| Tobias Seifried
|
08.09.2024
According to a recent survey, more than half of people in this country consider their own financial education to be good. The high-flying savings accounts are likely to end soon due to interest rate cuts. The average loan amount borrowed has recently risen to more than 135,000 euros.
As the current savings and credit forecast from Erste Bank shows, more than half of Austrians (56 percent) rate their own financial knowledge as “good” (44 percent) or “very good” (12 percent). A third (33 percent) rate themselves as mediocre, eight percent as “rather not good”, and three percent even as “not good at all”. Men (61 percent) therefore see themselves as better equipped in terms of financial education than women (52 percent). Gerda Holzinger-BurgstallerCEO of Erste Bank Oesterreich, said: “We see that the numerous initiatives in financial education over the last few years are paying off.” But we must not let up, because there is still a lot of catching up to do and the topic is too important: “A well-founded approach to managing your own finances is the basis for a self-determined life.”
Securities in greater demand year-on-year
The survey also shows that the savings account remains the most popular form of investment among Austrians, with 55 percent using it. However, the steep increase in popularity of the last few quarters is over. Not least thanks to the increase in interest rates, 60 percent used the classic savings account in the third quarter of 2023, and even 61 percent in the fourth quarter of 2023 and the first quarter of 2024. That has changed with the recent interest rate cuts, says Holzinger-Burgstaller: “The Austrians have certainly recognized the increased interest rate environment and taken advantage of it. With the ECB’s first interest rate cut, alternative asset classes are once again coming into focus for many investors.”
The survey confirms this, as securities (35 percent) such as stocks, funds and bonds have become more popular with Austrians and have increased by three percentage points year-on-year. There are hardly any changes in building society savings (35 percent, -1 PP), pension provision (28 percent, -1 PP), gold (18 percent, -1 PP) or real estate (15 percent, -2 PP). One in five people are not planning to invest any money in the next twelve months. On average, Austrians plan to put aside around 4,000 euros in the next twelve months – a decrease of almost 35 percent year-on-year.
Trend towards higher financing volumes
According to the survey, 35 percent (-1 percentage point/pp) of Austrians planned a major purchase in the second quarter, from buying a new car to investing in their own home. The younger age groups up to 29 years (40 percent, -2 PP) and 30 to 49 years (42 percent, +2 PP) in particular are keen to invest. Regardless of age, nine out of ten Austrians (92 percent, +5 PP) want to finance these investments through their own savings, according to the financial institution. The higher financing costs are also still noticeable, as the number of those who want to obtain the necessary funds through a bank loan or a building society loan has fallen to twelve percentage points (-4 PP). Eight percent do not pay themselves and four percent plan to borrow money privately.
When financing through a loan or credit, the average loan amount borrowed is around EUR 135,600, almost 13 percent higher than in the second quarter of 2024. An increase can be seen over the course of the year: after the average planned loan amount fell to EUR 101,800 in the third quarter of 2023, it has risen continuously since then, first to EUR 105,400 in the fourth quarter of 2023 and further to EUR 117,300 in the first quarter of 2024.
Table of Contents
Financial Literacy in Austria: A Comprehensive Overview
A recent survey has shed light on the financial literacy of Austrians, revealing that more than half of the population considers their financial education to be good. However, the survey also highlights the need for continued financial education initiatives, as the average loan amount borrowed has risen to over 135,000 euros.
The Importance of Financial Literacy
Financial literacy is a crucial aspect of personal finance, enabling individuals to make informed decisions about their financial resources. In Austria, the government has recognized the importance of financial literacy and has developed a national strategy to promote financial education among its citizens. According to the OECD, the national financial literacy strategy for Austria will guide the actions of Austrian stakeholders for the next five years [1].
Current State of Financial Literacy in Austria
The survey by Erste Bank reveals that 56% of Austrians rate their financial knowledge as “good” or “very good”, while a third (33%) rate themselves as mediocre. Men (61%) see themselves as better equipped in terms of financial education than women (52%). Gerda Holzinger-Burgstaller, CEO of Erste Bank Oesterreich, emphasized the importance of continued financial education initiatives, stating that “A well-founded approach to managing your own finances is the basis for a self-determined life.”
Investment Trends in Austria
The survey also shows that the savings account remains the most popular form of investment among Austrians, with 55% using it. However, the popularity of securities, such as stocks, funds, and bonds, has increased by three percentage points year-on-year, with 35% of Austrians investing in these assets. This trend is likely driven by the recent interest rate cuts, which have led to a shift towards alternative asset classes.
Green Financial Literacy in Austria
In addition to promoting financial literacy, Austria is also focusing on green financial literacy, which involves developing training content for environmentally and climate-relevant topics to support a future-proof financial system. This initiative aims to raise awareness about the importance of sustainable finance and promote environmentally responsible investment practices [3].
Conclusion
Financial literacy is a critical aspect of personal finance, and Austria has made significant progress in promoting financial education among its citizens. However, there is still a need for continued initiatives to improve financial literacy, particularly among women and younger age groups. By promoting green financial literacy and sustainable finance practices, Austria can support a more environmentally responsible and financially literate population.
Additional Resources
Experience Financial Literacy: This platform provides easy access to specific content and offers of the financial education sector in Austria to deepen your financial competencies [2].
National Financial Literacy Strategy: The Austrian government’s national strategy for financial literacy aims to promote financial education among its citizens and support a more financially literate population [1].
Financial Literacy in Austria: A Comprehensive Overview
In recent years, Austria has made significant strides in promoting financial literacy among its citizens. With over half of the population considering themselves financially literate, the country has implemented various initiatives to enhance financial education and promote responsible financial planning. In this article, we will delve into the current state of financial literacy in Austria, exploring the latest trends, statistics, and strategies employed to improve financial competence.
National Financial Literacy Strategy
Austria’s National Financial Literacy Strategy, launched in 2021, aims to guide the actions of Austrian stakeholders for the next five years[[[3]]. This comprehensive strategy focuses on improving financial literacy among various demographics, including children, young adults, and seniors. The initiative also seeks to promote financial education in schools and provide accessible financial resources to the public.
Current Trends and Statistics
A recent survey by Erste Bank revealed that 56% of Austrians rate their financial knowledge as “good” or “very good”[[[1]]. Men (61%) are more confident in their financial literacy than women (52%). While these figures are encouraging, there is still room for improvement, with 33% of respondents considering themselves mediocre in financial literacy.
The survey also highlights the popularity of savings accounts, with 55% of Austrians using them as their primary investment vehicle. However, with interest rates cuts, alternative asset classes such as securities (35%) are gaining traction[[[2]].
Trends in Financing and Investment
The survey indicates a shift towards higher financing volumes, with 35% of Austrians planning a major purchase in the second quarter, such as buying a new car or investing in their own home. The average loan amount borrowed has risen to over €135,000, a 13% increase from the previous year.
Improving Financial Literacy
To address the need for improved financial literacy, various initiatives have been launched in Austria. For instance, the National Financial Literacy Strategy provides resources and guides for individuals to enhance their financial competencies[[[2]]. Additionally, financial institutions like Erste Bank are committed to promoting financial education and providing accessible financial resources to the public.
Conclusion
Austria has made significant progress in promoting financial literacy among its citizens. While there is still room for improvement, the initiatives implemented by the government and financial institutions are expected to yield positive results. By enhancing financial education and providing accessible resources, Austria is poised to become a leader in financial literacy.
References
[1] OECD. (2021). National Strategy for Financial Literacy in Austria. Retrieved from
[2] BMF. (n.d.). Experience Financial Literacy. Retrieved from
[3] BMF. (n.d.). National Financial Literacy Strategy. Retrieved from
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