Too optimistic to save

What’s Stopping Chileans from Saving

Saving money is important not only for long-term needs like retirement but also for expenses in the short term. This is because incomes and expenses are not always constant, and people can’t necessarily predict when they will need more cash. A reliable savings cushion is critical when people encounter large, unexpected costs or lose their job—financial “low points” that could happen to anyone at some time during their lives. Unfortunately, people with lower incomes who need savings the most often face greater challenges in the endeavor to set aside funds because they are more likely to have volatile incomes and experience financial setbacks. ….[READ]