German investors in the financial jungle: Who can help with money questions?

German investors in the financial jungle: Who can help with money questions?

In Germany there are big gaps in knowledge when it comes to investing. According to a recent survey by YouGov for Postbank, 34.6% of Germans rate their knowledge of financial topics as inadequate or non-existent. In addition, 26.7% of those surveyed do not inform themselves about finances at all. This demonstrates the need for sound financial knowledge in an increasingly complex economic world.

Those surveyed who seek investment advice often turn to trusted sources. 23.8% rely primarily on family or friends. Financial platforms on the Internet and banking advice are sources of information for around 20% of survey participants. Nevertheless, 77.6% of participants do not see finfluencers on social media as an important source of investment tips. This is particularly evident among older respondents: While 29.6% of 18 to 24 year olds consider finfluencers to be important, this is only 8.5% of 45 to 54 year olds and only 3.2% of those over 55.

The role of finfluencers

Given the change in information gathering, finfluencers are playing an increasingly important role, especially among the younger generation. A survey by BaFin from May 2024 shows that more than half of investors from generations Y and Z rate social media as a reliable source of information on financial topics. Popular platforms are YouTube and Instagram.

Over 50% of respondents said they had received information on financial topics from finfluencers. These trends correlate with an increase in investments: 32% have invested in crypto assets in the last two years, a significant increase compared to previous years. Social media-savvy users in particular have invested in more asset classes, including securities and precious metals.

Beware of dubious investment tips

However, BaFin warns against unreflective trust in investment tips from social media. Thomas Brosch from Postbank emphasizes that likes and followers should in no way be viewed as a seal of quality. It is important to examine information critically. Marc Tüngler from DSW also advises carefully checking financial professionals online.

The danger of dubious tipsters is real, as 37% of respondents do not know that finfluencers are often paid for their recommendations. It is therefore particularly important for young investors to obtain comprehensive information and seek protection from unreliable investment tips. BaFin offers helpful information and tips on protecting against investment fraud on its website.

Financial behavior of Germans

Despite the growing interest in financial topics, many young people continue to store the majority of their money in interest-free checking accounts. According to the survey, 19.6% of savers keep most of their savings in checking accounts, 18.5% in money market accounts and 5.1% in cash at home. Only 10.4% rely on stock funds or ETFs, which indicates a certain mistrust or lack of knowledge regarding alternative forms of investment.

Overall, the desire for more education and secure sources of information in the area of ​​investments is essential in order to improve Germans' financial education and build long-term assets.