Here is a new article from our community. We hear the topic often: the very large amount of liquidity in current accounts in Italy is now known to the world. Italians are a people of savers: they do not invest their savings, and if they try to do so, most lose money; we rank first in low financial literacy in Europe.
So far we are there, and we certainly don’t have to repeat it. An interesting fact is that since we have been in the covid period, we have seen a peak in current account liquidity (790 billion euros) not seen since 2015.
A large part of Italians’ savings remains parked in interest-free checking accounts instead of being invested in financial instruments with good risk/return potential. In addition to not earning interest, the money is also taxed with the various stamp duties in effect above 5,000 euros. As a result, in addition to the harm, there is also the mockery. With cash sitting idle in current accounts, savers lose yield year after year.
Unfortunately, we fail to make people understand that saving is not an investment but an initial form of investing, so things are quite different.
We often hear friends, family members, acquaintances say “I save money.” Going deep you find out that their savings is practically the remainder of their salary, obviously after spending almost all of it.
What do we notice immediately ?
1- No financial savings planning done properly.
2- You look at expenses first and then if there is something left over welcome….
3- What little is left over does not yield, does not create more income and is eroded by inflation.
4- Most of these people do not think about investing properly, but prefer to keep the money in the account (most) or rely on unsuitable people (phantom brokers, etc.).
5- Research the correct tools for investing but then do not apply the concepts learned.
We therefore note that there is no shortage of money in our country. Rather, it is rather completely wrong training (right from schools we are not taught any economic – financial concepts ), with the natural consequence of bad results achieved in this area.
The raw material-money-is not lacking, it should just be channeled in the correct and profitable way for all.