Spain | Looking at financial vulnerability beyond income

Summary

A year and a half after the pandemic began, the COVID-19 has highlighted the importance of households having the financial resilience to tackle the economic consequences of a scenario of high uncertainty.

Key points

• Key points:
• Household's ability to handle unexpected shocks can be found in its financial buffer and this reflects a major divide that exists among households in Spain.
• It is not only household income that determines such a division. This dichotomy also requires a household action plan on two key fronts: financial literacy and a rational evaluation of personal experiences.
• Households with better financial literacy—of both saving and investment—are less financially vulnerable.

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