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

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 wealth building 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.