A recent economic study reveals nearly one-third of Saudis suffer from an inability to strike a balance between financial expenditures and income, and achieve adequate savings, due to both high prices and weak financial management skills.
Social pressures often motivate people to spend more than they earn, in turn increasing debt to unprecedented levels, according to the study.
The study conducted by the Knowledge Center, a specialist in studies and research programs, reveals 52 percent of Saudis do not save at all, and face great difficulties in managing expenses.
Thirty-three percent of participants in the study cited insufficient income levels to match their current expenses, in turn making it impossible to save part of their income in the form of cash or investments such as real estate. Fifteen percent cited an unstable financial situation, as they are forced to rely on credit cards or borrowing to meet expenses.
Upon conducting personal interviews with participations in Riyadh, Jeddah and Dammam, the center found that only 25 percent of Saudis feel good about their current financial positions, while two-thirds of respondents confirmed they save less than 10 percent of their income or have no savings at all. However, a large portion of respondents are interesting in saving money and are looking for financial guidance.
Fifty percent said they have never looked at investment options as a way to increase their savings, while investment in gold and long-term stocks, bonds and deposits is considered the best options for the other 50 percent of participants.
The most common expenditures or investments that might destabilize the financial situation of participants include marriage and purchasing a new home, as well as expenditures arising from social pressures, such as luxury cars, children’s education, travel and tourism.
Agencies
