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

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Listed:
  • Jannik Schumann

    (University of Finance and Administration)

Abstract

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.

Suggested Citation

  • Jannik Schumann, 2025. "Financial Impact of Inflation on Young Adults' Household Assets between 2015–2023 in Germany," ACTA VSFS, University of Finance and Administration, vol. 19(1), pages 7-17.
    • Handle: RePEc:prf:journl:v:19:y:2025:i:1:p:7-17
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    References listed on IDEAS

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    1. N. Gregory Mankiw & Ricardo Reis, 2002. "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1295-1328.
    2. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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