Class C: number of families without money saved drops from 61% to 29%

The share of class C families without any financial reserves fell from 61% (in 2016) to 29% (this year), as revealed in a survey released this Monday (6) by the Locomotiva Institute.

Although more Brazilians in this segment have managed to save money, organizing their budget still represents a challenge for a large part of this public.

The survey shows, for example, that currently only 40% of Brazilians in this economic class end the month with money available after paying their bills.

According to the president of the institute, Renato Meirelles, having some reserve, no matter how small, is essential, as it allows us to stop improvising and makes it possible to plan.

"Those who live from bill to bill are stuck with today's logic. That's what happens to a large part of class C: almost half pay all the bills and have nothing left at the end of the month."

Intention to invest

Data from the survey with class C also shows that people's intention to invest in shares or funds tripled in a decade, going from 17% to 51%.

The online quantitative study interviewed 2,006 internet users aged 18 or over across the country.

Meirelles, who is the author of the book Brasil da Maioria: 25 anos de Classe C, states that there are changes in the relationship between this segment and the economy. Class C brings together more than 107 million Brazilians.

"In 10 years, class C gained a financial repertoire. Investment, insurance and pensions were no longer seen as something for the rich and became part of the plans of this majority. It is a more informed and more demanding relationship with money", says Meirelles, who will launch the new work at Livraria da Vila, in São Paulo, on Wednesday (11).

The survey also shows that 32% intend to take out life insurance, 30% plan to buy car insurance and 26% show their intention to take out a private pension plan.

Concern

The search for financial security is reflected in the priorities of this segment. For 71% of Brazilians in class C, having money saved to face unforeseen events is more important than maintaining a high standard of living. 35% consider financial independence to be the main achievement in feeling like they have succeeded in life.

At least 88% say they try to organize themselves financially, but find it difficult to manage resources. Furthermore, 86% say they are constantly worried about money, while 78% admit they avoid thinking about their own financial situation.

For Renato Meirelles, the pandemic accelerated the “banking” of class C.

“Emergency aid and fintechs opened a door that traditional banks were slow to open: account via cell phone, without queues and without the branch’s revolving door blocking anyone from entering.”

As the researcher observes, class C's horizons expanded, even though there was no money left: "The future entered the account. Today, taking care of money involves plans for the coming years: protecting the family, creating a reserve and preparing for retirement", he highlights.