Scarves,” says Christian Schumacher, “are my most important tool.” Because tears flow regularly in the debt advisor’s office. He imagines all sectors of society: “There is no typical debtor,” he says. “Normal people come to us – some are sick, others are unemployed.” What unites them: They have difficulty talking about financial concerns. “No one should know about this – not neighbors or friends.” Schumacher talks about a family who would have spent their holidays in the basement out of embarrassment. “An urban myth, yes, of course, but it says a lot.”
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Debt advisor: Christian Schumacher © Katrina Fischer
Luxembourg is doing well, but…
The reputation of money precedes the small state of the Moselle. The economically strong archduchy is considered a European financial stronghold. Luxembourg is by no means immune to the mix of European crises. When it comes to reports of celebrations, the statistical institute “Statec” is cautious. The pressure is growing – especially in the real estate market. Unemployment, which was almost a foreign concept in Luxembourg some 30 years ago, has also risen from 1.7% in 1990 to 4.80% last year. This year it is predicted to be around 5.08 percent. Furthermore, Luxembourg is the country with the highest gross national product per capita – but German cross-border passengers distort the result.
What young people want
Departure towards Kirchberg-Plateau – the financial district of Luxembourg City. Jessica Thyrion works where buildings made of concrete and glass connect world markets. She is a financial education consultant at an ABBL foundation, the Luxembourg Bankers Association. According to her, around 20 percent of people would have problems if an unexpected expense came up tomorrow: “Just a new washing machine – that’s not there.” Thyrion is therefore pushing for measures – numbers from a study commissioned by her foundation give her that right, she thinks. According to this, around 88 percent of young people in this country would like to have financial education on their calendar. By the way: also in Austria people need to learn how to deal with money. A list of student requests, developed by the social enterprise YEP, was handed over to Education Minister Martin Polaschek (ÖVP) at the beginning of October. The call for more financial education came to the top of young people’s list of targets.
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Jessica Thyrion from ABBL © Katrina Fischer
In Luxembourg, education experts such as primary teacher Sophie Nilles are not averse to such ideas. As a rule, children learn to handle money safely at home, but schools do not adequately fulfill this task, she says. A delicate issue: It is clear that the task of solving all of society’s weaknesses should not just be transferred to the education system: “But schools can be a supporting factor.” As long as the resources are adequate. Whether financial education reaches schools depends on each person’s ambition. “Which is a shame,” she says. “The way we deal with money, in particular, should be anchored, like world religions or the four seasons.”
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Primary teacher Sophie Nilles © Katrina Fischer
“Lots of room for bad decisions”
Economics professor Christos Koulovatianos, from the University of Luxembourg, knows the most radical effects of a lack of financial education – both for individuals and for society. Poor money literacy can cost the average family many euros a year, he says. Furthermore, the world has become more complicated. Cell phones, Internet, globalization: “There is now a lot of room for bad decisions. “But it’s also important: “Financial education helps society make better political decisions.” Because, according to Christos Koulovatianos, in the worst case scenario, ignorance combined with ignorance attracts politicians and parties that promise simple solutions. “Promises they can never keep.”
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University professor Christos Koulovatianos © Katrina Fischer
Mathematics, German, money?
Although financial education is not part of the curriculum in Luxembourg, there are several ABBL Foundation projects that follow a similar approach. “Woch vun de Suen” (German: Money Week), for example. An initiative that brings sector expertise to schools. But these campaigns must be well coordinated. Debt advisor Christian Schumacher knows many approaches. But he also knows that prevention projects, however ambitious they may be, do not always reach their target groups. “Even the best financial education website is useless if people don’t check it out.” The educated Luxembourger is lazy – metaphorically speaking. There would be a certain amount of wealth that would be passed down from generation to generation, but it would also be decreasing. Furthermore, there would be very little foresight.
A deficiency that at least the Austrian government now wants to resolve. The primary and lower secondary education curricula were adapted. The aim is to create interdisciplinary points of contact – for example, in thematic classes. But it is also a fact that finance has until now played a subordinate role in educational training – there is a lack of in-depth knowledge.
Calls for more financial education are likely to remain loud – with reference to various reports on debt. In any case, a sharp increase in the number of cases due to inflation has not yet been seen, says Christian Schumacher in Luxembourg. But the 2008 financial crisis taught him one thing: individual crises come late. “At that time, we only felt the need in 2010 and 2011.” Also because many people don’t realize they miscalculated: “So they try to tighten their belts – but they can’t get out of this alone. ”
Research within the scope of “eurotours”, a project of the Federal Press Agency, financed with federal resources.