A recent (non representative) street survey in Switzerland by a Swiss media group showed that kids expect to earn CHF 20’000 (that’s nearly $24‘000) or more a month in a country where the average monthly salary stands at roughly CHF 7‘000. Clearly there is a wide gap between expectations and what these young adults ultimately will be earning. And this is not for lack of education or training: Switzerland ranks high internationally for educational attainment, with one of the highest proportions of young adults completing tertiary education.
About 47–50% of Swiss young adults complete upper secondary education, often through vocational education and training, which is a hallmark of the Swiss system and combines classroom learning with practical apprenticeships in fields such as business, healthcare, and engineering. A further 40-45% holds higher tertiary certification (i.e. Bachelor‘s or Master‘s degrees or higher vocational certificates or diplomas).
So why this discrepancy as far as expectations and actual outcomes are concerned? One reason certainly is that in Switzerland like everywhere else young people dream of making a quick buck on social media as content creators and influencers (see my previous post of 30 November). And some actually are: Alisha Lehmann, a footballer with the Swiss national women’s football team has 13.5 million Instagram followers and is among Switzerland’s top influencers. While her exact earnings aren’t disclosed, content creators with similar followings can charge upwards of $10‘000 per post for partnerships. Or take Loredana Zefi, a Swiss-Albanian rapper with 3.1 million followers who also ranks high in popularity and earnings, with potential incomes in the range of $5‘000–$10‘000 per sponsored post (true to the gangster image of rappers, Loredana was involved in a high-profile fraud case in 2019 which was settled out of court after she reimbursed the victim the following year).
Furthermore, Switzerland is known for its high wages and excellent quality of life. Young people are exposed to stories of high salaries in banking, tech, and consulting, creating inflated expectations about entry-level earnings. In addition Swiss families often provide significant financial support to their children during their studies. This, combined with a lack of accounting for expenses like rent, taxes, and insurance, can delay young people’s financial independence and give them unrealistic benchmarks for what they need to earn to sustain their lifestyle.
Linked to this is the easy availability of credit, be that through credit cards and Buy Now, Pay Later (BNPL) plans: no need to save up for that fancy outfit and the trendy sneakers if you can pay them off in instalments over a number of months. And the cash the payment plan seemingly frees up can fund evenings out with your friends (obviously wearing the newly acquired clothes).
Parents also – and not only in Switzerland – have the tendency of overvaluing their offspring’s abilities because not everyone is born to be a surgeon or high flying CEO: This world also needs lorry drivers (starting salary CHF 4‘000, rising to CHF 7‘000 in Switzerland for experienced drivers) and cashiers (salary of approximately CHF 4‘200 for a 40-hour workweek). And if everyone was a top level executive, who would actually do all the work that makes the bosses look good?
Our kids have the tendency of being influenced by the apparent easy life by social media celebrities, distorting their view of what is reasonably achievable, expecting to earn a maximum of money with a minimum of effort. Only a very small fraction of people end up minting it without hard graft (even CEOs and surgeons have to put in punishingly long hours). At the same time parents and schools clearly don’t do enough to teach about money and finances in general, providing guidance and managing expectations.
Work-life balance matters apparently a lot to our offspring, and so it should, since at least some of us older folks regret the extra time spent at work rather than with family and friends. A big pay-check at the end of the day doesn’t make up for the time you didn’t spend with your nearest and dearest. A friend of mine who retired a few years ago admitted (and his wife confirmed) that during the best part of their marriage he had no family life whatsoever, working even regularly on weekends. When he then had to retire it hit him hard, not having any hobbies and reconnecting with his wife and sons who in the meantime had become young adults themselves (it all worked out well in the end). But the emphasis here has to be on ‚balance‘: You can‘t have your cake and eat it too!
So our children need to be given the appropriate information and guidance to help them make an educated decision where to put their priorities early on in life. There is no such thing as a free lunch and in most situations our kids will have to choose between a relaxing or a financially comfortable life. When I look at my own son (who is currently studying to become a lawyer) and his priorities, I realise that even I still have some work to do in this respect..
The grumpy older man 