Maybe you have noticed that the author of this article made a small mistake that really makes the numbers meaningless. The average yearly income is calculated before tax so that 20k USD for some countries is really 10k USD per year. I don't know if it's like that for all countries but I took a few EU countries and the numbers are incorrect.
Example:
Slovakia
https://www.ceicdata.com/en/indicator/slovakia/annual-household-income-per-capita
Real yearly income per capita ~8k USD and according to the author of this article it's $22,031 (almost 3 times higher)
Poland ~6k USD and according to the author it's $23,998 (4 times higher)
https://www.ceicdata.com/en/indicator/poland/annual-household-income-per-capita
I've been to these countries and I can confirm the data from my links. The average salary is below 15k USD a year. If you add tax you're left with maybe 12k net wage if you're lucky. This makes all the data from the comparison unreal and useless.
Topic: Average savings across the globe - page 3. (Read 3972 times)
Here in Brazil, we are certainly in a worse situation than Greece. The current minimum wage is 998 reais, while it should be 4500 reais if it accompanied inflation as it should. The population is all in debt, and the rich continue to accumulate more money.
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
I don't know how they've made those calculations as I've heard from a credible source that 75% of USA residents don't have $500 until the next month's paycheck. So you could say that they're living paycheck to paycheck.
How is Japan at -0.47%? 
IMHO these days 20% is still low when saving. The problem is when the cost of living is high, it makes it really hard to save up. And then your saving's value depreciate if you fail to invest it.
Guess only thing we can do is to try to cut away as much non-essentials from our expenses. The world won't end if you don't watch Netflix or drink at Starbucks. Also helps if you can arrange to live with a family member and ask for a "moratorium" - something like not having to pitch in the bills for a few months after landing a job so you can at least set up an emergency fund for yourself.
IMHO these days 20% is still low when saving. The problem is when the cost of living is high, it makes it really hard to save up. And then your saving's value depreciate if you fail to invest it.
Guess only thing we can do is to try to cut away as much non-essentials from our expenses. The world won't end if you don't watch Netflix or drink at Starbucks. Also helps if you can arrange to live with a family member and ask for a "moratorium" - something like not having to pitch in the bills for a few months after landing a job so you can at least set up an emergency fund for yourself.
-snip-
Savings is not always beneficial for economical growth. National Income is defined as sum total of consumption and savings i.e. Y = C + S.
Now suppose there is increase in income, the additional income could be either saved or spent. If it is saved then marginal propensity to save will increase which means no economic activity has been undertaken with additional money. Hence, MPS is inversely proportional to economic spending.
So if additional income is always saved then it may act as hindrance for economical growth.
Oops, yes! My bad. I ignored an important assumption in my post. In case of two-sector economy, S = I where I is investment. So yes, when people save money, they either keep it to themselves or keep it in banks. In case they keep money with themselves then it doesn't contribute to economic development but if they deposit it with bank, bank further lend it to others. Here, another concept comes into picture, the concept of Investment Multiplier. When banks lend money, the borrower further give money to someone else, the other person may deposit money into his bank. This way money is back into bank and bank can once again lend the same money to someone else. So, savings do contribute to economic development if it is channelled through banks.
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
This serves to show the culture surrounding money and saving within different countries. In this day and age, globalization and social media has overtaken the world and materialism manifests in every society. From this information we can gather that the American people clearly live in the moment, however, with such a low average savings, it is blatantly obvious that they do not understand how to plan for emergencies and the curve balls that life will undoubtedly throw at you. Additionally, European countries can be seen doing extremely well in these rankings as their culture is based around providing a good life for their offspring and ensuring their happiness in retirement. The idea of debt in many countries is looked down upon, but this is clearly not the case in the US where the amount of debt is so high that it is a normal thing. https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
I think the thing is that US has more sort of live in the moment culture. Most of the people there imagine a life where they would work for 5 days and spend that earned money on the weekend. Moreover as the culture in US is that people generally don't have to give a fortune of money to their offsprings as they think they should earn their. Life on their own. Moreover the government takes care of the retirement benefits to every person who is incapable of earning after a certain age so this I think is the reason why US ranks last on this list of average savings across the globe. https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
Savings is not always beneficial for economical growth. National Income is defined as sum total of consumption and savings i.e. Y = C + S.
Now suppose there is increase in income, the additional income could be either saved or spent. If it is saved then marginal propensity to save will increase which means no economic activity has been undertaken with additional money. Hence, MPS is inversely proportional to economic spending.
So if additional income is always saved then it may act as hindrance for economical growth.
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
Savings is not always beneficial for economical growth. National Income is defined as sum total of consumption and savings i.e. Y = C + S.
Now suppose there is increase in income, the additional income could be either saved or spent. If it is saved then marginal propensity to save will increase which means no economic activity has been undertaken with additional money. Hence, MPS is inversely proportional to economic spending.
So if additional income is always saved then it may act as hindrance for economical growth.
Maybe people are hard to save because they really need money for their life. Like above me said, sometimes people only eat once in a day because they cannot save more money. They still search for more jobs for money, and they don't even think about saving some money. But that is not all of them, and I believe some of them still trying to save their money even for the small money. We could only see people can saving once they can fill all their needs, and they still have money. But for the rest of them, I think they cannot do that because they don't have money.
Some people don't save although they live a simple life. Many people in the world find it very difficult to eat more than once a day due to poverty. Imagine if you are to be in such situation how can you use save for the future. Eventually, the few money you would gain would be used to cover basic needs your family needs.
I think $ 2900 is too huge for average wage for Asian. maybe even just 10% of it all. but otherwise i believe every country has poor people. and also many people still didnt know how to do investment. for leftgirly what you said thats is true but i think its not thread started want talking about . its just compare average minimum every country . Unfortunately i didn't see the countries from Africa continent and most of the countries on the list dominated the countries from Europe and America continent and maybe one of the caused why African are excluded because still dominated by poor countries so none of them can be able on the list and from Asia too if i'm not mistaken only three countries can be the top 30 position for average personal amount of savings statistics
Africa is rich in natural resources and many of the countries (such as Angola, Nigeria and Gabon) earn huge amount of revenues every year from the petroleum and natural gas exports. But this money almost never reaches the common people. A very large fraction is taken out of the continent and deposited in tax heavens such as Switzerland and Channel islands, while the people still live in abject poverty.
My country has a similar situation. A huge amount of natural resources and at the same time, the majority of the population lives very poorly. The gap between the rich and the poor is getting bigger every year.
My country can't relate... I don't even expect my country to be on the list knowing the situation of most individuals here. It's easy for people in those country to save money because they're already developed. While my country is in the third world, we're still struggling hard. Though we experienced it before in our history, having equal value to usd...
It may not be accurate to say that those living in developed nations are able to save more than those who live in the third world. Take the case of Japan for example. The living expenses are so high, that young couples are being forced to delay child bearing. On the other hand, the living expenses can be more tolerable in the developing world.
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
That's why Americans are always very rich and their GDP is increasing every year. because they never let their money lose value every year due to inflation.https://www.expertmarket.com/focus/research/countries-that-save-the-most-money
We really need to learn about effective ways to invest so our money doesn't lose value over the years.
as in Switzerland, they are the country with the highest per capita saving in the world (19.03%) but it has remained a very high GDP country in recent years and their economy has also increased. very developed in the service - tourism segment.
My country can't relate... I don't even expect my country to be on the list knowing the situation of most individuals here. It's easy for people in those country to save money because they're already developed. While my country is in the third world, we're still struggling hard. Though we experienced it before in our history, having equal value to usd...
Unfortunately i didn't see the countries from Africa continent and most of the countries on the list dominated the countries from Europe and America continent and maybe one of the caused why African are excluded because still dominated by poor countries so none of them can be able on the list and from Asia too if i'm not mistaken only three countries can be the top 30 position for average personal amount of savings statistics
Africa is rich in natural resources and many of the countries (such as Angola, Nigeria and Gabon) earn huge amount of revenues every year from the petroleum and natural gas exports. But this money almost never reaches the common people. A very large fraction is taken out of the continent and deposited in tax heavens such as Switzerland and Channel islands, while the people still live in abject poverty.
Unfortunately i didn't see the countries from Africa continent and most of the countries on the list dominated the countries from Europe and America continent and maybe one of the caused why African are excluded because still dominated by poor countries so none of them can be able on the list and from Asia too if i'm not mistaken only three countries can be the top 30 position for average personal amount of savings statistics
If someone from India and USA doing the same job but their salary will be huge in difference so where they born is really matter to decide how good they are financially.
Did you mean same job in the same place? Or one from USA and one from India. If they are not in the same place, please do account of average living cost/standard as well. You know both the country has a huge difference in living cost. Therefore, it is basically pulling back to the same.Macroeconomy is a combination of a lot of factors, you can't conclude anything with one or two single factors.
If it was an online job, we could say that it is justifiable because the standard of living in India will be different from the standard of living in the United states, but if they are both working in the United states, what is applicable to the American citizen there is what is also applicable to the Indian citizen there too because they are both under the same influence and under the same government. From what you said, this is what I could actually deduce, regardless of I didn’t get your point completely.
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
I would expect there's a distinction to be made here between different types of average. It's not too clear at first glance (at least to me) how the article makes its calculations.
If average savings are above zero, I would assume this refers to the mean average, which is disproportionately impacted by a relatively small number of people who have huge savings. I am making assumptions here, but I do think that the majority of people are in debt. If you took median average instead, i.e. the savings of someone who has 50% of people with more savings than them and 50% of people with less, then that person would be below zero, i.e. be in debt.
As a general point I think that different types of average should be used in different circumstances, and ideally when one is used the others should be quoted as well. Otherwise simple use of the mean average can be used to lead people into false inferences, in this case that most people have a small amount of savings, when in all likelihood most people are actually in debt and a small number of people who have huge savings pull the mean average up above zero.
Cnut237 your observation is amazing. I totally agree with you! Most people are in debt, but with small people who have huge savings are rising the statistic over zero. Article
does not show how they get calculation, and what parameters they used for that.
Generally speaking majority of the people is in debt, there is no doubt in that. Is there a chance for that to be changed in the future? That`s the right question to ask here!
I hope there's a chance that inequality can be reduced, but trends suggest that it has been worsening dramatically over the last few decades. There's a good book about this, 'Capital in the 21st Century' by Thomas Piketty. There's a brief summary with a few key charts here: https://www.newyorker.com/news/john-cassidy/pikettys-inequality-story-in-six-charts
Also the World Inequality Database provides a lot of good information: https://wid.world/
Here's a good example. It's slightly exaggerated (because the axis doesn't start at 0%), but the trend is clear.
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.
I would expect there's a distinction to be made here between different types of average. It's not too clear at first glance (at least to me) how the article makes its calculations.
If average savings are above zero, I would assume this refers to the mean average, which is disproportionately impacted by a relatively small number of people who have huge savings. I am making assumptions here, but I do think that the majority of people are in debt. If you took median average instead, i.e. the savings of someone who has 50% of people with more savings than them and 50% of people with less, then that person would be below zero, i.e. be in debt.
As a general point I think that different types of average should be used in different circumstances, and ideally when one is used the others should be quoted as well. Otherwise simple use of the mean average can be used to lead people into false inferences, in this case that most people have a small amount of savings, when in all likelihood most people are actually in debt and a small number of people who have huge savings pull the mean average up above zero.
Cnut237 your observation is amazing. I totally agree with you! Most people are in debt, but with small people who have huge savings are rising the statistic over zero. Article
does not show how they get calculation, and what parameters they used for that.
Generally speaking majority of the people is in debt, there is no doubt in that. Is there a chance for that to be changed in the future? That`s the right question to ask here!
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