Young people see investing as an important way to build financial security for the future. Yet a large proportion of them do not have enough knowledge to get started responsibly. Representative research by Kieskompas shows that young people favor more financial education in education.
Nearly 90% of 18- to 34-year-olds say they may want to start investing in the next few years. At the same time, nearly half of non-investors (47%) say lack of knowledge is the main reason they have not yet started.
"This shows that although young people have the willingness, they are not yet sufficiently equipped to start up responsibly," said Jeroen van Wijngaarden, general director of DUFAS. "In doing so, a lot of potential is lost, not only for young people themselves, but also for the economy."
According to DUFAS, it is therefore essential to structurally embed financial education in education. And not only DUFAS says this. The survey shows that almost 90% of the Dutch believe that financial education should become a compulsory part of secondary education.
In addition to education, there is also a role for the government in removing barriers to investing. An example of how it can be done is Sweden's ISK, a tax-deferred and simple investment account. Last week, the European Commission presented recommendations for countries to introduce a similar system. The research shows that 50% of non-investing Dutch people say they see opportunities to start investing through such an account.
"By lowering barriers, we make investing more accessible to everyone, while at the same time this money strengthens the economy," Van Wijngaarden said. "Now that the Commission has published the recommendations, the ball is on the dot for the Netherlands. It is up to a new cabinet to shoot it in."
In addition, the survey reveals that nearly 2/3 of Dutch people want the government to provide more insight into the risks of capital loss in savings (as much as 62%). Low returns on savings accounts are evaporating due to inflation, leaving Dutch people facing declining wealth. In contrast, investing has a historical average return of 5.2% (after inflation). More honest communication gives people a better understanding of their financial situation.
Other interesting results from the study:
- People are aware of low savings rates and high inflation, but lack the knowledge to start investing
77% of people agree that saving due to inflation and low savings rates pays too little, and 47% say they do not invest because of lack of knowledge. - Financial education is widely supported
Nearly 90% think financial education should be a mandatory part of high school education. - People who invest worry less about their financial security
People who already invest are significantly more likely to report that they feel more financially secure for the future (about 70%) compared with non-investors (about 50%) - Better protection from finfluencers receives massive support
More than 90% of respondents indt that young people should be better protected from risky investment advice from influencers. - People want more balanced communication about saving and investing
More than half of Dutch people (>60%) think the government should emphasize not only risks of investing, but also those of loss of purchasing power when saving. - Investing and saving are often mutually exclusive
Those who invest are on average less likely to save monthly (only 30% of investors structurally set aside money) than non-investors (55%). And vice versa: those who save a lot, invest less often. - Strong variation in invested assets; investing is not just for the 'rich'
Among investors, invested assets vary widely: 40% have less than €10,000 invested; about 20% between €10,000 and €50,000; 10% more than €100,000. This indicates a highly dispersed investor component within the population. - People get their knowledge about investing mostly from their own research
Nearly 70% report gaining knowledge about investing from their own research. Young people also regularly consult their social circles (38%) - Investing is more popular among young people
In the 18-34 age group, about 35% invest, compared to about 20% among 35-54 and 15% among 55+. - Young people show more willingness to invest
A quarter of young people currently plan to invest. With more information and resources, that would rise to nearly 90%.
Among older people (50+), almost no one says a resounding "yes" to this question, and even with additional information and resources, less than 30% would take the plunge into investing. - Education level shows large differences
Highly educated people invest almost twice as often (about 30%) as low educated people (15%). They are also more likely to report having sufficient knowledge (45% vs. 20%). Click on the image to watch the video:
