikTok. These experts, who frequently post about investing, saving, and trends like cryptocurrencies, are popular due to their accessible, practical advice in formats that resonate with younger audiences.
However, caution is advised when it comes to taking investment decisions based on information from these sources. Thomas Brosch, the head of digital sales at Postbank, emphasises the importance of critically examining any information before making an investment decision.
The Federal Financial Supervisory Authority (BaFin) shares similar concerns, warning of false or partially correct representations in social networks. Consumer protection agencies and financial regulators echo these sentiments, urging caution when it comes to investment tips on social media.
Despite this, the survey found that more than a quarter (26.7%) of respondents do not seek any financial information at all. Among those who do seek advice, family or friends are the primary sources (23.8%). Online financial platforms and bank consultations are options for about one in five of those surveyed.
So-called 'Finfluencers', who discuss financial topics on social media platforms like YouTube, Instagram, and TikTok, are not considered important information sources by most survey participants. In fact, "likes and followers are not a quality seal" according to the survey, suggesting skepticism towards the credibility of Finfluencers based on their social media presence.
Interestingly, younger respondents (18-24 year-olds) are more likely to value Finfluencers as important information sources, with 29.6% saying so. However, more than three-quarters (77.6%) of survey participants express skepticism or disapproval towards Finfluencers as information sources.
Among older age groups, the preference for Finfluencers as a source of financial information is significantly lower. Just 3.2% of those over 55 say Finfluencers are important information sources. Marc Tüngler, CEO of the German Shareholder Protection Association (DSW), recommends performing background checks on self-proclaimed financial experts online.
The largest portion of savings is kept in current accounts (19.6%), followed by instant-access savings accounts (18.5%), and cash at home or in a safe (5.1%). Investment funds and ETFs are the first choice for 10.4% of savers, followed closely by self-owned real estate (10.2%).
The survey also revealed that more than one-third (34.6%) of the 2,001 adults surveyed in Germany rated their personal financial knowledge as poor or nonexistent. This underscores the need for education and responsible financial advice, whether from trusted sources or verified experts.
In conclusion, while Finfluencers may offer accessible financial advice, it is crucial to approach their content with a critical eye. Consumer protection agencies, financial regulators, and Postbank all advise caution when it comes to investment tips on social media. For those seeking financial advice, it is always best to consult trusted sources and perform thorough research before making any decisions.
