Citizens say high living costs hamper savings

AMMAN — The high cost of living has greatly affected the ability of Jordanians to save, say both experts and citizens.

The results of the Financial Inclusion Survey 2022 issued recently by the Central Bank of Jordan (CBJ) showed that the saving levels of Jordanians “15 years and over” decreased in official accounts from 9.35 per cent in 2017 to 4.35 per cent in 2022.

Economist Hosam Ayesh told the Jordan Times on Saturday that there is a “gap” between the typical Jordanian family’s income and their spending, which he attributed to the decline in savings in Jordan.

“Other reasons for the decline are high prices and costs, coupled with the increased inflation rate,” he said.

High taxes and fees are also to blame, he said, adding that some people prefer to save their financial surpluses in their homes, instead of the banks.

Aya Jamal, a private school teacher in Amman, said: “I can’t save money from my monthly salary because of the high cost of transportation and food; even rent is getting more expensive.”

“The problem is prices are increasing, but salaries are stagnant,” she added. 

Mohammad Ali, a salesman, agreed. “Living in Amman is expensive. My wife and I both work, paying almost all our money for rent, schools and other things. I wish we had more money to save,” Ali added.