Financial literacy levels in Germany are relatively high in international comparisons, but averages hide significant differences among various population groups. Higher levels of financial literacy levels could have positive consequences on individual financial well-being as well as on the resilience of the German economy as a whole.
This proposal for a National Financial Literacy Strategy for Germany suggests measures targeted at federal and state-level governments, other federal institutions, as well as private and not-for-profit stakeholders. German authorities are invited to identify the most appropriate governance structure for the Strategy, including a leading authority or mechanism to coordinate its implementation, giving due consideration to the responsibilities of the federal government and of the states.
The proposal identifies three main objectives based on the evidence presented in the report “Financial literacy in Germany: Supporting financial resilience and well-being” (OECD, 2024[1]). The objectives are accompanied by a comprehensive yet flexible set of measures which can be implemented by German authorities and stakeholders. The three main objectives are:
Increasing the financial well-being of adults and young people in Germany by supporting sound financial behaviours across five areas:
Saving for the long-term and retirement: only 52% of adults in the working-age population feel confident about their retirement plans and only around half hold occupational or private pensions.
Participating in capital markets: almost 90% of adults in Germany save actively, but only 18% hold investment products.
Managing budgets, preventing over-indebtedness and using credit responsibly: while there are many financial education programmes relating to credit, around 8% of the population is over-indebted.
Using digital financial services safely: only under half of adults in Germany feel comfortable using digital financial services, and 7% have been victims of financial fraud or scams.
Meeting sustainability preferences: half of adults believe it is more important to invest in companies that strive to minimise the negative impact on the environment rather than in companies that are making a profit. This preference is not reflected in holding of sustainable financial products, which are held by just 15% of adults.
Encouraging the design and implementation of evidence-based financial literacy initiatives:
Continuing to measure the financial literacy of adults using the methodology of the OECD International Network on Financial Education.
Improving the understanding of the gaps in students’ financial literacy, ideally through participation of German states in the next PISA Financial Literacy Assessment in 2029.
Supporting stakeholders in the use of evidence in the design of their initiatives and in conducting impact evaluations.
Supporting further coordination among financial literacy stakeholders and encouraging constructive dialogue between the federal and state levels, building on the exclusive competence of German states on education.
The Strategy should aim at increasing the financial well-being of all people living in Germany. It should also address the needs of groups with lower levels of financial literacy, resilience, and well-being, or those who might not have sufficient access to financial education. These are individuals with low levels of income and/or education, women, working adults (including employees, owners of micro small and medium-sized enterprises), young people, and elderly people.
Finally, the proposal suggests mechanisms to monitor the implementation of the Strategy and evaluate its impact. The suggested evaluation would cover the Strategy’s institutional coordination, the implementation of its measures, as well as changes in financial behaviours among the population.