Ecuadorians allocate savings not only to debts but also to their security

The continuous assaults on businesses or citizens have generated an additional reason to save. No longer does it only prevail to save to pay a debt, go on a trip or to study. There are other priorities such as gathering an amount to undertake or to feel safe.

As 22-year-old Aldo López is doing. He has been raising money for a few weeks to buy pepper spray and install cameras in his vehicle. “I have been saving about $ 70. With that I hope to have greater security in my vehicle with the security films that go on the windows. This is the most expensive, ”he mentions.

Aldo is dedicated to the service of catering and with that income he hopes to gather enough savings. He is concerned about the crime rates in Guayaquil.

A better level of saving is maintained in Ecuador and is practiced a little more by women

The same unease is shared by Edith Lazo, 34. She has been separating $ 20 a week from her salary, which she then uses to travel by taxi when she needs it.

Whether it is day or night, he prefers to separate more money and arrive calmly at his destination, than to be with the uncertainty of traveling by bus.

Instead, Andrea Erazo, 28, with his mother they have just used their savings to invest in security. They reinforced the doors of his home, located in the south of Guayaquil.

And it is that the reasons to save are changing according to the circumstances, say economic analysts.

“Last year that the pandemic was at its peak, people began to have a dynamic of saving more for eventualities. (…) Now with the insecurity, that leads to companies and occasionally families to save money to buy equipment, at least basic, to have a little security in their immediate environment, ”says economist Jorge Calderón.

Today is World Savings Day, and some citizens apply this dynamic daily, weekly or monthly. There are those who keep their capital in a piggy bank or deposit it in a bank. In this last aspect there has been an increase, according to figures from the Association of Private Banks (Asobanca).

As of September 2021, deposits in private banks reached $ 39,078 million; they registered a 12.8% growth compared to the same month of 2020. The monthly increase in deposits was 1.4%.

This segment has remained on the rise. In September 2019 there were $ 32,071 million in deposits and in the same month of 2020 it was $ 34,644 million.

The current figures for the economist Héctor Delgado show two aspects: the degree of uncertainty left by the pandemic and signs of reactivation.

Five simple tips to learn the habit of saving

“I think the pandemic showed us the importance of saving, however, we still have a long way to go to reach a culture of saving,” he says.

Delgado states that the reasons for saving will always change, according to the needs like create a business, have a “cushion” for emergencies and the most common: pay debts.

“We have seen how health became a priority for everyone or how safety today is also a priority,” he says.

Ariel Peñafiel wears several months saving with his girlfriend in a bank account between $ 50 to $ 80. Your goal is to create a custom detail selling business.

While 41-year-old Anthony Moscol is saving to pay debts that come to $ 400, approximately. He was affected at work by the pandemic and on that road he drags a bank debt.

How to save?

• Set financial goals: It is important to establish a total savings goal and the time during which you want to save, with total autonomy in managing your money, advises Francisco Nazati, head of Personal Banking at Banco ProCredit.
• Reduce expenses at home: There are several ways to save. For example, if you have a very high cable television plan, you can consider opting for a cheaper plan. Expenditures on basic services can also be reduced. “People have understood that, in terms of water consumption, the times for washing dishes can be optimized. You can save electrical energy, avoiding the excessive use of air conditioners or heaters ”, explains Nazati.
• Avoid ‘ant’ expenses: They are those frequent purchases of things that we do not really need, and that can be avoided, such as outings to restaurants or cafes, among others. At that point, it is not a question of depriving oneself but of avoiding that these tastes are recurrent.
• Set a percentage of income as savings: It is essential to set a percentage of the monthly income to use for your savings. “If the idea is to save 20% of income, and if there are two taxpayers, they can each save 10%, facilitating the construction of this savings fund,” remarks the expert. (I)