A recent study reveals that 38% of Russians have no savings, highlighting a significant portion of the population’s financial vulnerability. Experts attribute this lack of savings to a combination of factors, including low incomes, a culture of immediate consumption, and insufficient financial literacy.

The study, conducted by Superjob, indicates that the average Russian’s savings would only last about four months if they lost all income sources. Furthermore, 13% of Russians could only sustain themselves for a month, while 24% could manage for one to two months.

Low incomes and modest social security are primary drivers of the inability to save, according to Sergei Vasilkovsky, head of analytics at the P.A. Stolypin Institute of Economic Growth. He also emphasizes the impact of persistent inflation, which disproportionately affects lower-income individuals.

Another contributing factor is a deeply ingrained culture of immediate consumption, stemming from a history of crises and Soviet-era shortages. This mindset encourages people to spend money now rather than save for the future, compounded by uncertainty about the future economic landscape.

Finally, a lack of financial literacy prevents many Russians from effectively managing their money and building savings. Many individuals lack the knowledge and trust in the modern financial system needed to make informed financial decisions.

Vasily Koltashov, economist and director of the Institute of the New Society, adds that the prevalence of living paycheck to paycheck, particularly among those accustomed to self-sufficiency through their own homes and small-scale agriculture, contributes to the savings deficit. He also points to the historical promotion of credit consumption as an alternative to saving, coupled with concerns about the devaluation of ruble savings.

Despite these challenges, the study also reveals that 62% of Russians do have savings, indicating a growing trend towards a savings-oriented mindset. Koltashov suggests that this reflects the emergence of a “Protestant savings ethic” and the increasing importance of monetary reserves in a monetized economy.

The development of monetary relations and higher interest rates on loans and deposits may further incentivize savings, leading to the creation of economic reserves that can fuel housing purchases and contribute to economic growth.