Lack of Understanding Among Germans Regarding Investments Is Prevalent
In a recent survey conducted by Postbank, it was revealed that the younger generations in Germany, particularly Generation Z (ages 15 to 30), are showing a significant interest in financial experts on social media as a source of financial information. This shift is likely due to their upbringing with the internet and social media, favouring quick, simplified financial information on platforms like TikTok over traditional economic media.
However, the survey also showed that these young people are more likely to keep substantial amounts of money in uninteresting checking accounts, hoard cash at home, or prefer instant-access savings accounts. This contradiction between their interest in financial topics and their conservative approach to savings is intriguing.
The skepticism towards so-called "Finfluencers" as sources of financial information is also evident in the survey, with over three-quarters (77.6%) of participants expressing skepticism or disapproval. Likes and followers are not considered a quality seal by survey participants, consumer protection agencies, financial authorities, or Postbank.
Family or friends are the primary sources of advice on how to save or invest for 23.8% of those who seek advice. Financial platforms on the internet or advice from a bank are options for about one-fifth of those seeking advice. The CEO of the German Shareholder Protection Association (DSW), Marc Tüngler, recommends conducting background checks on self-proclaimed financial experts on the internet.
Thomas Brosch, head of digital sales at Postbank, advises a critical examination of any information leading to an investment decision. Consumer protection agencies and financial authorities also warn about false or partially correct representations on social networks. The Federal Financial Supervisory Authority (BaFin) urges caution when receiving investment tips on social media.
In the survey, the majority of savers kept the largest portion of their savings in checking accounts, followed by instant-access savings accounts and cash at home or in a safe. Intriguingly, more than a quarter (26.7%) of those surveyed in early July said they do not seek information about finances at all. This lack of financial knowledge was also reflected in the survey, with 34.6% of the 2,001 adults surveyed rating their personal financial knowledge as poor or stating they had no knowledge at all.
The trend of young people turning to social media for financial advice is a growing phenomenon, but it is crucial to approach such information with caution. The survey results highlight the need for financial education and the importance of seeking advice from reliable sources.
