Young People Increase Investments and Savings Amounts
Young adults are showing a growing interest in fund investments in Sweden and Denmark. They are saving more and more regularly, focusing on long-term investments to build a financial buffer.
The saving habits of young adults have undergone a significant shift in recent years. According to a new survey by the Swedish Investment Fund Association, 83 percent of Swedes aged 18-33 are now investing in funds, an increase from 75 percent in 2022. Fund saving is generally considered the best method for long-term savings.
In Denmark, the number of young investors has also increased. In 2021, the proportion of 18-29 year olds investing reached 23 percent, compared to just 14 percent in 2019. While young people are aware of investment risks, the need for information grows as investing becomes more popular.
According to the World Economic Forum, young people's financial literacy globally is below 50 percent, underscoring the importance of improving access to financial information and education. The growing trend of saving increases the pressure for information dissemination.
The Swedish survey revealed that 59 percent of young people now make regular monthly savings, which is higher than the Swedish average (50 percent). The monthly saving amount is also higher, often between SEK 2,000-5,000, which is significant for young people typically earning lower incomes.
Young people view investments as a means to grow their wealth and build future security. Changes in pension and safety net systems have increased the need to create a personal financial buffer.