| Abstract [eng] |
This qualitative study attempts to find out why Lithuanian’s (households) for many years are among the least saving in the European Union. Calculations show that for many Lithuanians the basic public pension (supplied by the government) will not be enough for a dignified life in their retirement. A paradox has also to be considered: according to the published statistics on real estate ownership, Lithuanians, in contrast to savings, is one of the leaders in the EU. This phenomenon led to find out whether Lithuanians do not really save or perceive saving specifically. Thus, based on a qualitative study – analysis of in-depth interviews with 4 financial experts and 15 informants from different age groups (age ranges: 18-29, 30-49, 50-62) allowed to understand better and refine the trends of consumption and savings in Lithuania and the possible reasons for the low level of household saving rates. The first part of the research (experts’ interview) allowed to define better these tendencies based on statistical data from official sources. Analysis of experts interview also allowed to define what can be objectively considered savings and what are criteria that objectively define correct saving behaviour. The analysis of open-ended questions for informants and their answers showed the trends in the financial behavior of different age groups. The savings choices of this research informants were assessed, with a special focus on information on the attitudes towards the acquisition and possession of real estate. As well as statements on the perception of rationality in personal financial management, savings, and consumption trends. The knowledge of financial literacy held / acquired by the informants is considered separately and the link between financial literacy and the propensity to save is assessed. This indicator is partly related to the age of the population, to find out to what extent this indicator, as well as age-related socio-cultural experience (tendency to distrust financial institutions, late knowledge of the market economy) can be decisive factors in deciding to save and choosing savings. Empirical data from the analysis of the two-part research showed that: 1) the most consumerist attitude is noticeable among the middle group (30-49 years old). This group is the least frugal, their saving is mostly undisciplined, with some not having accumulated a financial reserve. They tend to trust financial institutions strongly and tend not to try more risky savings tools. There exists a belief that they rationally assess their limited opportunities and ability save more money through higher risk saving tools - as the best option they choose saving money in a bank account or buying real estate with a loan; 2) The youngest age group of respondents (18-29 years old) is frugal and tends to save in a disciplined manner, although often underestimates their financial literacy skills, unlike the middle-aged group, they can clearly state their savings goals, financial behavior logic, tend to use high-risk financial tools: buy shares, cryptocurrency, choose highest risk pension funds; 3) The senior working age group (50-62 years) has perhaps the strongest beliefs about their savings and consumption. Some members of this group, although they have working relations with state institutions and banks, state that they trust them in principle, but some of them still do not tend to save even in a bank account and have chosen to save in cash. Just a half of this groups’ informants have financial reserve, which due to saving in cash, is also under the of inflation. In general Lithuanians tend to save, and understand the importance of saving and possible alternatives for more efficient saving, but lack the skills (financial literacy) and emphasize it, so instead they choose subjectively the most rational saving type – buying real estate for living believing that the ownership of their home will lower their expenses later in life. |
