Do you remember the last time you saved money?Maybe you haven't been to the bank for a long time because you feel that there is no point in saving money, the interest rate is too low, and it is better to use it for consumption or investment. You are not alone, and more and more people are choosing not to keep their money in the bank, but to use it for other purposes.
According to statistics, in December 2023, China's resident savings rate is only 285%, a record low and down 64 percentage points. This is a surprising number and a social phenomenon worth paying attention to. Why don't the people's money stay in the bank?What are the reasons for the serious decline in household savings?
An important reason is that the current level of interest rates is too low, resulting in a low return on saving money, even lower than the inflation rate, that is, saving money will not only not increase in value, but will depreciate. This is a phenomenon on a global scale, and many countries' ** banks have adopted low interest rate policies in order to stimulate economic growth. For example, the U.S. federal interest rate is currently only 025%, and the deposit rate in the eurozone is even -05%, that is, the bank pays interest to the ECB, not collects it. Although interest rates in our country are relatively high, they are also constantly falling.
In December 2023, China's one-year deposit rate will be 15%, compared to 2 for the same period1%, that is, the real interest rate is -06%。In such an environment, saving money not only can not maintain value, but also lose purchasing power, therefore, many people choose not to save money, but to look for other more profitable investment channels, such as **, wealth management products, real estate, etc.
Another important reason is that with the improvement of living standards and the renewal of consumption concepts, people pay more and more attention to quality of life and instant gratification. This consumerist tendency has led people to spend more money on consumption rather than saving. The younger generation, in particular, is more focused on life experiences and personal growth than on the traditional accumulation of wealth.
They are willing to spend money on travel, education, entertainment, health, etc., rather than saving for the uncertainty of the future. They believe that living in the moment and enjoying life is the most important thing. They are also more optimistic and confident, believing that they can achieve their dreams through hard work and innovation, rather than relying on savings. They are also more open and diverse, accepting different lifestyles and values, rather than sticking to traditional social norms and expectations. These changes in consumption concepts have made the savings rate of young people much lower than that of the elderly, and also lowered the overall savings rate of residents.
Another reason is that with the improvement of social security systems and the improvement of public services, people are less concerned about future uncertainties and risks, and therefore, the need for precautionary savings is also reduced. Precautionary savings refers to the savings that people make to cope with possible adverse situations, such as unemployment, illness, retirement, etc.
Such savings usually account for a large part of the residents' savings, especially when the social security system is not sound and public services are inadequate. However, in recent years, China has made remarkable progress in social security and public services, such as the establishment of a basic medical insurance system covering the whole people, the expansion of the coverage of basic old-age insurance, the increase of the minimum wage standard and the minimum level of living security, increased investment in education, culture, science and technology and other fields, and improved the welfare level and quality of life of the people. These measures have effectively reduced people's incentive to save precautionarily, making them more willing to use money to improve their lives in the present rather than saving for the uncertainty of the future.
With the decline in interest rates, the renewal of consumption concepts and the improvement of social security, China's residents' savings rate has hit a record low, which has aroused widespread concern. In a low-interest rate environment, saving is no longer cost-effective, and more people are choosing to use their money for instant gratification and investment. The younger generation is more focused on life experience and is willing to spend money to enjoy the moment. The improvement of social security has reduced the need for precautionary savings. This social phenomenon reflects people's greater optimism about the future, and also calls for more ways to manage and invest in financial management and investment that meet the needs of the times. Will the interest rate on savings bonds continue to fall?