Despite persistently high inflation, many Austrians are conservative in their savings behavior. According to a survey by Marketmind, three-quarters of all respondents rely on traditional investment options such as savings accounts. About a quarter (23 percent) uses money.
Shares are only used by 17 percent of the 1,044 respondents. “The reasons for the low use of the capital market are the fear of losing money and value, the uncertain economic situation and the lack of financial knowledge,” Gerald Resch, secretary general of the Banking Association, said on Friday.
More than one in three respondents (35 percent) does not realize that high inflation makes their savings less valuable despite the interest. At the same time, however, seven in ten respondents are very concerned that their savings will become less valuable due to inflation.
Terms unclear
Overall, the research shows that financial literacy in Austria has room for improvement. Just over a fifth are familiar with the compound interest effect, and 29 percent of respondents can correctly explain the difference between shares and equity funds. Only eight percent remember what the term ETF (Exchange Traded Funds/exchange-oriented fund) means.
However, when it comes to savings products, more than one in two people (53 percent) say they feel well informed; when it comes to effects, this figure is considerably lower (17 percent). Another finding is that the clear majority (80 percent) of survey participants would like to invest significantly more money or save in general. Many (42 percent) would like more advice and help.
This must come from banking advisors or independent financial coaches. Significantly fewer people trust information from friends and acquaintances.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
