Three out of four Peruvians have cut their spending to meet a savings goal
The 2019 Peru Financial Capability Survey shows that investment in fixed assets such as real estate and human capital such as education has become the main financial goal of most Peruvians. The survey has also helped assess progress in specific areas such as financial literacy and behaviors, among others.
Three out of four Peruvians who have taken some sort of action to meet their savings target have cut their spending, invested capital or looked for new or additional sources of income, which shows a greater commitment to financial goals, according to the “2019 Peru Financial Capability Survey,” conducted by CAF—development bank of Latin America—and presented during the Conference “Financial Literacy in Peru” organized by the Superintendency of Banking, Insurance and AFP (SBS).
About half of respondents noted that they have some financial goal, including notably buying or renovating real estate, paying for studies, opening a business and buying a vehicle, which shows significant social progress by focusing on fixed asset investment and human capital. However, having a financial goal does not necessarily translate into a higher savings rate of Peruvians. In fact, only 47% of respondents of the 2019 survey claim they save, compared to 54% in 2013.
Furthermore, comparing the results of the 2013 and 2019 surveys, we see great progress in income stability, from 48% to 74% of respondents, a key factor to improving well-being of Peruvians.
“The efforts in measuring financial capacities of Peruvians are crucial for the design of financial literacy programs as part of the Financial Inclusion Policy, as it helps identify existing challenges in order to take concrete actions that have an impact on the financial well-being of the population,” explained Diana Mejía,, senior specialist in the Directorate of Private Sector Analysis and Technical Evaluation at CAF.
Savings accounts are the most popular financial product in the sample, with considerable growth compared to the previous survey (36% in 2019 vs 19% in 2013), followed by debit and credit cards, as well as life and health insurance.
The survey conducted on 1,205 men and women over the age of 18 of all socio-economic levels, residing in urban and rural areas of Peru, also identified progress in the financial literacy index. “This is noteworthy given that the financial literacy programs under the National Financial Inclusion Policy have a direct impact on this improvement,” said Mejía.
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