Personal financial goals: Financial independence is key
The desire to be financially independent is strong. The analysis shows that the most common financial goal among people in Germany is financial independence at 58.9%. This is closely followed by the solid goal of retirement provision at 51.4%. In addition, almost a third (31.8%) are pursuing the financial goal of freedom (e.g. no longer having to work).
When comparing generations, Generation Z stands out for its determination to shape its future: Financial independence, fulfilling wishes and life goals, freedom, buying a house and education expenses are the most common goals among the generations. In middle age, for Generation X retirement provision is the most frequently cited goal at 53.8%.
Question: What are your most important financial goals?
Question: What are your most important financial goals?
The results clearly show that financial independence is an important goal for many people. It is also clear that the prevailing mentality of working full-time until the age of 67 is no longer the norm. Generation Z in particular is fundamentally changing our understanding of money: for them, finances are not a necessary evil, but an essential tool for leading a self-determined life. Politicians and the financial sector must finally acknowledge this reality.”
Prof. Dr Johannes Treu
Professor of General Business Administration and Economics at IU International University of Applied Sciences
Almost half of all respondents have their finances well under control
Despite the concern and uncertainty felt by many due to the current economic climate, some members of the population are confident when it comes to managing their personal finances. The IU study shows that almost half (48.9%) agree completely or somewhat with the statement: “Thanks to my knowledge of finance, I have my financial situation well under control.”. This feeling is spread relatively evenly across all generations.
Question: To what extent do you agree with the following statement? “Thanks to my knowledge of finance, I have my financial situation well under control.”
Excerpt from the statements surveyed
Question: To what extent do you agree with the following statement? “Thanks to my knowledge of finance, I have my financial situation well under control.”
Excerpt from the statements surveyed
Almost half of those surveyed have their finances under control – but conversely, this means that more than one in two do not feel financially secure. This loss of control has drastic consequences: those who do not manage their finances well are more likely to slip into excessive debt and make riskier decisions out of necessity.”
Prof. Dr Johannes Treu
Professor of General Business Administration and Economics at IU International University of Applied Sciences
For the majority, finances are not an unpleasant topic
Reluctance to deal with finances? The IU study paints a different picture: 53.0% of respondents tend to disagree or strongly disagree with the statement: “I don’t like dealing with my financial affairs because I find the subject unpleasant.”. If we include the “Partly agree” responses, the figure rises to 77.2% who are rather positive about the topic.
Question: To what extent do you agree with the following statement? “I don’t like dealing with my financial affairs because I find the subject unpleasant.”
Excerpt from the statements surveyed
Focus topic
The younger generation and money matters
While financial independence is one of the most important financial goals for many people, the IU study on financial well-being also highlights challenges and obstacles when it comes to finances, especially among Generation Z. So what about the financial factors that influence them, their financial decisions and their overview of their own financial situation? The results in detail:
Spontaneous spending thwarts financial goals
The IU study on financial well-being shows a clear trend: the younger the respondents, the more often they spend their money without thinking. By way of comparison, 27.8% of Generation Z respondents completely agree or tend to agree with the statement, “I often spend money without thinking, even though I actually wanted to save it for long-term financial goals.” Among baby boomers, the figure is less than half that (13.7%).
Question: To what extent do you agree with the following statement? “I often spend money without thinking, even though I actually wanted to save it for long-term financial goals.”
Excerpt from the statements surveyed
One in six people from Generation Z does not have an overview of their finances
Income, expenditure, debts or assets: 75.1% of people in Germany tend to disagree or strongly disagree with the statement “I don’t have an overview of my income, expenses, debts and assets”.
Interestingly, almost one in six people between the ages of 16 and 30 (16.3%) completely agree or tend to agree that they do not have an overview of their own financial situation. If we include the “Partly agree” responses, it is more than one in three. On the other hand, of the baby boomers, one in twenty (4.9%) completely agree or tend to agree with the statement.
Question: To what extent do you agree with the following statement? “I don’t have an overview of my income, expenses, debts and assets.”
Excerpt from the statements surveyed
Influence of social media on financial decisions
Whether through financial influencers, viral investment tips or tempting shopping offers, Generation Z is particularly susceptible to social media influence compared to other age groups. The results of the study show a significantly higher influence among young people: Generation Z is more than twice as likely as baby boomers to say that social media influences their financial decisions.
Question: To what extent do you agree with the following statement? “My financial decisions are influenced by what I see on social media about lifestyle and shopping.”
Excerpt from the statements surveyed
Family and friends as a “financial advisor”
Some people say that their social circle plays an important role when it comes to making financial decisions. 54.5% of Generation Z respondents completely agree or tend to agree that role models from their family or circle of friends are important for responsible money management. If we include the “Partly agree” responses, the figure rises to over three quarters of Generation Z. This influence decreases significantly with age.
Question: To what extent do you agree with the following statement? “I have role models within my social circle (e.g. family, school and friends) who support me in handling money responsibly.”
Excerpt from the statements surveyed
Generation Z wants to actively shape its financial future, but often lacks the knowledge to understand financial products. This makes them susceptible to external influences. TikTok videos and financial influencers have a greater impact on their decisions than expert advice. This is a highly dangerous development, as not every self-proclaimed financial guru provides reliable solutions. Therefore, young people urgently need a compass to navigate the world of finance. They need to learn to distinguish between mere advertising and genuine expertise.”
Prof. Dr Johannes Treu
Professor of General Business Administration and Economics at IU International University of Applied Sciences
