by Overview
• Europeans are not taking full advantage of their purchasing power, leading to an estimated €1.2 trillion loss in potential wealth.
• Lack of financial literacy, distrust in the financial system, debt, and job insecurity are common reasons why Europeans aren’t investing more in stocks or bitcoin.
• It is essential for millennials to improve their financial literacy and start investing in order to build long-term wealth.
The Financial Consequences
It is estimated that the financial wealth of Europeans would be €1.2 trillion higher if savers had invested their money instead of keeping it in the bank. Despite high inflation, cash savings is still the most common way Europeans save their money, with only 17% reported owning Bitcoin and 15% investing in stocks (compared to 55% of Americans). This lack of investment could have serious consequences on European pocketbooks and financial security.
Reasons Behind The Trend
There are several factors that contribute to this trend:
• Lack of Trust: Many millennials have experienced first-hand how banks were not punished for causing the 2008 recession – leading to a general lack of trust towards Wall Street and traditional financial institutions.
• Debt: With soaring real estate prices in Europe, owning a home often comes with a 30-year mortgage which can make it difficult for young people to save and invest. Add other forms of debt such as car leases, credit cards or student loans into the mix and managing finances becomes even harder.
• Job Insecurity: Millennials have only ever known a challenging job market with scarce opportunities and stagnating salaries – making it difficult for them to plan for long-term investments when they need short-term solutions like paying off debt or covering rent/living costs .
• Financial Literacy: Many lack basic knowledge about investments or internet banking – hampering any attempts at personal finance management or investment planning.
Solutions For Smart Investing
In order for Europeans to take advantage of their purchasing power, there must be education around smart investment strategies as well as access to easy-to-use tools that promote better money management skills (such as Relai’s bitcoin-only investment app). Making sound decisions based on reliable data will help Europeans break free from traditional banking models which can no longer meet their needs due to high inflation rates and low interest rates on savings accounts — both contributing factors preventing them from building long term wealth through intelligent investments.
Conclusion
In conclusion, Europeans need better access to resources that will help them understand how they can use their purchasing power wisely by understanding investments better — whether it’s through stocks or cryptocurrencies like Bitcoin — so they can start building long term wealth for themselves and their families faster than ever before!
