The Slovenia Times

Slovenians frugal and financially conservative


The rate is calculated from the relation between one's income and the amount of savings. The rate in Slovenia was at 14.1%, which means that every citizen put about one seventh of their income away for a rainy day.

The survey has found the highest savings rate in Sweden, at 17.8%. Also ahead of Slovenia are Germany, the Netherlands and France. At the bottom of the savings rate scale were however the UK and Denmark.

A Slovenian was therefore found to be much more inclined to saving than an average citizen of the eurozone, where the savings rate reached 13%, and much more economical than an average EU citizen, as the average for the bloc was at 11%.

The survey also found Slovenians to be rather cautious about where they invest their money, as nearly half of all financial means of Slovenian households (49.1%) were invested in the form of cash and deposits in 2014.

The share invested in shares and other financial papers reached 26.5%, while the share of savings in life and pension insurance stood at 16.8%.

Between 2005 and 2014, there was just one year when the savings rate of Slovenian households was below the the EU average and that was in 2012. In 2006, Slovenia's savings rate was the highest in the bloc, at 17.3%.

After that the rate started to drop, reaching the lowest point in 2012, but it has been increasing again since.

Data from central bank Banka Slovenije show that financial assets of households increased by 4.7% last year compared to 2013. Liabilities on the other hand were down by 0.6%.

An online survey carried out by the Slovenian Marketing Society at the beginning of the month also showed 51% of Slovenians save money for a more secure future, while 47% do it to be able to cover unexpected costs. Some 14% said they saved for a vacation, while 10% said they saved for a home.

The same survey showed that 19% of Slovenians took out a loan in the past six months. Most of the loans were planned (65%), while some 20% made the move because they saw a good purchase opportunity. More than a third took out a loan to buy or renovate their home.

The generations who are entering the labour market now are much more aware of the seriousness of the situation and their responsibility for their actions, psychologist Eva Boštjančič has told the STA.

They know that they will have money only if they work hard and save, while their predecessors relied on society to come to their rescue in case of an emergency. "The responsibility is therefore being shifted from the society to the individual," Boštjančič believes.

The political and social changes have forced people to change their mindset. "Since we have changed, this affects on how we raise our children and their attitude to money, work and savings."

World Savings Day has been observed since 1924, when representatives of 700 savings banks from 27 countries gathered in Milan to raise awareness in society of the importance of saving money.

In Europe, the first banks appeared in the 13th century, while in Slovenia the banking tradition goes back about 200 years. The first financial institution on Slovenian territory was the savings bank Ljubljanska hranilnica, which was founded in 1820.

The first bank incorporated as a joint stock company was Ljubljanska kreditna banka, founded in 1900.


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