A penny saved

Do you manage to save money? Do you believe that you’ll be able to stash away some cash next year?

By YAIR ASSAF-SHAPIRA
July 10, 2019 19:05
1 minute read.
A penny saved

DISCERNIBLE TREND: More households than ever believe that they are quite or highly likely to save money in the coming 12 months. (photo credit: JERUSALEM INSTITUTE FOR POLICY RESEARCH)

Do you manage to save money? Do you believe that you’ll be able to stash away some cash next year? In the monthly Consumer Confidence Survey conducted by Israel’s Central Bureau of Statistics, people are asked whether they think that they and their families will manage to save money during the coming 12 months. In May 2019, a little less than half (45%) of respondents thought that it was highly likely, or quite likely that they would manage to save money during the coming year. This is quite a low percentage, since it means that 55% think that it is not likely that they will manage to save money this year.

However, it does represent a moderate upward trend in comparison with previous years. For example, in May 2015, only 32% of Israeli households believed that they would manage to save money in the coming year. In May 2016, the amount was 40%, and in May 2017, it rose to 41% and reached 44% in 2018 – culminating in 45% this year, as previously stated.

It isn’t clear whether the ability to save money is the single, or the central, component that comprises satisfaction with the economic situation. According to the Social Survey for the years 2016-17, 61% of Israeli residents (ages 20+) were satisfied or very satisfied with their financial situation. The rate was similar in Jerusalem and Tel Aviv (59% and 60% respectively). Thus, it seems that at least some of those who don’t manage to save money are nevertheless satisfied with their financial situation.

More worrying data was revealed with respect to covering expenses. Only two-thirds Israeli residents (ages 20+) responded that they manage to cover all their monthly expenses. The highest percentage (76%) to respond positively was found in Tel Aviv, while in Jerusalem, the figure was only 59%. This means that 41% of Jerusalem residents do not manage to cover their expenses. One may assume that there is no chance that these people will be able to save any money.

Translated by Gilah Kahn-Hoffmann.






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