Why World Savings Day 2025 is Special

Initiated by banks, World Savings Day is being celebrated for the 100th time today. Savings products remain the number one investment choice in Austria. Not even the low-interest phase from 2008 to 2022 has diminished the popularity of saving in Austria. However, in recent years and decades, new investment products such as stocks, funds, exchange-traded funds (ETFs), and crypto-assets have increasingly gained importance.

History of World Savings Day

World Savings Day was established at the first international savings bank congress in Milan in October 1924, where the World Savings and Retail Banking Institute (WSBI) was also founded. The founding initiative involved 29 countries from around the world, including Austria. The goal was to familiarize the population with financial management and motivate them to save - especially workers and the middle class were to be enticed with the idea of investing money and building a small fortune. The annual event was celebrated for the first time a year later, on October 30, 1925.

The initiative really gained momentum in the 1950s, after the population and economy had somewhat recovered from the shock of World War II. Austrian saving culture at that time was especially boosted by the introduction of school and youth savings in 1949, as well as by numerous newly founded savings clubs, according to a blog post on World Savings Day by the National Library (ONB).

"Sparefroh" and "Sumsi"

In the mid-1950s, the mascot "Sparefroh" provided further revitalization of World Savings Day. It was intended to teach the value of saving not only to children but especially to them. The advertising figure originally came from the German Savings Bank Publishing House but gained greater fame in Austria than in Germany. Today, "Sparefroh" is used by the Erste Group. Other banking associations followed in the coming years with advertising figures for saving. For example, in the 1960s, the Raiffeisen banks in Germany, Austria, Switzerland, and other countries introduced the bee "Sumsi".

With the advertising figures came the traditional World Savings Day gifts. In recent decades, everything from classic children's gifts like stuffed animals, pens, pads, and games to keychains and corkscrews for adults has been included.

Peak Phase of World Savings Day

The peak of World Savings Day in Austria was reached in the 1970s, and its popularity among local savers remained high until the end of the 20th century. In many other countries that were involved in its founding, World Savings Day has almost completely disappeared, but in Austria, the day is still upheld and promoted by banks.

However, its great significance has declined in recent decades against the backdrop of financial crises and later the Corona crisis, as well as the increasing digitalization of banking in Austria. Most banks now observe the day with significantly less effort - instead, the phase of World Savings Day activities extends over several days. However, children still receive small gifts every year. Old World Savings gifts and the development of the "Sparefroh" can also be admired in a museum in Vienna - specifically in the Sparefroh House in the Alsergrund District Museum. World Savings gifts have been on display there since 1957.

Higher Savings Amount

Austrians are traditionally big savers. In light of ongoing economic uncertainties, more money has recently been set aside again. The average monthly savings amount increased from 308 euros in 2024 to 320 euros this year, according to a recent study by Erste Bank on the occasion of World Savings Day on October 31. The classic savings account thus remains firmly anchored in the local savings culture, although alternatives like stocks are gaining importance.

The fact that Austrians continue to place great value on their financial cushion is also evident from the high savings rate, which is traditionally significantly higher here than in the Eurozone. According to forecasts, the rate is expected to slightly decline in 2025, but from a high level: in 2024, the savings rate increased from 8.6 to 11.7 percent according to Statistics Austria. In absolute terms, private households set aside a total of around 34 billion euros in 2024 - an increase of 46 percent compared to 2023 (23.3 billion euros), as Erste Bank writes.

Stocks, Gold, Cryptocurrencies

How people invest their money is undergoing a change. Although the classic savings account is still not obsolete - according to the study, the savings account remains relevant across all age groups - more and more people are turning to alternative forms of investment such as stocks, gold, or cryptocurrencies. For example, 38 percent of respondents now invest in stocks, which is 10 percentage points more than ten years ago.

(APA/Red)

This article has been automatically translated, read the original article here.