The Bank of Albania, in a special survey on the financial culture of Albanians, stated that the establishments of long-term financial objectives, as well as the continuity and sustainability of active efforts to fulfill them, are another important component of financial behavior.
To understand this issue, the most used exhausting questions are: What is your most important financial target now? “and” What are you doing to accomplish this objective? ”
The data show that only 44% of respondents have long-term financial targets. 49% of these have school as a saving’s target. About 29.8% have long-term savings’ targets for children’s education. Further 11.9% save to improve living standards, 9.9% to buy a car and 6.6% to help their children financially.
Housing adjustment stimulates 5.7% of the savers and so is the purchase of a new home.
Also, in smaller proportions, Albanians tend to save on their wedding or children’s wedding, to expand business, loan paying, or travelling.
Ways to Save
Asked what actions have been taken to meet their financial objectives, 22% have responded that they have reduced spending, 13% have saved or invested and 7% of them has prepared an action plan.
An important issue is the fact that only 4% of respondents who have financial targets have found a way to take a loan, and 1% have used loan taking for meeting the objectives in question.