Over a third of Finnish people are not investing, according to a survey by TNS gallup ordered by Norvestia. At the same time half of the people say that they keep their money in their bank accounts for no reason. Do you see the irony in here? Especially youth (ages 25-30) is not investing their money, according to the survey.
What are the reasons?
Most common reason is lack of money (67%). Second reason is unstable finance markets (35%) and the most alarming reason is the lack of interest towards investing which was the third most common reason (27%). My question here is why?
First let’s think about the most common obstacle between Finnish people and investing, the lack of money. Maybe this is the case, but I bet that most of the people who answered the survey have a little something on their bank accounts at the end of the month, so why not put that something to work instead of letting the money stay in the account with 0% interest when you could get some profit instead?
Yes, it is true that finance markets are unstable right now and it might be hard to figure out where to invest your money, but there are big companies with a good financial standing that are guaranteed to pay dividend to it’s shareholders so why not invest in them? Especially now that stock market and share prices have gone down.
Now the third and the most disturbing reason in my opinion, no interest towards investing. Of course it’s everyone’s own decision, but if you ask me there is no harm on putting your money to work and getting some profit and financial security. There are always risks in investing, but if you do it right you can minimize them.
The survey brought up other reasons why Finns don’t invest such as lack of trust towards the providers of investment services (26%), possibility of needing the money right away (23%), confusing options (17%) and Finns found it difficult (15%).
So what is the problem?
I think the biggest problem in Finland in this area is that we are not encouraged to do this. Among many other things in the first 9-12 years of your education you won’t hear the word investing or finance at school, why not? Because many people think that investing is too hard, too confusing and there are too many options. Why can’t there for example be optional classes regarding this subject available in school even if you are not studying business? More easily accessible information might lower the threshold to start investing and get people more excited about it, but hey that’s just my opinion.