Looking at the breakdown by instrument, in the first three quarters of last year households continued to increase their cash holdings and deposits at a good pace, with new investments in these liquid instruments amounting to € billion. By contrast, households divested € billion from other financial instruments. This may owe to the weak performance of financial markets in 2022. Lastly, repayments of outstanding debt increased over the course of 2022, driven by the repayment of loans for house purchase, possibly as a result of higher interest rates increasing the debt payments made by households with floating-rate loans. Some of those with surplus savings may have used part of these to pay down debt, at a time when high inflation is eroding the real value of cash holdings and deposits. To sum up, in 2020 the bulk of the savings built up – mainly by higher-income households – was put into liquid assets. In 2021, residential investment began to gain upward momentum, while a larger share of net financial asset acquisitions took the form of investment funds and cash holdings, and deposits represented a lower relative share. Lastly, in 2022 (albeit in the absence of data for the full year), the acquisition of financial assets declined as savings levels dropped. 3  Further, we will have to wait and see how investment decisions are affected by rising interest rates, both in terms of the type of financial product (investment funds, debt securities, etc.)
Since its launch, the Financial Education Plan has raised awareness of financial planning and encouraged households to treat savings as a fixed expense, helping them to build up a financial safety net based on what they can afford. Further, the plan also aims to teach the general public, and students in particular, to make responsible use of credit as and when it is needed, and to invest their savings based on sound risk assessments and in awareness of the risk-return trade-off. The Banco de España has redoubled its engagement in financial education, with recent structural changes aimed at reinforcing this function and helping the public to make better financial decisions, including when it comes to their savings and investments. In conclusion, Spanish households’ ability to appropriately manage their savings, based on informed decision-making, is a cornerstone of their financial health and, therefore, of stability for society at large. Thank you very much. 5