Survey: 85% of Young People in Luxembourg Want to Better Understand Personal Finance

A survey carried out by Luxembourg-based market researcher Quest has revealed that most young people in the Grand Duchy desire a better understanding of personal finance concepts.

This survey on financial literacy among young people in Luxembourg was carried out in two waves between 26 April and 27 July 2023 to explore and quantify young people's attitudes to financial education.

According to data collected from a random sample of young people, 85% wanted to better understand personal finance concepts. In addition, more than a third of young people (38%) admitted to feeling overwhelmed by financial issues, with an even higher percentage of 50% among young women. Another interpretation suggested that this disparity could be due to young men overestimating their financial knowledge.

The role of education in this issue is clear, according to Quest, with responsibility shared between schools and parents. However, this responsibility was found to be only partially assumed. On the one hand, most young people seemed to learn their first notions of saving and financial management from their parents. On the other hand, the survey found that most parents failed to teach their children the fundamental concepts of investment.

School also seemed to be largely absent from this learning process. Only 21% of the young people surveyed felt that their schools adequately prepared them to manage their personal finances.

Moreover, the survey results showed a "worrying" trend among young people when it comes to using credit. More than 40% of respondents considered credit to be an appropriate means of acquiring household equipment, and one young person in five considered it acceptable to take out credit to finance a holiday. This propensity to use credit was more pronounced among the youngest interviewees.

Carlo Kissen, founder of Quest, commented: "We need more robust educational initiatives, both at school and at home, to equip young people with the financial skills that are essential for their future. We teach a lot of trivia... investing in young people's financial education is investing in a more stable, informed and empowered future."