Average monthly personal savings in 2024 in Serbia amounted to 6,579 dinars, an increase of 498 dinars from 2023.
The most common motives for saving are creating an emergency and hardship fund (53%), a financial reserve for the family (44%), and vacation planning (34%).
As of 2023, nearly one-third of citizens set aside their savings in the same account where they receive their salary. For half a decade, Erste Group has provided annual insights into the savings and investment behaviours, attitudes, and motivations of Serbian citizens through its traditional survey on saving habits. The results for 2024 reveal concerning trends in citizens’ financial outlook. Almost half of respondents believe their financial situation has worsened in the past two to three years, with only 5% seeing an improvement over the previous year.
Another significant finding is the increase in citizens who prefer to keep cash at home or in a safe, a trend observed among 39% of respondents. Additionally, it’s troubling that a third of citizens report not saving at all. These findings point to the need for improved financial education and support to enhance financial literacy and empower citizens in making decisions about savings and investments.
Saving remains a priority
Serbian citizens again highlighted the importance of saving this year, with 68% considering it essential to set aside money. However, 78% wish they could save more, reflecting an 8% increase in dissatisfaction compared to 2023. Only 5% of citizens are satisfied with their current ability to save. Common reasons for saving include creating an emergency fund (53%), building a family financial reserve (44%), and planning vacations (34%), with 19% saving for electronic device purchases.
“Erste Bank is proud of its long tradition of savings, spanning more than two centuries, making us a recognized and stable financial institution in which citizens place their trust. By the end of September, our clients held nearly 5 billion dinars and approximately 255 million euros in savings. The overall increase in household savings across the sector, amounting to around 1 billion euros since the beginning of the year, indicates sustained confidence in the domestic financial system,” stated Nino Stameski, Director of the Novi Sad Regional Center at Erste Bank Serbia.
We are saving more than in 2023
In 2024, the average monthly amount saved by Serbian citizens was 6,579 dinars, 489 dinars more than in the previous year and 1,063 dinars more than in 2022. Over recent years, savings have increased by around 500 dinars annually, showing that saving remains a key component of financial strategy for many citizens of Serbia, despite challenges.
Many citizens express the desire to save to prepare for unforeseen events, build financial reserves, or plan vacations. However, they often face obstacles like low income or high inflation, which can hinder regular savings efforts.
Financial literacy: Who teaches us?
The survey revealed that 24% of citizens feel completely uncertain in their knowledge of financial topics and banking products, with this figure fluctuating by about 1-2% annually. Unfortunately, most respondents do not actively plan to improve their financial literacy. In terms of financial information sources, respondents ranked the media highest (76%), followed by banks and savings institutions (72%), with parents and family members in third place (68%).
Recognizing the need for financial education, Erste Bank launched a comprehensive financial literacy program, #ErsteZnali, in 2018 to help citizens of all ages make better financial decisions.
“For years, through various activities, projects, and initiatives, we have worked to promote financial literacy among citizens. We aim to help them better understand financial products, how to use them effectively and make responsible financial decisions. These decisions are a prerequisite for creating a better society, where we all apply acquired knowledge about saving and other financial topics,” said Tatjana Manojlović, Director of the Retail Client Sector at Erste Bank Serbia.
Investment products are difficult to understand
Research shows that knowledge of investment funds among Serbian citizens is very limited. Many are not well-informed about the different types of funds. According to the survey, 45% of respondents report not understanding basic concepts related to investment funds. On a positive note, the number of citizens who have heard of sustainable investment products—investments that prioritize environmental, social, and ethical criteria—has risen from 35% to 41% compared to 2023.
However, 73% responded “no” when asked if they could envision investing in sustainable stocks, securities, bonds, funds, and similar products.
(Biznis i Finansije, 29.10.2024)
https://bif.rs/2024/10/u-srbiji-vise-od-30-gradjana-ne-stedi/
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