Young people in Germany show financial illiteracy

Many young people in Germany have gaps in their knowledge about economic and financial issues, a study released today revealed. Most respondents could not explain basic concepts such as Dax, performance and liquidity, according to the survey of the online bank Comdirect.

In total, 1,600 people between 16 and 25 years were questioned for the survey. In the meantime, most young people did know what is behind interests or actions. However, more than a third could not explain what inflation means and, about 40 percent, what a savings plan is. In the first place, the German media group RND had reported.

The Comdirect chief, Arno Walter, commented that the fact that many young adults do not understand a lexicon that belongs to general knowledge demonstrates the weakness of their training in finance.

In relation to other results of this study, Walter noted that, however, many young people are openly in favor of learning economics and finance in school. 92 percent said they were in favor of a matter of finance and 49 percent even thought it should be a compulsory subject.

Many young people are aware of their knowledge gaps in finance, the study revealed. On average, respondents rated themselves with a school grade of 3.3. The majority indicated that they report on their own on financial issues through the media.

The Comdirect study is not the first to reveal the knowledge gaps between German citizens in the economy and finance sector, and not only among young people. Both banks and different economic associations have long been pronouncing themselves in favor of more economics content being taught in schools.

Source: dpa