Whether it's compound interest, ETFs, or the risk-return relationship, our everyday lives are full of financial decisions. But how well does the general public really understand the mechanisms behind financial investments? The True Wealth Financial Literacy Index 2025 provides answers: it shows where knowledge exists, where gaps exist, and which factors such as education, income, age, or language region shape financial literacy. The results reveal clear differences, surprising correlations, and a clear mandate: financial education is not a nice-to-have, but a key skill for the future.
Do gender and age play a role?
Is financial literacy a male domain?
The results of the current survey once again confirm significant gender-specific differences in financial knowledge. On average, male participants answered around 63% (or 6.2 out of 10 questions) correctly, while the corresponding figure for female participants was just under 46%. Men performed better than women on all ten questions.
Another striking finding is the significantly higher number of «I don’t know» answers among women – a pattern that was already observed in last year's survey and is also supported by international studies. Researchers attribute this behavior in part to women's lower self-confidence in their financial abilities. According to estimates, about one-third of gender-specific differences in financial literacy can be attributed to lower self-confidence.
Share of correct answers by gender
Do people become more competent in financial matters with age?
The overall evaluation does not reveal any significant correlation between the age of the respondents and their level of financial literacy. Across all age groups, the average percentage of questions answered correctly is around 54%.
However, age-related differences are apparent in individual questions. For example, older participants scored better on questions about the relationship between risk and expected return. Conversely, younger respondents scored better on the question about herd behavior – that is, the influence of media attention on investment decisions. These findings could indicate that age-related experiences and media habits selectively influence the understanding of specific financial concepts.
Share of correct answers by age group
Share of correct answers by gender
Influence of education and income
Does a higher income strengthen financial literacy – or vice versa?
The analysis shows a clear correlation between gross monthly income and financial literacy: the higher the income, the more questions were answered correctly on average. People with an income of over 15'000 Swiss francs achieved an average accuracy rate of just under 69%, while participants with an income of less than 4'500 Swiss francs were only able to answer around 41% of the questions correctly.
These results raise a fundamental question: does higher income lead to greater financial literacy – or is it the other way around? Empirical research, in particular the much-cited study by Annamaria Lusardi and Olivia S. Mitchell (2014) entitled «The Economic Importance of Financial Literacy: Theory and Evidence», provides a nuanced answer. Their analyses show that financial literacy not only correlates with higher income, but is also a causal driver of economic success. People with sound financial knowledge make more informed decisions, which leads to more stable incomes and greater wealth accumulation in the long term.
The reciprocal relationship between income and financial literacy makes it clear that financial education cannot be left to chance. Targeted educational initiatives can have a significant impact, especially for people with little formal education or low incomes. Financial education should be an integral part of public education policy, as it contributes to greater economic resilience and social mobility in the long term.
Share of correct answers by household income
What role does the school system play?
The analysis reveals striking differences in financial literacy depending on the level of education. On average, people with lower levels of education answered only 37.5% of the questions correctly, while the proportion among respondents with higher education was 64.8%.
It is also striking that participants with lower levels of education responded «I don’t know» significantly more often – a possible indication that educational differences manifest themselves not only in concrete knowledge, but also in the degree of uncertainty and confidence in one's own financial abilities.
Share of correct answers by education level
Share of correct answers by household income
Does the Röstigraben still exist?
Regional differences in financial literacy
Regional differences in financial literacy remain. In German-speaking Switzerland, respondents answered an average of 56.8% of the questions correctly, while in French-speaking Switzerland the figure was 47%.
Although both regions were almost equal in terms of basic concepts such as compound interest, significant differences emerged when it came to more complex questions of understanding. For example, 72.7% of respondents in German-speaking Switzerland knew that an investment with higher expected returns is usually also associated with higher risk. In French-speaking Switzerland, however, only 56.2% of participants were able to correctly classify the relationship between risk and return.
Understanding of exchange-traded funds (ETFs) is significantly less widespread in French-speaking Switzerland than in German-speaking Switzerland. Only 18.6% of respondents from French-speaking Switzerland were able to correctly name the key advantages of ETFs (they generally have lower fees and costs). It is noteworthy that more than half of the participants in French-speaking Switzerland answered «I don’t know» to this question – an indication of a knowledge gap in the area of passive investment.
In German-speaking Switzerland, on the other hand, the level of knowledge was significantly higher: around one-third of respondents were able to correctly identify the advantages of ETFs. This difference is likely to be related, among other things, to the different investment preferences in the two language regions. Our ETF Study 2025 shows that people in German-speaking Switzerland invest in ETFs significantly more often than their counterparts in French-speaking Switzerland. This finding could indicate better knowledge of the investment instrument and different information channels.
Share of correct answers by language region
Share of correct answers by language region
Outlook
The Swiss population's general financial literacy in 2025 is at an intermediate level of 5.43 points. This score means that respondents were able to answer 54% of the questions correctly.
Admittedly, not everyone needs to be passionate about finance and investment topics. However, those who are unfamiliar with the basic principles of managing money will not be able to make good decisions in the long term – and thus will not be able to take responsibility for their own financial future.
The second edition of the True Wealth Financial Literacy Index now provides a tool that not only measures the current level of knowledge, but also creates a basis for long-term observations. Future surveys will show how financial literacy is developing in Switzerland. The results of the first survey from 2024 can be found here.
Appendix
About the report
The True Wealth Financial Literacy Index measures the financial and investment knowledge of the Swiss population and allows a more detailed analysis according to socio-demographic characteristics.
Dr. Michael Jan Kendzia
Michael J. Kendzia is currently the Program Director for the Bachelor in International Management at ZHAW School of Management and Law. He studied economics and business administration at University of Cologne and Warsaw School of Economics and received his Ph.D. from the University of Cologne in 2010.
GfK Switzerland
GfK Switzerland AG (IHA-GfK AG until December 2008), based in Rotkreuz, is the largest market research institute in Switzerland. Since 1999, it has been part of the German GfK Group in Nuremberg, one of the five largest market research organizations in the world.
True Wealth
True Wealth was founded in 2013 by Oliver Herren, co-founder of Digitec Galaxus AG, and Felix Niederer, physicist and portfolio manager. The online platform has consistently automated all processes of modern asset management and offers its customers domiciled in Switzerland a cost-effective asset management solution. The company manages client assets of more than 2 billion Swiss francs, spread across more than 35'000 client relationships.
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