Financial education and provision: Young people want to talk about money

Many young people are concerned with the topic of loss of purchasing power and old-age provision. Youth researchers observe that it is no longer true for them that money is not talked about. What is also striking is that young people save differently today.

You don’t talk about money: That was once. Young people today say: You have to talk about money. Because many are afraid of the future. So does Patricia, a student from Frankfurt. She asks herself many questions: “Can I even afford to live my life the way I would like? Can I afford the property? Can I afford the children? Can I afford the children on my own? Do I have to work until 80 and start saving now?”

Many save early – new focus on stocks

The consequence is that many are already putting money aside – even if it is difficult in the middle of their studies or training. What is striking: young people save differently than they used to, explains youth researcher Klaus Hurrelmann. “They see that traditional investments didn’t work in times of low interest rates. They also see that private pension insurance, the so-called Riester pension insurance, doesn’t work properly and they are looking for alternatives. The shares have clearly gained in position and are even number one among young people at the moment.”

This is also due to the fact that investing has become easier today: while you used to have to call your house bank and pay high fees, there are now apps for that. It’s very easy to download. Another advantage: You can start with very small amounts.

Seriousness of offers often not recognizable

However, according to Hurrelmann: “We have a downside. Of course, some of the digital offers are not transparent, not controllable. It is not immediately obvious, even for an enlightened user from the younger generation, whether this is serious.”

Yevgeniy finds out about investment opportunities online. Many do it like him. “I’ve also read a few books about it. But since I understood the basic things, I keep my knowledge up to date with YouTubers. They also make it approachable, relaxed.”

The correct handling of money

There are different strategies to save for old age. Those who, like Yevgeniy, say: “Investments must be made right now so that inflation doesn’t eat up my money.” Others are like Patricia. Above all, she wants one thing: “At the moment, precaution is not going into debt for me.”

For youth researcher Simon Schnetzer, the foundation must therefore be laid early on for the correct handling of money. “We need financial education for young people, and that means: How can you secure yourself for old age? What is debt? What is interest, compound interest? But how can you also do a tax return in such a way that you can use what you are worked out accordingly also handled?”

Many who manage to invest money early are more optimistic about the future. Many who fail to do so are more concerned. But what unites most is that you can’t afford not to think about money.