Savings come before consumption

The importance of planning savings was highlighted by Miguel Ferreira, Professor of Finance at Nova SBE. He advised that savings should not be made with what is left over at the end of the month, after consumption. "Savings should be made at the beginning of the month, allocating a certain percentage of income, with 20% usually recommended, if possible, for savings, which should be correctly invested according to the objectives, which are usually long-term,” said Miguel Ferreira, at the round table on the Impact of Savings and Investment, of the 13th edition of the Great Conference The Future of Financial Markets, organized by Negócios and Banco Carregosa, with the support of ISCTE Business School. He also mentioned that the younger generation, up to the age of 35, is above the European average in terms of higher education. "This represents a very significant change. This generation has much higher levels of qualification, including financial literacy. I think there are greater financial skills and knowledge, which are fundamental for making well-informed and correct decisions in terms of savings, investment and the importance of planning savings,” said Miguel Ferreira.

The new generations were also highlighted by João Queiroz, head of Trading at Banco Carregosa, due to changes in behavior. In terms of professional careers, there is greater mobility, with people jumping careers and employers more often, so "they have to have a safe haven which won't just be their parents' house or the house they live in with their partners, but also financial stability. This stability is divided into investments in assets such as real estate, short-term debt and, in the long term, shares, funds and ETFs.” These portfolios "are not just focused on capital protection and traditional bank deposits,” said João Queiroz.

Investment is not a bet