Household savings in Spain: the average misleads and debt wipes it out
Only 17.7% of Spanish families have more than 100,000 euros in the bank. The average is misleading: debts and other assets change the picture of household savings.
English · Original discussion in Spanish · Published
Household savings in Spain: the average misleads and debt wipes it out
How much does the average Spanish family have in savings? The answer depends on what you count. Data from the CIS (Spain's official sociological research centre) show that only 17.7% of households have more than 100,000 euros in the bank. But savings are not just that: debts must be subtracted and other assets added.
The average is a trap. Savings are so unevenly distributed that a few people with million-euro deposits push up the average while most families live on the bare minimum. The median would be far more useful, but it is not published. And the CIS only measures deposits, not net wealth.
The definition of savings is an open debate: some people have 10,000 euros in the bank but owe 90,000; their net worth is negative. Others, with interest rates at 0%, chose to run down their savings rather than pay interest. And there are those who hold wealth in shares, crypto or metals, which official statistics do not see.
The question remains open: because net savings, the figure that really matters, is not published in any survey. The 100,000-euro figure sounds good, but for most people it is a mirage. Until net wealth is measured, the average will keep lying to us.
How much does the average Spanish family have in savings? The answer depends on what you count. Data from the CIS (Spain's official sociological research centre) show that only 17.7% of households have more than 100,000 euros in the bank. But savings are not just that: debts must be subtracted and other assets added.
The average is a trap. Savings are so unevenly distributed that a few people with million-euro deposits push up the average while most families live on the bare minimum. The median would be far more useful, but it is not published. And the CIS only measures deposits, not net wealth.
The definition of savings is an open debate: some people have 10,000 euros in the bank but owe 90,000; their net worth is negative. Others, with interest rates at 0%, chose to run down their savings rather than pay interest. And there are those who hold wealth in shares, crypto or metals, which official statistics do not see.
The question remains open: because net savings, the figure that really matters, is not published in any survey. The 100,000-euro figure sounds good, but for most people it is a mirage. Until net wealth is measured, the average will keep lying to us.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (13 replies).
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