Nearly half of Latvia’s residents (42.3%) create savings in the form of cash. 17.4% of residents use bank accounts for savings, according to a study performed by Ferratum Bank about saving habits of Latvian residents.
7.7% of Latvian residents admit having deposits in some pension fund, 1.3% of residents keep savings in the form of jewellery, and 1.4% purchase shares.
Study results show that 30.4% of residents try saving at least EUR 50 every month. 13.8% say they always try saving 50 to 100 EUR every month. 5% of respondents try saving more than EUR 100 every month. Only 4.3% manage to save more than EUR 200 a month, and 1.8% – save more than EUR 500.
It should be worth mentioning that 18.3% of respondents say the monthly savings amount tends to change every month.
When asked about their main motivation for creating savings, 34.9% of respondents mentioned having some specific goal in mind, whereas 18.3% of respondents said savings will serve as a safety pillow for emergencies. Residents also make savings to finance their children’s education (9.2%) or pension (4.7%). 4.3% of Latvian residents admit making savings simply because they are unable to spend all their income, according to results of the study.
When asked about their saving habits, 43.7% of respondents said they understand that making savings is good, but at the same time there aren’t many opportunities for them. 17.8% of residents manage the find room for making savings, whereas 11% admit making savings only when they have loose funds. Only 2.7% of residents make no savings because they have no money to afford making savings, and as many residents say they make no savings and believe people should live ‘in the now’. 2% plan to start making savings soon.