(Finance) – The way in which saving is perceived and approached by Italians has undergone “a significant transformation” over time. This is confirmed by research by Acre (Association representing banking foundations and savings banks), created in collaboration with Ipsoson the occasion of the 100th World Savings Day, which will be celebrated on Thursday 31 October in the presence of the President of the Republic Sergio Mattarella, with speeches by the President of Acri Giovanni Azzone, the President of Abi Antonio Patuelli, the Governor of the Bank of Italy Fabio Panetta and the Minister of Economy and Finance Giancarlo Giorgetti.
The savings approach
Previous generations viewed saving as a fundamental pillar of personal financial management, associated with virtues such as prudence and wisdom, and was seen as a guarantee for the family’s financial security against life’s uncertainties. Today, saving is primarily regarded as a necessary to ensure tranquility and economic stability (for 38% of Italians), especially by Boomers, among whom the figure reaches 46%. Secondly, it is an opportunity to achieve specific objectives.
Young people are aware that they have different priorities and savings objectives from those of their parents and follow their priorities (63% of GenZ and 64% of Millennials respectively say this vs 56% of the total). Furthermore, 33% of Italians perceive that they have one lower saving capacity than previous generations due to current macroeconomic conditions, in particular the rising cost of living (70%) and contemporary working conditions (60%), and due to changes in lifestyles (60%). In particular, the increase in the cost of living is felt by GenZ (76%) and Boomers (77%), while different working conditions are mentioned by GenX (65%). Across generations, attention to saving remains high, when possible.
Standard of living and confidence
The Acri-Ipsos study highlights a improvement in the standard of living of familieswhich stands at levels higher than pre-pandemic levels (49% of families declaring an improved or easier to maintain standard of living vs 44% in 2018). It is the result of the decrease compared to 2023 in families in severe economic difficulty and the growth of families who have recorded an improvement. Those satisfied with their economic situation therefore rise from 56% to 64%.
Italians’ expectations regarding the future appear to be oriented towards give a lot of confidence in your personal ability to deal with the situation (34% declare that their situation will improve vs 15% who think it will worsen), reassured by having managed the last few years well, and strengthened by a certain optimism about their ability to save and recompose spending. Expectations for the world economy appear better than in the last two years, although not optimistic.
Investment choices
At a financial level, Italians’ choices remain stable within a certain range caution in the investment approach. Around two thirds of Italians choose not to invest, preferring the perceived security of liquidity and a third invest only a small part of their savings. The growth in the propensity towards safer financial instruments is reduced, with a slight growth of those most inclined to risk (9% vs 7% in 2023), driven by falling interest rates for the most conservative instruments, and by uncertainties on the yield of the ‘immobilize. The need to carefully evaluate the riskiness of the specific investment therefore increases, while the riskiness of the proponent seems to be a less relevant issue today, consistently with the growth of trust in rules and controls (39% vs 36% in 2023).
Almost half of Italian families manage to saveand it does so with less anxiety and worry than in the past. The number of families who, thanks to their savings, would be able to cope with a significant sudden expense is increasing, and more than 3 out of 4 families, a stable figure, believe they are able to cope with a medium-sized sudden expense. The ability to save is also facilitated by the ability to adapt one’s consumption to the current situation: rationalization of holidays, away from home and purchases of semi-durable products, to the advantage of domestic consumption, personal care and well-being and prevention and health.
Link between savings and support for the country
According to the research, it remains “very strong”. perceived link between savings and support for the country; 3 out of 4 consider it important, 1 out of 5 irrelevant, with an even greater consensus among young people (showing a balance of +61 percentage points vs a balance of +52 of the total population). The perceived link between social and environmental responsibility and the country’s economic development remains relevant, even if not growing. The role of trade associations, intermediate bodies and the Third Sector is always perceived as relevant in promoting social cohesion and economic development (31% and 38% respectively), especially for younger citizens (36% and 46% respectively) . Italians continue to declare themselves very active on the volunteering front, offering their time and contributing financially to support the third sector and charitable initiatives.
The picture therefore outlines a majority of the country which, having the habit of saving and modulating its expenses according to the economic cycle, is able to feel better or at least contain the negative effects of price increases (49%), also due to the drop in energy and interest rates. This is accompanied by a minority (17% of Italian families) who are unable to escape from a situation of survival or poverty, even when working, and feel increasingly at risk, not having more resources to draw on, or expenses to reduce. Saving remains a central element in the lives of Italians, even for younger people, who experience it as one tool to realize your own projectsmore than a family habit or as an element of reassurance towards the unexpected events of the future. In any case, the dominant idea is that saving has a positive effect on one’s life and that of the country, allowing growth to be achieved which – hopefully – would be economic, social, civil and respectful of the environment.
(Photo: Towfiqu barbhuiya on Unsplash)