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Survey: youngsters in Latvia save up money for travel or first mortgage instalment

Photo: pixabay.com.
More than half of Latvian youngsters aged 18 to 25 make savings by diverting an average of EUR 50 every month. Around 60% of youngsters make savings for something specific, such as travel, big purchases or first mortgage instalment, as concluded in SEB Bank’s survey.

Compared with results of a similar survey performed in 2016, the ratio of savings-makers among Latvian youngsters has declined from 66% to 54%. On top of that, Latvia has a smaller proportion of saving-making youngsters than Estonia and Lithuania (75% and 72% respectively).

Still, the majority of youngsters in all three Baltic States make savings for some specific purpose. Every fourth youngster in Latvia makes savings for travel, a large purchase or first mortgage instalment. Every fifth one makes savings for a car or some other vehicle, whereas every sixth – for education. Youngsters reveal that they save money for unexpected expenses – wedding or children, business and retirement. Trends are similar in Lithuania and Estonia – the most popular goals for making savings include travel, housing, large purchases and cars.

«The habit of making savings should be taught at childhood. Parent example plays a major role here. I am happy that half of youngsters plan their expenses and create savings. We see that SEB Bank’s Digital Deposit Box is in high demand. It helps make savings without changing habits. The biggest difficulty when making savings is training oneself to divert part of income. The Digital Deposit Box helps make this process seamless – every time a purchase is made using a card, the paid amount is rounded to a whole euro, diverting the difference to the deposit account. Using small payments, SEB Bank clients can save around EUR 20 every month,» explains SEB Bank board member Arnis Škapars.

Survey results show that 80% of those who make savings either work or combine work with studies – the larger the income students have, the larger the amount they are able to divert for savings. 32% of saving-makers divert up to EUR 20 a month, 27% of them divert from EUR 20 to EUR 50, 22% of youngsters divert EUR 50 to EUR 100, whereas 19% of youngsters can afford to divert more than EUR 100 every month.

SEB Bank internet survey was performed in August 2017. 1,195 youngsters aged 18 to 25 participated in this survey.


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