True Wealth Financial Literacy Index 2025: Significant differences in knowledge based on education, income, and gender

Press Release

Zurich, September 29, 2025

The True Wealth Financial Literacy Index 2025 shows that even slightly more complex questions about money and investment reveal gaps in knowledge among the Swiss population. The differences between language regions, genders, and income groups are striking. The True Wealth Financial Literacy Index was compiled for the second time in collaboration with Dr. Michael Kendzia from the ZHAW School of Management and Law.

Compared to the previous year, the index value remains stable at 5.43 out of 10 points. This shows that the majority of respondents can answer simple financial questions. Over 70 percent answered questions on topics such as compound interest, inflation, and diversification correctly. This indicates a solid basic understanding.

However, when it comes to more complex topics – such as the influence of key interest rates on bond prices – there are clear gaps in knowledge. Only 21 percent knew how falling interest rates affect the price of existing bonds.

Higher financial literacy among high-income groups

There is a trend toward a further strengthening of the positive correlation between income and financial literacy. Respondents with a gross monthly income of over 12'000 Swiss francs significantly better results than those with lower incomes.

«Financial knowledge is stable, but not evenly distributed. The knowledge gap between income classes has widened further compared to last year,» summarizes Dr. Michael Kendzia.

While households with less than 4'500 Swiss francs answered only around 4 out of 10 questions correctly on average, the figure for top earners was 7 out of 10 – a striking difference.

Education as a key factor – especially when it comes to complex topics

The study reveals striking differences in financial literacy depending on the level of education. People with a higher level of education answered an average of 6.5 out of 10 questions correctly, while the figure for respondents with a lower level of education was 3.7.

It is also striking that participants with lower levels of education responded «I don't know» significantly more often. This may indicate 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.

«Financial literacy is a basic prerequisite for a stable economy and for our direct democracy. Those who understand interest rates, inflation, and risks save more, are less susceptible to crises, and participate more actively in referendums – thereby strengthening prosperity and the sustainability of reforms,» emphasizes Melanie Häner-Müller, Head of Social Policy and Education at the IWP.

Gender differences remain significant

The gender gap remains a key issue: Men achieved an average of 63 percent correct answers, women only 46 percent. Men performed better on all questions.

The high number of «I don't know» answers among women is also striking. This is a pattern that international research has linked to lower financial self-confidence. According to estimates, around one third of gender-specific differences in financial literacy can be attributed to lower self-confidence.

Regional differences in financial literacy

Although German-speaking and French-speaking Switzerland were almost on a par when it came to basic concepts such as compound interest, clear differences emerged in more complex comprehension questions.

Understanding of exchange-traded funds (ETFs) is also significantly less widespread in French-speaking Switzerland than in German-speaking Switzerland. Only 19 percent of respondents from French-speaking Switzerland were able to correctly name the key advantages of ETFs (generally lower fees and costs), compared to 32 percent in German-speaking Switzerland. It is noteworthy that more than half of the participants from French-speaking Switzerland answered this question with «I don't know.»

Younger people score higher on current topics – older people on long-term knowledge

The results show that financial knowledge is stable on average across all age groups. However, there are clear differences in individual subject areas: for example, understanding of the relationship between risk and return increases with age. Conversely, when it comes to herding – i.e., the bandwagon effect on the financial markets – knowledge declines in the older cohorts.

«Financial education is still very unevenly distributed,» comments Felix Niederer, CEO of True Wealth, on the second edition of the Financial Literacy Index. «However, an understanding of the most important financial relationships is a key prerequisite for economic self-responsibility and social participation. The results suggest that financial education needs to be taught in a simpler and more accessible way.»

Data from True Wealth also underscores that financial knowledge is not evenly distributed. «This is not just a matter of objective knowledge, but also of confidence in one's own abilities. Those who believe they know little may not invest at all – and thus risk falling behind in wealth accumulation in the long term,» explains Felix Niederer.

The representative survey was conducted by the market research institute GfK Switzerland on behalf of True Wealth in collaboration with the ZHAW School of Management and Law.

You can find out more about the True Wealth Financial Literacy Index and the complete study results here.

Accompanying the study is an interactive online quiz that allows interested parties to compare themselves with the Swiss average.

Methodology:

Representative survey (GfK eBUS®) conducted in June 2025, sample size 2'043 respondents aged 16 to 74, representative of the population of German-speaking and French-speaking Switzerland.

Ten questions with closed-ended answers were asked on the topics of interest rates, inflation, diversification, risk tolerance, risk/return ratio, herding effect, stocks, bonds, cash, and ETFs.

About 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 modern wealth management processes and offers customers domiciled in Switzerland a low-cost wealth management solution from an investment amount of CHF 8'500 or CHF 1'000 for children's portfolios and Pillar 3a investments.

The company manages client assets of more than 2 billion Swiss francs, spread over more than 35'000 clients.

The annual all-in wealth management fee is 0.25-0.50%, depending on the investment amount. The management fee for Pillar 3a is 0%.

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