Dutch refusing to tap into savings

Piggy Bank (Picture: Wikimedia Commons/401(K) 2012)Piggy Bank (Picture: Wikimedia Commons/401(K) 2012)

Dutch consumers are very cautious when it comes to using their savings, even when it is more rational to use their savings to pay off debts.

This is according to research done by Nibud into financial behavior and psychological principles in practice. The study will be presented today.

The study shows that 17 percent of Dutch consumers have both savings and loans. Three in five of these people do not want to use their savings to pay off the loan, even if it is cheaper to do so in the long run.

People with an overdraft are also hesitant to use their savings to pay for it. As many as 40 percent of people would rather remain in the red for a short time than dip into their savings. Half of all households sometimes have to use their overdrafts, and a quarter of them indicated that they need the overdraft to get by.

The study also reveals that Dutch consumers find it worse to lose than they like gaining. Consumers will often put in more effort to prevent a loss than they would to gain something.