A report by EsadeEcPol and FNF reveals that 48.5% of young Spaniards aged 18 to 35 consider their long-term saving capacity to be deficient. In the tenth episode of "Economy for Gen Z," a podcast about investment, saving, and finances for young people in collaboration with Banco Santander, entrepreneur and author of Financial Education, Amalia Guerrero, provides tips for managing the leftover money at the end of the month.
Amalia emphasizes the importance of creating a detailed budget that accurately reflects all income and expenses, as this can make the difference between saving or not and having the ability to go on vacation. According to Guerrero, planning and managing even the most scarce resources is crucial for later thinking about investing wisely. Furthermore, she stresses the need to beat inflation in the long term through investment.
In previous episodes of the podcast, economist José Ignacio Conde-Ruiz discussed the importance of starting to invest from the first salary, taking advantage of compound interest over time. It was mentioned that allocating around 10% of the budget to these investments can make a long-term difference.
Experts also highlight the importance of being consistent in contributions to investments, preferably in an automatic manner, to take advantage of future savings growth. It is essential to continue educating oneself in the financial field to choose the best investment options according to one’s personal risk profile.
It is noted that not everyone is prepared to invest in all financial products, making it crucial to assess the level of risk one is willing to take. Amalia Guerrero emphasizes that combining compound interest with small periodic contributions can be key to achieving long-term results.
Financial education is presented as the fundamental basis for making sound decisions regarding investment and savings, which can make a difference in the future saving capacity and economic growth of young Spaniards.
