7 in 10 People in UAE Don't Know How to Save Money: Survey

Published November 7th, 2017 - 04:00 GMT
The nature of life in the UAE is making it hard for residents to think about saving money, according to a new survey. (File photo)
The nature of life in the UAE is making it hard for residents to think about saving money, according to a new survey. (File photo)

UAE residents are failing to save money and achieve their financial goals because they are not sure of what to do to manage their income more effectively, according to a new survey.

In a survey conducted by National Bonds among residents across nationalities in the country, it was found that about seven in ten people (69 per cent) are not aware about the steps they need to take in order to achieve their ambitions in life, be it to buy a home, send their children to college or retire comfortably.

In Payfort’s separate research, it was found that almost three in ten (27.8 per cent) residents in the country are not able to save any money at all.

The majority (38 per cent) do manage to set aside some funds for the rainy days, but they’re only able to save 10 per cent of their income per month.

And it looks like high debt levels are proving to be a hindrance for many residents to achieving their financial goals, with more than half (57 per cent) of people in the UAE, the third-highest in the region, admitting that they have some loans to pay.

However, according to National Bonds, it is the transient nature of life in the emirates that is making it easy for residents to forget about saving money.

“Lured by the tax-free salaries, many expatriates move with every intention of putting money away each month, but as with all good intentions, this is often quickly replaced by the desire to enjoy everything the market has to offer.”

The results of the study have raised some concerns, especially since retirement planning and saving money are some of the key priorities that income earners should be focusing on. With that in in mind, National Bonds announced on Monday that it is conducting a nationwide campaign called The Savings Excuse.

The campaign seeks to help UAE residents achieve their life’s money goals, and at the same time, find out and address the problems that are preventing them from setting aside a portion of their income.

Under the campaign, residents are encouraged to open up in social media about their “financial excuses” using the hashtag #SavingsExcuse. So, whether it is spending too much money on weekday takeaways or those must-have manicures, National Bonds said it wishes to alert the public to the common challenges to saving in the UAE.

“We have long supported the government’s ambition to increase financial literacy and savings to achieve a healthy and secured financial future for individuals and their families,”said Mohammed Qasim Al Ali, CEO of National Bonds. “Most people know they should be saving, the hard part is knowing where to start.”

“The Savings Excuse campaign will help people identify what exactly it is that prevents them from putting money aside and help them realize, even the smallest change in spending habits can help achieve financial stability in the long term”, he added.

By Cleofe Maceda

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