Household Financial Savings
Net financial wealth of households touched all-time high in Q1 FY25
Motilal Oswal report shows assets have grown at a faster pace since the pandemic
 "Net financial wealth of households touched all-time high in Q1 FY25")
87% of Indians believe increased financial uncertainty in 5 years: Report
Currently, family expenses, with an uncertainty score of 78, are the biggest concern among Indians, followed by health and life-related worries
 "87% of Indians believe increased financial uncertainty in 5 years: Report")
77% low-income households saw no income increase in the past 5 yrs: Report
A Redseer survey on low to middle income households found that 65% respondents relied on family and friends for financial support, citing medical emergencies as a major cause for savings depletion
 "77% low-income households saw no income increase in the past 5 yrs: Report")
Nuances of household savings
If corporate investment starts rising, pushing the investment rate (as a percentage of GDP) higher, low NFS will be hard to ignore and likely to hamper a balanced surge in growth
 "Nuances of household savings")
Household debt registered new high by Q3FY24, savings plummeted: Report
A report by Motilal Oswal said that households' net savings plummeted to a six-year low level of 18.4 per cent of GDP
 "Household debt registered new high by Q3FY24, savings plummeted: Report")
Statsguru: Six charts explain the cost of lower financial savings
Households are said to have borrowed more to increase consumption
 "Statsguru: Six charts explain the cost of lower financial savings")
Savings declined but resulted in rise in assets: SBI chief economist
Recovery in real estate, rise in property prices attracted savings
 "Savings declined but resulted in rise in assets: SBI chief economist")
Indian households outdo emerging market peers on cutting debt levels
Only one among BRIC countries to have cut leverage to levels to pre-pandemic levels
 "Indian households outdo emerging market peers on cutting debt levels")
Beginners may opt for 50:30:20 strategy for simplifying budgeting
Evolved users should opt for the traditional approach of tracking expenses and eliminating frivolous ones
 "Beginners may opt for 50:30:20 strategy for simplifying budgeting")
Household balance sheet
Lower consumption at the bottom of the pyramid will affect growth
 "Household balance sheet")
Rising inflation risk
Ignoring it for long could increase longer-term costs
 "Rising inflation risk")
Household financial savings improve on sharp decline in borrowings: RBI
Savings more precautionary than productive, consumer demand unlikely to improve soon
 "Household financial savings improve on sharp decline in borrowings: RBI")
Forced savings rise as Indians uncertain about spending amid Covid-19: UBS
India's gross savings fell to 29 per cent of GDP in FY20 as per UBS' estimates from 34.6 per cent of GDP in FY12
 "Forced savings rise as Indians uncertain about spending amid Covid-19: UBS")
Household financial savings climb to 7-year high, says RBI report
However, much of this increase was in the form of cash
 "Household financial savings climb to 7-year high, says RBI report")
