- Savings and investment: a study analyzes habits in Argentina, Colombia, and Mexico
Savings and investment are considered pillars of economic development, but in Latin America, they face structural barriers such as low wages, lack of financial education, distrust in institutions, and unstable economic conditions.
A recent study conducted by Ualá and Trendsity, based on data from over 3,000 people in Argentina, Colombia, and Mexico, sheds light on the financial habits and perceptions of Latin Americans. In this article, we analyze these results, compare them with other regions, and explore the generational differences revealed.
Savings and investment in Latin America
The report shows that:
- 73% of Latin Americans value monthly savings,
- 74% see investment as a key tool for the future.
However, 44% of respondents currently do not save or invest. Misinformation, fear, and lack of resources are determining factors.
Main obstacles identified:
Financial myths
- 48% believe that investments only generate returns in the very long term.
Distrust
- 33% consider that the only safe investment is buying dollars.
- 36% think a financial advisor is needed to invest.
“Prejudices and myths are largely explained by the lack of financial education in the region,” says Mariela Mociulsky, CEO of Trendsity.
Global comparison: Latin America vs. Europe
More than 80% of Spanish savers and investors do not set financial goals or plan their investments, according to a 2024 JP Morgan Asset Management survey. Of the 1,300 people surveyed by the international investment firm, only 18% set a specific goal for their savings and investments and plan how to achieve it. Up to 40% of people with some type of investment product in Spain value not losing the money invested, while 29% aim for higher returns.
But on average, here are the comparative rates between regions:
Savings and investment rates
| Country/Region | Savings Rate (% of GDP) | Average Investment per Person (USD) |
|---|---|---|
| Argentina | 17.8% | 3,400 |
| Colombia | 22.3% | 4,200 |
| Mexico | 23.1% | 5,100 |
| Europe (average) | 25-30% | 8,000 – 15,000 |
In Europe, the average savings rate ranges from 25% to 30% of GDP, while in Latin America, it varies from 17% to 23%. Greater economic stability, higher income capacity, consolidated regulations, and financial systems explain this difference.
Savings and investment: generational analysis
Generation Z (18-25 years)
- Preferences: Intensive use of fintechs and cryptocurrencies.
- Main motivation: Generate quick returns.
- Challenge: Lack of knowledge and long-term planning.
Millennials (26-40 years)
- Preferences: Investment funds and real estate.
- Main motivation: Wealth creation.
- Challenge: Debt and pressure to maintain expensive lifestyles.
Generation X and baby boomers (41-65+ years)
- Preferences: Safe investments like bonds and fixed-term deposits.
- Main motivation: Ensuring a comfortable retirement.
- Challenge: Resistance to new financial technologies.
Opportunities for the Financial Sector
“Providing the necessary resources to make informed decisions is key,” says Pablo Savoldelli, Director of Wealth Management at Ualá.
- Personalized financial education: Create training programs targeted at different generations.
- Innovation in financial products: Develop accessible, low-cost investment instruments.
- Trust-based marketing: Strengthen institutional image with transparency and performance data.
Latin America faces a crucial challenge: transforming the financial culture through education and inclusive access to investment instruments. While distrust and lack of knowledge remain significant barriers, interest in learning and participating in the financial market is growing, especially among younger generations. The financial sector and fintechs have a unique opportunity to lead this change and solidify their presence in an emerging market with significant growth potential.
