In the light of changing demographics and the prolonged low-interest rate environment, long-term saving decisions by individuals become increasingly important. Saving optimally over one's life-cycle requires knowledge and competencies that many people have never acquired, yet everyone has to make these decisions for himself. Aside from basic financial knowledge, such as time value of money or the interplay between risk and return, life-cycle saving and investment decisions require additional concepts and considerations, such as human capital, decisions regarding housing (rent or buy), inflation and how to protect your wealth against it or the impact of certain risks (e.g. occupational disability) and how to protect against such risks, to name just a few important examples. The project "Understanding Saving in Europe (USAVE)" develops online courses, which allow participants from two different target groups to acquire the necessary knowledge and competencies in the field of life-cycle saving and investment. One course is targeted at the general public, and requires no specific prior knowledge. The other online course is targeted at students of finance, economics, or related disciplines at higher education institutions. Both courses can be taken free of charge, whenever participants have the time to do so, at the participants' own pace. Both courses will be supplemented by online software applications, which can be used to carry out calculations without the need to spend a lot of time on understanding the formulas in the background (course 1, targeted at the general public), or the need to spend a lot of time on coding (course 2, targeted at students). The main goals of both courses are to improve the participants' understanding of long-term personal finance decisions and to equip them with the competencies that are necessary to set up and periodically revise/improve their own life-cycle financial planning. The second course (targeted at students) digs deeper and discusses also the theoretical underpinnings, methods, and formulas behind the concepts and online apps provided.
The primary goal of the project was to enhance the participants' comprehension of long-term personal finance decisions and provide them with the necessary tools and skills to establish and regularly review their own life-cycle financial planning. Additionally, we wanted to provide students of higher education with the necessary tools to delve deeper into the theoretical foundations, techniques, and formulas behind the concepts and online tools presented, further equipping them with the knowledge and competencies needed to make informed financial decisions.
In view of the shifting demographic landscape and the prolonged period of low interest rates, it is essential for individuals to make informed and strategic long-term saving decisions. Optimal saving throughout one's lifetime necessitates a certain level of knowledge and expertise that many individuals lack, yet these decisions are crucial for one's overall financial well-being. In addition to a basic understanding of financial concepts, such as the time value of money and the relationship between risk and return, effective long-term saving and investment decisions also require a grasp of key considerations, such as human capital, housing options, inflation, and the protection of wealth against various risks, among others. Given the reported low financial literacy levels among many European populations, there is a clear need for education and awareness-raising initiatives to equip individuals with the necessary understanding and skills to make informed decisions that have far-reaching consequences for their financial futures.