The house takes most of our salary. There are no surprises in this regard considering that the average rent in Spain is around 850 USD (data extracted from the Good Finance portal) and the most frequent gross salary is about 16,500 USD per year, that is, 1,375 USD per year. month if we divide it into twelve payments ( data relative to 2015).
Supplies take between 25 and 30% of the total destined for consumption
Household and supplies take between 25 and 30% of the total destined for consumption in family groups with age ranges below 30 years, between 30 and 44 years and between 45 and 59 years. In the case of families over 60 years, the game is even greater, of just over 35% of the total expenditure. This follows from a study published this year by Honest Bank and the Good Lender Financial Studies with data relating to 2015.
According to this same analysis, food and consumption of non-alcoholic beverages, hotels and restaurants, and transportation are the other three items to which more Spanish families devote more money. The cost of transportation and hotels and restaurants is lower in the family centers of more than 60 years than in the rest; however, the feeding item has a higher weight in this segment.
Leisure and clothing are also important for families of all age groups. On the contrary, alcoholic beverages and tobacco, health, communications and education are the ones that take less money. In the case of education and health, the low weight they have on the family budget could be due to the fact that both services are public in Spain.
The study points to a series of conclusions regarding the changes in the consumption pattern of Spaniards between 2005 and 2015. Among the most prominent: a “sharp drop” in food and beverage items, and tobacco and alcoholic beverages; “A tendency of generalized reduction in all age cohorts” in terms of clothing is maintained; and, finally, education spending hardly increases among the age segments in which children are had , something that only occurs in Spain among the countries analyzed (Germany, United Kingdom, Spain, Japan and China).
And how do we save?
Now that we’ve seen what we spend the money on, let’s see how we do the opposite, save it. As usual, most of the families’ financial assets were in the first quarter of 2017 (last period analyzed by the Bank of Spain) in cash and deposits , specifically 40% of the total. 26% of the assets were in equity interests; 17%, in insurance and pension funds; 13%, in investment funds, and 4%, in other assets. Although the weight of cash and deposits continues to be high, in the last year its importance has decreased by 1.7 percentage points, while investment funds have improved 1.1 percentage points.
Importance of deposits in households continues despite their low profitability
Surprisingly, the importance of deposits in households continues despite their low profitability: 0.04% on average in sight accounts and 0.11% in time deposits. Be that as it may, the most conservative savers who continue to rely on these savings products can scratch a return of up to 5% APR with the best paid accounts on the market and 2% with the best fixed terms available today. Of course, in many cases with limitations such as low salary maximum balances, commissions, very short deadlines or various linking requirements, they indicate from the comparator.