Despite young people up to the age of 29 falling behind, Luxembourgers in general still have a solid financial literacy in comparison to other OECD countries, ranking fifth on the list.
Respondents were not interrogated about econometrics or risk management, but rather basic questions along the lines of: If you'd put 100 euros in the bank with an interest rate of 2%, how much money would you have after one year? Respondents between the ages of 18-29 only got 42 out of 100 points on that question.
The CSSF, the supervisory commission for the financial sector and other actors of the financial centre now want to tackle this deficiency early on in schools.
It were especially important for this generation, facing higher costs of living and interest rates, to have a comprehensive understanding of personal finances. Often embarking on their first job, many have the urge to spend and therefore land in debt.
See full International Survey of Adult Financial Literacy
Claude Marx, general director of the CSSF, says basic financial literacy should start early on, ideally with young people around the age of 10 or 11: "How do you earn money, how do you spend it, how to save it: These are all things that children of 10 or 11 years old should have the knowledge of," he says.
"They usually have good ideas about how to spend money, but less good ideas on how to save money. Plus there a lot of temptations at the age of 10 or 11. This year I also heard from children that age that one gets rich with cryptocurrencies."
Highlighting the concern of a lack of basic knowledge about risks, Marx points out: "You are typically lured by social media to buy various things. It's natural not to ask too many questions and give in. And only then do you realise what the problem might be."
The CSSF, alongside the foundation of the The Luxembourg Bankers' Association, have been visiting schools for years to share knowledge on the basics of personal finances, money management and sustainability in finance.
