„We see that residents’ interest in investing is steadily growing, and the number of investors is constantly increasing. However, many who want to start are held back by a lack of knowledge and confidence in their abilities. Investing is often perceived as a complicated process requiring large sums, although it is possible to start with small amounts and gradually accumulate experience. Therefore, we believe that these two platforms, freely accessible to all residents of Lithuania, will encourage taking a step towards stronger financial health,“ says Vytenis Šimkus, Swedbank investment strategist.
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Investment Academy is a digital learning platform where the basic principles of investing are explained simply and clearly. The Investment Game offers the opportunity to try investing practically without risking real money. In this simulation, users can observe market changes, form a virtual investment portfolio, and make investment decisions under real market conditions but without real risk.
Barriers to investing
Although interest in investing in Lithuania is growing, the main barrier to investing is a lack of knowledge – as many as 70% of residents believe they do not have enough knowledge. According to V. Šimkus, these trends are also confirmed by financial literacy data. The Financial Health Index, measured annually by Swedbank, shows that a standardized financial literacy question about investing causes the most difficulties for residents.
„Less than one-fifth of residents correctly answer the question about investing, which asks how changes in interest rates affect bond prices. This shows that a large part of people still lack understanding of the basic principles of investing and how different investment instruments work. When investing seems unclear, it is natural that people tend to postpone their first decisions,“ says the Swedbank investment strategist.
More than half (54%) of residents say they are interested in investing but do not dare to delve into the topic or simply start investing. According to the expert, it is precisely the lack of basic knowledge and understanding of investment processes that contributes to the impression that investing requires a lot of time and specific knowledge, so the decision is postponed.
Swedbank data shows that currently only just over 15% of clients invest regularly, but the trends are positive: over five years, this number has increased almost eightfold. The average amount allocated monthly by a regular investor is 138 euros.
According to Swedbank data, by the end of April, the number of investing clients exceeded 143 thousand. Over the past two years, since the bank introduced new tools for more convenient investing, this number has more than doubled.
Myths disproved by practice
According to V. Šimkus, investing is still surrounded by many myths that often discourage people even before making the first decision to start. One of the most common beliefs is that you can only invest if you have a high income or have accumulated a large initial capital.
Swedbank research shows that almost half of residents could allocate up to 100 euros per month for investing, and a quarter up to 50 euros. According to V. Šimkus, these are completely sufficient amounts, especially when invested regularly. It is precisely from the basic principles – regular investing, risk diversification, and long-term returns – that the content of the Investment Academy begins, leading to more complex topics and investment instruments.
Another common myth is that investing is close to gambling or requires constantly monitoring the markets and making complex decisions. According to the expert, long-term investing is usually based not on guesses or quick profits but on consistency, risk diversification, and clearly understood principles. Residents can practically try these principles in the Investment Game with challenges and prizes, where participants form a virtual investment portfolio, observe market changes, and see how different decisions affect the longer term.
Also, a significant number of people think that investing is only for financial experts. However, practice shows that it is possible to start investing gradually, consistently deepening knowledge and gaining experience.
„It is precisely practical experience that often helps reduce the fear of making mistakes the fastest. When a person can safely get acquainted with the principles of investing, observe market behavior, and make first decisions without risking real money, investing becomes much better understood and less intimidating,“ says the Swedbank investment strategist.
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