5 minute read
WissenMachtSicher (Knowledge Provides Security
#WissenMachtSicher*
The Financial Life Park (FLiP) celebrated its fifth anniversary in 2021 with a study on young people’s financial literacy.
Advertisement
To mark its fifth anniversary in October 2021, the Financial Life Park, or FLiP, commissioned an independent study to examine where young people see deficits in their basic knowledge of economics and money management. This participatory youth report, funded by ERSTE Foundation, was produced by the independent organisation YEP (Youth Empowerment & Participation) - Stimme der Jugend in cooperation with FLiP in 2021. The YEP youth report #WissenMachtSicher (“Knowledge Provides Security”) explores the question as to what young people expect of the impact-oriented financial education of the future. More than 800 young people aged 14 to 20 participated in the YEP youth report #WissenMachtSicher throughout Austria, contributing both online and offline. The report was compiled from their perspectives, assessments, ideas and needs. Playful democracy-building workshops were held in all regions of Austria; attention was paid both to the representation of urban and rural areas and to a wide diversity of school types in order to reflect Austria’s entire educational landscape in the report.
The study’s key findings are:
Students consider financial education to be very important, but they have little confidence in the future and many don’t see themselves in an active role because they have too little knowledge and no one to discuss financial matters with.
Around 50 per cent of students feel hardly or not at all prepared for the future when it comes to financial literacy.
For young people, having “a good handle on money” implies being aware of and able to control their consumer behaviour as well as being familiar with and knowing how to use savings and investment products.
Young people have a strong desire to get a better grasp on money. This particularly applies to income opportunities in different professions, and acquisition costs as well as running costs of consumer goods.
Young people want to ask fundamental questions about financial policy, learn more about the background of our current financial system and also take a critical look at the system.
Young people want to understand everyday administrative tasks: administrative tasks and bureaucratic processes are some of the biggest causes for uncertainty among young people.
Young people identify three sources of financial education: schools, family and the Internet.
Young people see schools as the most important place for developing future financial skills. Compulsory schooling reaches all young people regardless of their family background and schools can provide accurate, independent information.
Currently, schools would receive an average rating of “satisfactory” for their financial education provision.
One third of young people say they talk very little or not at all about money at home.
Young people want to increase their financial capability through practical experience, by trying things out for themselves and through direct contact with trustworthy experts.
A study conducted by ASB Schuldnerberatungen GmbH in 2020 showed that a quarter of the clients of debt counselling centres in Austria are under 30 years old and have consumer debts of about 30,000 euros.
The Erste Financial Life Park (FLiP) is Austria’s most prominent financial education project. An interactive tour provides young people with the skills and competencies they need to make financial decisions in their lives. With its services, FLiP promotes financial self-responsibility, takes measures to avoid overindebtedness and thus contributes to preventing poverty.
YEP (Youth Empowerment &
Participation) - Stimme der Jugend (Voice of Youth) is an independent organisation and a social enterprise that aims to empower young people to get more actively involved; it works completely independently of party politics in order to bring in the authentic voice of youth. To this end, YEP partners with innovative organisations, companies and institutions to set up inclusive (youth) participation processes, thus creating new opportunities for participation.
financiallifepark.at
yepaustria.org
One in five young people has no clear idea of how much money they spend per month.
60%+
of young people said they knew little or nothing about financial literacy. of young people have already been worried about not being able to pay back money they have borrowed.
20%
How much do you know about financial literacy?
Total
11.5%
4
5%
5
23.2% 3
2
27.7% 32.6%
1
Di erence by Gender
How much do you know about financial literacy? % 35 30 25 20 15 10 5 0
1 2 3
4 (Scale: 1-5; 1 = “I know nothing about financial literacy”, 5 = “I know a lot about it”) boys girls
5
Have you ever been worried about not being able to pay back money you borrowed?
15.5%
Yes, I have been worried about that.
4.5%
Yes, I’ve often been worried about that.
21.8%
No, because I’ve never borrowed money.
58.2%
No, that has never happened (I only borrow money if I can pay it back).
Topics that young people consider to be exceptionally important and the order in which they prioritise these topics:
1 Taxes How do taxes work, what taxes exist and what do you have to pay and when?
2 Work environment, salary & career guidance How much will I earn in different professions? What can employees expect?
5 Security and subsidies How do I get help from the state? How do the public employment service, housing subsidies and education subsidies work?
6 Investments What can you do with your money to make sure it’s used well?
3 Budget and fixed costs How do I manage my money? What costs must I anticipate?
4 Contracts What should I look out for when signing a mobile phone contract or a rental agreement, for example?
7 Money and climate/sustainability What does money have to do with sustainability and the climate crisis? How can I invest sensibly?
8 Banks and the like What do banks and other financial institutions do?
