💵 Saving Patterns

From Bolivia’s strong savings culture to Paraguay’s struggle.

This is a strange time for financial security.

Stock markets are losing trillions of dollars in market value as companies struggle to accommodate escalating trade wars. Inflation, though down from highs seen in 2022, is still wreaking havoc on people’s everyday purchasing power.

In the face of all this, a security blanket might be exactly what the doctor ordered.

Savings accounts are an important part of financial health, as they build up a buffer between you and debt. But how many Latin Americans actually save money? As it turns out, the answer depends in large part where you live.

Bolivia and Brazil are home to the best savers in Latin America. Over half of Bolivians have saved some money, the only country where this is the case. Meanwhile, just over seven percent of Brazilians have turned to mobile money apps like Nubank or Mercado Pago for their savings needs—another regional leader.

On the flip side, a smaller percentage of Paraguayans – just over a fifth – have set aside any savings at all than another of their regional peers. Paraguay is notably one of the least developed, and most unequal, countries in all of Latin America.

Mobile money apps seem to have found more success in larger regional players like Argentina and Mexico, which tracks with the markets prioritized by these sorts of apps.

As a whole, it’s clear that most Latin Americans are today in a precarious position given their lack of financial safety net. Tools to help these citizens keep a bit more of their cash for their rainy-day fund would go a long way.