From Investment to Protection.. A Striking Shift in Jordanian Saving Culture

Mansur explained that families are now facing needs that were not previously considered essential, such as owning a car and providing a mobile phone for each individual, in addition to education and communication requirements, which has led to increased spending.

He believed that improving public transport and basic services could contribute to reducing a portion of expenses, thereby creating more room for saving.

Regarding the extent of the decline in families' saving capacity, Mansur said: "He does not have an exact figure, but he noted that bank savings remain large, considering that the high volume of deposits reflects the existence of saving capacity among a segment of society."

Mansur emphasized that the challenge is not only related to the volume of savings, but rather to how they are utilized so that they transform into loans and investments that contribute to stimulating economic activity.

He pointed out that the relationship between saving and spending carries a kind of economic paradox; high saving means lower spending, which may weaken demand for goods and services and affect economic activity, whereas increased spending stimulates demand and growth.

He noted that the economy needs a balance between saving and consumption, saying that "the best of matters is the middle way," especially since families need reserve funds to face emergency conditions, while the economy needs sustained domestic demand.

For his part, financial consultant Ibrahim Bashayreh believes that saving is still possible for Jordanian families, but it is no longer easy or automatic. Instead, it requires clear financial planning, spending control, and sacrifices in some non-essential expenses.

Bashayreh pointed out that the ability to save is concentrated to a greater extent in middle- and high-income families or those with multiple sources of income, indicating that the concept of saving itself has changed; it is no longer necessarily about deducting a large amount from income, but can start with small amounts accumulated gradually, then invested in small assets to preserve their value, such as gold or silver.

He added that the rising cost of living, rents, loan installments, and interest, along with changing lifestyles, has made the task of saving more difficult, especially with some expenses that were once considered luxuries turning into semi-essential needs, such as communications, technology, and educational requirements.

According to Bashayreh, paying off high-interest debts should be a priority, especially credit cards and high-cost personal loans, but this does not mean eliminating saving entirely. He advises keeping a small emergency fund to avoid resorting to borrowing again when a sudden circumstance arises.

Bashayreh identified several mistakes that hinder families' ability to save, most notably waiting until the end of the month to save whatever is left of the income, explaining that the best approach is to deduct the savings amount first, and then organize expenses according to the remaining amount.

He also warned against overusing installment purchases and credit cards, alongside confusing needs with wants, which can lead to a gradual inflation of expenses.

He noted that the saving culture among Jordanians has witnessed a noticeable change, shifting from saving for investment purposes to precautionary saving linked to protection from crises and emergencies, concurrently with an increased interest in gold and rising financial awareness among youth.

While families need to save to protect themselves from surprises, the economy in turn needs spending to drive demand and growth, making the balance between saving and consumption a shared necessity.

In light of rising obligations, saving today may not be about the ability to provide large sums, as much as it is about the family's ability to allocate a small, regular amount to protect itself from the future. Even a limited amount, if accumulated over time, can form a safety margin that helps the family face emergencies and reduces its need to borrow.