Today in My Finance, we tell you what happened historically with Saving in Latin America, what is happening in this current pandemic and how we can improve our financial future.
How Do We Save Money?
According to Tomás Serebrisky, Principal Economic Advisor at the Inter-American Development Bank (IADB), “Latin America saves little and poorly, and is facing a serious savings problem”. The problem is not new, and informal economies and the large portion of the population that remains out of the system are a part of it. Serebrisky mentions that “the main issue is not who is able to save money, but the quality of such savings, that is, how those savings are managed, or what are they used for”.
The region’s economy experiences cycles: it fluctuates between periods of some stability and others of economic crisis. Therefore, citizens must pay attention to decide on the best strategies for each stage, and to find those opportunities that could favor them and their personal, family, or business economies. In other words, Latinos have gained some expertise in adapting themselves to complex scenarios, and on finding creative ways to save and make money work.
What Do We Save For?
The reasons why a person or a family start saving vary: to travel, to pay for college, as an emergency fund or to buy a new house. Having the appropriate tools to do so is of major importance. This useful knowledge goes from understanding your type of income to learning to invest in the stock market. But the available data show that much of the Latin American population lacks such tools.
In the midst of a pandemic, as we face the need of a more conscious management of our economy throughout confinement, questions on savings arose stronger and more urgent than ever. In this context, financial education and access to quality savings instruments have become essential. It is not only a matter of enhancing your personal capital, but the necessity to properly manage the money on which your future and your family’s future depend.
Supra has a team of outstanding financial professionals who can advise you on the best options to protect your capital and get the most out of it. To find out more, contact us.