The respondents have the best understanding of budgeting in everyday life, where 82 per cent feel rather well informed. In contrast, there are considerable gaps when it comes to dealing with debt and taxes: 38 per cent feel poorly informed about debt and 37 per cent about taxes. The biggest gaps in knowledge exist in terms of investing money.
Urgent need for improvements in financial education
These results emphasise the urgent need to improve financial education in schools. The respondents are of the opinion that university studies or specific training are the best ways to acquire financial knowledge.
Debt reduction through savings and support
Another result of the study shows that every third person surveyed has already been forced to take measures to reduce debt. Saving and support from family and friends are the most common means of reducing debt. Just over a quarter have also taken on a job or worked more, but only 4 per cent have taken advantage of professional debt counselling.
Causes of debt
The main causes of debt are excessive consumption of (luxury) goods (84 per cent), lack of financial education (68 per cent) and lack of cost control (66 per cent). Social media also has an influence on the financial education of young Austrians (63 per cent). The pressure to follow the latest lifestyle trends often leads to ill-considered and impulsive purchasing decisions.
Preference for means of payment and expenditure control
When it comes to controlling expenditures, half of those surveyed prefer cash as a means of payment, followed by the ATM card. Payment services are also very popular and are used frequently by a third of respondents. 23 per cent check their account balance daily, 44 per cent several times a week. Interestingly, younger respondents plan their spending more precisely than older respondents: one fifth of under 20-year-olds plan weekly, while only 13 per cent of over 21-year-olds do so.
Financial worries and sleep problems
Just under 70 per cent of respondents have never had problems sleeping due to financial worries. However, 28 per cent report that they sleep badly at least occasionally due to financial worries. Women in particular are more frequently affected by occasional sleep problems than men.
The study emphasises the importance of a sound financial education and the urgent need for action to help young people in Austria to manage their finances better and live more financially secure lives. The survey was conducted as part of a course led by Cordula Cerha on the Business Administration degree programme.
