Financial Literacy among the Youth in Switzerland

Abstract

While many resources are available for people to increase their financial knowledge in Switzerland, recent studies indicate that the level of financial literacy is relatively low across nations. To gather the data, a quantitative online survey was conducted among young people in Switzerland. Overall, important demographic differences in financial literacy levels were found for the gender and education variables. Firstly, young men show a higher financial literacy score than women and invest more than women. In addition, individuals with a university degree scored better at the financial literacy questions than those without and were more likely to invest. However, no conclusion could be made about the relation ship between income and financial literacy. The main reason why people did not invest constitutes a lack of knowledge. Unsurprisingly, individuals with lower financial literacy tend to make more financial mistakes, save less for retirement, and accumulate less wealth in their lives.