Investment: young people do everything differently – economics

It was a strange paradox that was discovered during the pandemic: No one knew what was going to happen to their money, what would happen to the economy and the stock market and stocks. Yet people have invested their money like crazy. While there was uncertainty and fear in the real world, none of this was felt in the stock market for a long time. There was even a real market hype.

Although many more people in this country are interested in financial matters, at the same time, one in three Germans report insufficient or insufficient financial knowledge. This is shown by an investigation by Postbank, which the Süddeutsche Zeitung received exclusively in advance. The danger: Many people could go public even if they have no idea what the investments are. Just because everyone else is doing it. “If you lack knowledge, it is easy to make bad decisions, to invest your money in an unprofitable or too risky way – with negative consequences for your own assets and your retirement provision”, explains Karsten Rausch, securities expert securities at Postbank.

But just because more and more people are interested in financial investments does not mean that people are talking about it: the widespread expression “You don’t talk about money” is still used in Germany. According to the survey, 70% of people questioned believe that we are not talking about money. Especially when it comes to their debts, the Germans are silent. No one wants to admit their own mistakes.

Corona keeps a lot of money on the high edge

But the survey also shows that young people don’t keep as many secrets about their money as older people. Almost 80 percent of 30-year-olds discuss their income in public, compared to about 46 percent of 50 to 59-year-olds. Showing one’s own financial success is also frowned upon among older people: only 5.5% of Germans who are financially successful do not hide it. Respondents under the age of 30 tend not to hide their financial success or failure.

So a generation is growing up that is much more open to money, stocks or so-called exchange-traded funds (ETFs) than the older generation. It also has to do with Corona. According to Postbank’s representative survey last year, 9.6 of the total population have dared to go public since the start of the pandemic.

On the one hand, the ever higher prices are tempting. On the other hand, they were able to spend less money on leisure, the holidays are canceled, but the income remains the same. This creates – more or less unintentionally – financial cushions. And with neo brokers like “Trade Republic” that have very low fees and are easy to use, this trend is growing more and more. What will happen in the next crash remains to be seen.

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