Nine in ten Europeans see financial health as crucial, and nearly eight in ten want to improve their financial education, according to EFPA’s ‘Financial Health of EU Citizens’ study. Surveying 14,318 people across 12 countries, the report explores household budgeting, savings, investments, retirement planning, and the role of financial advisers.
X-ray of financial health in Europe
According to the European map of perceived financial health drawn up by EFPA, with an average score of 4.3 points out of 7, the study reflects differences between countries. Poland (4.6), the United Kingdom (4.5) and Germany (4.4) are at the top of the list, while Slovakia (4.3), Sweden (4.2), Spain (4.2) and France (4.2) are in the middle. At the opposite end of the scale, Italy (4.1) and Hungary (3.9) reflect greater vulnerability.
The need to improve financial education is a common theme among Europeans. 74% say they want to expand their financial knowledge. In fact, in practice, the study reveals significant gaps in personal financial management, as only 11% of respondents say they know their income precisely and only 9% keep detailed records of their expenses.
What Europeans invest in
Europeans maintain a marked preference for low-risk positions, which limits the profitability of their assets and delays long-term planning. More than half (51%) keep their savings in cash or current accounts, with only 36% saving regularly. Although 78% do manage to do so occasionally, there are notable differences between countries: for example, the Czech Republic has an occasional savings rate of 86%, compared to 65% in Hungary, which is the lowest level among all countries on the continent.
With regard to investment products, the most common are funds, shares and ETFs (22%), followed by crypto-assets (10%). Investment in real estate stands at just 6% across Europe as a whole.
The role of independent advice
On average, 58% of Europeans still use banks, insurance companies and networks of advisors who charge commissions. This model is particularly popular in Italy (68%) and France (69%), while it is less widespread in Hungary (44%) and the Czech Republic (47%).
In contrast, 21% of Europeans opt for advisors who combine commissions and fees, while fee-only advisors are used by 17% of respondents, reflecting their strong growth potential and the need for their role to be reinforced in European regulations. 18% use digital platforms.
The Czech Republic leads the way in the use of independent advisors (34%), compared to 3% in Germany. In contrast, Germany stands out for its use of online platforms (31%), well above France (8%) and Italy (10%).
Emanuele Carluccio, EFPA Chairman, points out: “This report clearly shows that financial health is not just a question of income, but of habits, planning and access to quality advice. The disparity between countries shows that when citizens have more educational tools and a solid planning framework, the results improve significantly. Our commitment, at EFPA, is to continue promoting a stronger and more accessible financial culture across Europe, because having the right knowledge and guidance not only improves money management, but also brings peace of mind, confidence and long-term well-being.”
Eddie Grant, EFPA UK Chair, EFPA Europe & PFS Board Director, notes: “The EFPA Financial Health insightful research enhances our relative understanding across Europe. From a UK perspective it is reassuring that the UK consumers believe financial health is important (8.13 / 10) and rate their financial health at 4.51 /7 just below the highest Poland at 4.61/7.
An area of concern is the significant over estimation of net income and underestimation of expenses in the UK which highlights a need for our focus on financial education and budgeting especially amongst younger ages.”
