Lack of Knowledge Prevails Among Many Germans Regarding Investing Practices
In a recent survey, German adults have expressed their views on the credibility of finfluencers - individuals who share financial advice on social media platforms like YouTube, Instagram, and TikTok. The results paint a picture of a cautious and sceptical public when it comes to seeking financial advice from these influencers.
According to the survey, a staggering 77.6% of participants expressed skepticism or disapproval of finfluencers as a source of financial information. This sentiment was echoed by Thomas Brosch, head of digital sales at Postbank, who asserted that "Likes and followers are not a quality seal."
The survey also revealed that older generations are less likely to rely on finfluencers. Only 3.2% of those over 55 found finfluencers important as a source of financial information, while 8.5% of 45-54 year-olds held a similar view. In contrast, younger respondents, particularly those aged 18-24, were more inclined to value finfluencers, with 29.6% finding them important.
The Federal Financial Supervisory Authority (BaFin) noted in an analysis last fall that while there are good information offerings and serious advice in social networks, there are also false or partially correct representations. Consumer protection agencies and financial regulators advise caution when considering investment tips on social media.
When asked where the largest portion of their savings is kept, most savers cited their current account (19.6%), followed by savings accounts (18.5%), and cash at home or in a safe (5.1%). This suggests that many savers are keeping their money in low-interest accounts or at home, potentially missing out on potential growth opportunities.
Online financial platforms and bank consultations are options for about one-fifth of the survey participants. Among those who seek advice on saving or investing, 23.8% turn to family or friends. Marc Tüngler, CEO of the German Shareholder Protection Association (DSW), recommends always thoroughly checking the background of self-proclaimed financial experts online.
The survey also highlighted the importance of financial education. A concerning 34.6% of the 2,001 adults surveyed in Germany rated their personal financial knowledge as poor or nonexistent.
Younger generations in Germany who engage financially primarily use digital and social media platforms, online forums, and specialized financial news websites to expand their knowledge and make investment decisions. They value transparent, easily accessible, and socially responsible investment information tailored to their preferences and long-term wealth building.
In conclusion, while finfluencers may be popular among some demographics, the majority of Germans approach their financial advice with a healthy dose of skepticism. It is crucial for consumers to critically examine any information that leads to an investment decision and to seek advice from reliable sources.
