Saving is one of the most prominent social behaviors with economic and social implications in various societies, given its paramount importance to the future of society’s members in general, The culture of saving is largely underdeveloped among all members of Saudi society, unlike in other societies where saving is considered one of the most important mechanisms for setting aside the necessary funds to support themselves in the future.

According to the latest statistics, the percentage of annual income saved by Saudi households is approximately 2.4%, while the global average is at least 10%. Unfortunately, many families in the Kingdom save money not to use it for basic necessities—such as purchasing real estate, land, or starting a business—but rather for consumer spending, which is usually tied to the summer vacation period, such as traveling abroad or going on vacation. This explains the decline in long-term bank deposits at our banks.

Certainly, this is a misguided approach to the concept of a savings culture, as it strips it of its long-term goals; most Saudi families link their savings to short-term consumption, without considering future circumstances and fluctuations.Members of Saudi society must understand that saving, in its modern and evolved sense, is meant to be used to purchase what will benefit all family members in the future, such as investing in real estate, a plot of land, or a business venture, rather than spending on consumer goods, tourist trips, or home furnishings.

For example, many European and Asian families have a sophisticated approach to the culture of saving; they set aside a fixed portion of their monthly income,  to deposit it into a long-term savings account, with the intention of investing it in real estate, a plot of land, or starting a business. In other words, these savings are spent on projects that benefit all family members and help them cope with future circumstances; this is the optimal approach to saving that members of our society must understand.

I believe that raising proper awareness about the concept of saving to purchase real estate or start a business is the responsibility of several entities, including chambers of commerce, media outlets, civil society organizations, and consumer protection associations and agencies.

All of these entities must play their part in educating the public about the correct concept of saving, as it is one of the objectives of the Kingdom’s Vision 2030 because it is considered one of the most prominent sources of innovative income.