Germany in the asset poker: Who is left behind?

Germany in the asset poker: Who is left behind?

Deutschland - The fortune of the Germans remains a hot topic. According to a recent report by Manager-Magazin for wealth growth towards other countries. The latest UBS study found that the Germans fall back in international comparison, although there have been certain upward trends in recent years.

Wealth development in Germany shows a mixed picture. Compared to other European countries, the assets grow more slowly in this country. This could affect the economic level of prosperity of the population and asks the question of what is about the financial education and the willingness to invest in Germans.

asset mobility in detail

Another aspect that should not be neglected is the wealth mobility. Like the Bundesbank explains, this is an essential indicator of the financial situation of households. It shows how families are in wealth distribution over the years.

The data suggest that the changes in assets depend heavily on educational and income decisions, professional activities and the composition of households. In order to analyze the financial conditions over a longer period of time, households whose reference person was between 20 and 69 years old were divided into ten-year cohorts.

distribution of assets

The probabilities for households are particularly revealing to stay in their asset quintil. In astonishingly, the majority of households in the middle of the wealth distribution remains stable, while only a few from the lowest 40% make the leap into the top 20%. For people in the group of 20-29-year-olds, the highest mobility is evident, which, however, decreases with age.

• The likelihood of staying in the same quintile exceeds 50% for the top and bottom quintil.
• mobility mainly takes place in the middle of the distribution, whereby switching to neighboring quintile is significantly more common than larger jumps.

technology as an aid

An interesting approach to improving financial education could be the use of new technologies. For example, an app like Manager+ could help raise awareness of personal finances. It supports users in organizing their data and offers a variety of functions for the management of memory and documents.

In a time when digital solutions are becoming increasingly important, the use of such applications could significantly improve the financial situation of households. This is particularly important, since the wealth situation of the Germans is decisive not only for individual protection, but also for the entire economic growth.