In Switzerland, financial literacy varies significantly by education, income, and region, reflecting notable socio-economic and cultural disparities in how individuals understand, manage, and plan their finances, according to a new study by Swiss online wealth management firm True Wealth, in collaboration with Dr. Michael Kendzia from the ZHAW School of Management and Law.

The study, which polled more than 2,000 adults in German- and French-speaking areas of Switzerland in June 2025, found that high earners are scoring substantially higher than those with lower incomes. In particular, respondents with a gross monthly income above CHF 12,000 answered roughly 70% of questions correctly, compared to around 40% for households earning less than CHF 4,000. For reference, Switzerland’s gross monthly median wage stood at CHF 6,788 in 2022, according to the Federal Statistical Office (FSO).

This shows that financial literacy not only correlates with higher income, but also contributes to economic success. People with strong financial knowledge make more informed decisions, which leads to more stable incomes and greater wealth accumulation in the long term.

Education is another critical factor, with striking differences based on educational attainment. Respondents with a higher level of education answered an average of 6.5 out of 10 questions correctly, while those with lower education averaged 3.7. Participants with lower educational levels also responded “I don’t know” significantly more often, suggesting that educational differences manifest not only in concrete knowledge, but also in the degree of confidence in their own financial abilities.

These findings suggest that targeted educational initiatives could have a substantial impact, especially for people with limited formal education. Financial education contributes to greater economic resilience and social mobility in the long term, and should be an integral part of public education policy.

Financial literacy higher in German-speaking Switzerland

The study also found significant regional differences, with German-speaking Switzerland outperforming French-speaking Switzerland. In particular, German-speaking respondents answered an average of 56.8% of the questions correctly, compared to 47% in French-speaking regions.

The gap is most pronounced on complex topics. 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, against only 56.2% in French-speaking Switzerland.

Understanding of exchange-traded funds (ETFs) also varies. Only 18.6% of respondents from French-speaking Switzerland were able to correctly name the key advantages of ETFs, namely lower fees and costs, and more than half of French-speaking Swiss answered “I don’t know” to this question, underscoring a knowledge gap in the area of passive investment.

Avid investors

These findings align with investment behaviors in Switzerland. People in German-speaking regions tend to invest more in public investments, including equities, ETFs, actively managed funds, and structured products, according to another 2025 survey by True Wealth. In French-speaking Switzerland, investments are more concentrated in private and real assets, such as real estate, private equity, and venture capital.

Age also influences investment preferences. Younger generations are more likely to invest in cryptocurrencies, with 27% of respondents aged 30-49 and 24% of those aged 16-29 reporting investing in digital assets, compared with only 10% of respondents aged 50-74.

Overall, financial literacy is increasing in Switzerland, with the True Wealth Financial Literacy Index for 2025 standing at 5.43 out of 10, marking a slight increase from 5.17 last year.

Regarding investment, Swiss residents are generally active investors. Two-thirds participate in financial markets, with stocks (50%) and ETFs (30%) being the most popular investment instruments.

Compared with other nations, Switzerland has a relatively larger and more active equity market. According to the Observatoire de l’Épargne Européenne (OEE), a French non-profit organization that studies household savings behavior in Europe, and the Association Française de la Gestion Financière (AFG), the country has one of the highest stock market capitalization-to-GDP ratios in the world at 224%. By comparison, that ratio stands at 158% in the US and 100% in the UK. At the lower end, Italy’s ratio is 36%, Germany’s 46%, and Spain’s 47%.

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