Around 35% of youngsters aged 18 to 29 years do not make savings from their monthly income, according to a survey by SEB Bank.
The bank notes that the habit of creating savings is affected by multiple factors. Financial literacy plays a major role in all this.
Results show that the higher the education and income level, the bigger the savings youngsters create.
47% of youngsters with primary education, 59% of youngsters with secondary education, 62% of youngsters with average special education, as well as 76% of youngsters with higher education make private savings. A similar trend is observed in relation to monthly income. However, some youngsters are still slow when it comes to making savings.
“Nearly 84% of youngsters whose income exceeds EUR 1 200 after taxes divert money towards savings. At the same time, every third youngster with low income does not make any savings. This is concerning, because almost unemployed youngsters (36%) still try to make savings. Although the size of savings undoubtedly affected by aspects like education and income levels, every one of us should form this habit in accordance with their abilities,” says SEB Bank Private Banking Segment Office chief Elza Rudzīte.
Compiled data also indicates that in 56% of cases youngsters make savings for specific purposes.
Nearly half of respondents (43%) said they make savings to purchase a home and cover the first payment. 56% of interviewed men mentioned this as the reason for creating savings. 50% of interviewed women said they make savings for travel, which is the second most popular reason for making savings.
The third most popular reason is the purchase of a vehicles – 30% of youngsters make savings for this purpose.
Other popular answers include retirement pension (14%), wedding (13%), purchase of various electronic appliances or study (11%), as well as to start a business (7%).
Survey results indicate that
44% of youngsters make savings without any clear purpose, and finances serve as “a safety pillow”.
In this group there are no major differences when it comes to youngsters with different education and income levels.
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