Financial literacy in Germany

Abstract

Over the past few years financial literacy has gained increasing public attention in Germany. Because of the various political approaches regarding education in Germany's 16 federal states, the regulatory conditions are complex and confusing. Schools are insufficiently supplied with classroom materials and lack professionally educated teachers for economics. Several empirical studies of varying quality suggest that the degree of financial literacy in Germany is rather low. Yet still missing is a widely recognized measuring instrument for diagnostic use at schools. Even large-scale assessments like the OECD PISA-study do not fit the bill. The integration of financial literacy into the framework of traditional German education aims is difficult. There is much debate by experts of economics and financial education didactics about the direction of financial education in German schools. It is becoming apparent that financial literacy focuses too much on personal finance and consumer protection issues. But true "financial Bildung" should also incorporate the supply-side perspective and a broader regulatory understanding. The reasons for this mismatch are diverse and indicate the need for further arguments and developments in German schools, politics, research and society.