Description

Regular saving is recognized as a sound financial practice that benefits both the individual and the society at large. This paper provides empirical data on the prevalence of this practice is in Chile, reaching the preliminary conclusion that indicators ar e comparatively low. The paper then analyzes the public policy implications of this state of affairs. From that perspective, it examines the relationship between the practice of regular saving as an indicator of the households’ disposition to financial is sues and their repayment behavior. The evidence found is generally consistent with the presence of a positive relationship between the two variables, after controlling for the level of disposable income and other factors. Based on these results, the paper makes several policy recommendations