Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany

Background: Between 2015 and 2023, young adults in Germany faced significant financial challenges due to escalating inflation, peaking at 10.6% between 2021 and 2023. Aim: This study aims to investigate the financial impacts of inflation on the household assets of young adults in Germany compared...

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Main Author: Schumann, Jannik
Format: Article
Language:English
Published: University of Finance and Administration 2025-06-01
Series:ACTA VŠFS
Subjects:
Online Access:https://acta.vsfs.eu/pdf/acta-2025-1-01.pdf
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author Schumann, Jannik
author_facet Schumann, Jannik
author_sort Schumann, Jannik
collection DOAJ
description Background: Between 2015 and 2023, young adults in Germany faced significant financial challenges due to escalating inflation, peaking at 10.6% between 2021 and 2023. Aim: This study aims to investigate the financial impacts of inflation on the household assets of young adults in Germany compared to other age groups. Methods: Employing a structured literature review of studies, reports, and statistical data from institutions like the European Central Bank and the Deutsche Bundesbank. Results: The findings reveal that high inflation eroded net asset returns for young households, delayed wealth accumulation, and exacerbated generational wealth disparities. Recommendations: The study recommends targeted policy actions to enhance financial resilience among young adults, such as financial education and support for wealthbuilding initiatives. Practical Relevance/Social Implications: Addressing the unique financial vulnerabilities of young adults during inflationary periods is essential for reducing wealth inequality and promoting economic stability. Originality/Value: This research contributes originality by focusing on an underexplored demographic, shedding light on how recent inflation has specifically impacted the wealth development of young German households.
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spelling doaj-art-498009b70f424bb39dc977ef8f94ec562025-08-20T03:31:30ZengUniversity of Finance and AdministrationACTA VŠFS1802-79462025-06-0119171710.37355/acta-2025/1-01Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in GermanySchumann, Jannik0University of Finance and AdministrationBackground: Between 2015 and 2023, young adults in Germany faced significant financial challenges due to escalating inflation, peaking at 10.6% between 2021 and 2023. Aim: This study aims to investigate the financial impacts of inflation on the household assets of young adults in Germany compared to other age groups. Methods: Employing a structured literature review of studies, reports, and statistical data from institutions like the European Central Bank and the Deutsche Bundesbank. Results: The findings reveal that high inflation eroded net asset returns for young households, delayed wealth accumulation, and exacerbated generational wealth disparities. Recommendations: The study recommends targeted policy actions to enhance financial resilience among young adults, such as financial education and support for wealthbuilding initiatives. Practical Relevance/Social Implications: Addressing the unique financial vulnerabilities of young adults during inflationary periods is essential for reducing wealth inequality and promoting economic stability. Originality/Value: This research contributes originality by focusing on an underexplored demographic, shedding light on how recent inflation has specifically impacted the wealth development of young German households. https://acta.vsfs.eu/pdf/acta-2025-1-01.pdfinflationyoung adultshousehold assetsgermanywealth accumulation
spellingShingle Schumann, Jannik
Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany
ACTA VŠFS
inflation
young adults
household assets
germany
wealth accumulation
title Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany
title_full Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany
title_fullStr Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany
title_full_unstemmed Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany
title_short Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany
title_sort financial impact of inflation on young adults household assets between 2015 2023 in germany
topic inflation
young adults
household assets
germany
wealth accumulation
url https://acta.vsfs.eu/pdf/acta-2025-1-01.pdf
work_keys_str_mv AT schumannjannik financialimpactofinflationonyoungadultshouseholdassetsbetween20152023ingermany