PFinsights #35: You don’t play around with savings… or do you?
In this latest release of PFInsight, here at Punto de Fuga we analyse how Spaniards currently approach saving and investing, against a backdrop of economic uncertainty, concerns about the future and the need to safeguard financial stability.
The study reflects a society where caution prevails, although significant generational shifts are also beginning to emerge in the way people understand investment and relate to money.
Although 80% say they currently have savings, the prevailing feeling is one of uncertainty:
- 60% admit that they are unable to save every month
- 52% are saving less than a year ago and
- 69% are worried about being able to maintain their level of saving in the future.
Against this current backdrop, a conservative approach to investment prevails, and although 6 out of 10 have some of their money invested, low-risk products with lower returns clearly predominate:
- the most commonly used products are deposits and interest-bearing accounts (34%), well ahead of investment funds (23%), pension schemes (16%) or the stock market and shares (15%).
- Cryptocurrencies (7%), ETFs (6%) and government bonds (5%) continue to account for a much smaller share.
The main barriers to investing are closely linked to economic and emotional uncertainty. Fear and mistrust are clearly the leading factors holding people back from investing, followed by financial constraints and a lack of financial knowledge. Returns take a back seat, reflecting the fact that, for many, the priority remains protecting their money rather than maximising profits.
One of the key insights offered by this PFinsight is the clear generational shift in attitudes towards saving and investing.
- Generation Z is more open to experimenting with new forms of investment and alternative channels. Although they do not invest more than other generations, they do stand out for having greater confidence in their own ability to invest and for making greater use of neobanks, fintechs and online platforms (these new alternatives carry more weight than traditional channels).
- In contrast, Generation X appears to be the generation most stressed by the current climate and the most conservative. They are the ones showing the greatest concern for maintaining their ability to save and their standard of living, turning to lower-risk products and traditional channels as a way of protecting the wealth they have accumulated (7 out of 10 invest through traditional banks).
In short, the study reflects a society characterised by financial prudence and concern for the economic future, but one in which the younger generations are beginning to embrace more digital investment models and are playing a more prominent role.
