Saving for big purchases is far from a unique challenge—if you’ve ever struggled to set money aside to buy a home or car, support your family abroad, or prepare for an investment, you’re not alone. All over the world people face similar struggles, and saving habits across countries vary significantly due to cultural, economic, and financial factors.
That’s why we’ve created this guide at Remitly—to show you how people approach savings, from the tools they use to their unique habits and planning methods. We’ll give you some practical tips to choose strategies that work best, especially if you’re supporting family or investing overseas.
Why do saving patterns differ across countries and economies?
Saving patterns differ because economic and cultural environments strongly shape how people manage their money. Inflation, interest rates, and wages all influence how much households can realistically put aside.
In countries with high inflation, savings lose value quickly, so people often invest in property or gold instead of keeping money in the bank. In contrast, where wages are stable and financial systems are strong, families tend to feel more confident saving for the long term.
Generational differences too
Cultural traditions also play a major role in savings habits. In some societies, younger generations often support aging parents, making savings less about personal goals and more about family responsibilities. In countries with stronger social security systems, people may save less for relatives and focus instead on milestones like buying a home or funding retirement.
There’s no better example of this contrast than comparing high-savings countries like China, where families often save for education, healthcare, and multi-generation needs, to the US, where savings rates are lower and consumer spending is more common. These differences highlight how both cultural expectations and economic realities shape saving habits around the world.
Top money-saving tools to manage your finances
Before diving into saving habits around the world, let’s check out some of the top tools you can use to save money.
Bank accounts and financial products
Traditional bank accounts are still a key way to save, though the options vary by country. In the UK, Individual Savings Accounts (ISAs) let people save tax-free, making them a favorite for long-term goals. In the US, Certificates of Deposit (CDs) offer fixed interest rates and a secure way to grow money over a set period.
Beyond banks, digital budgeting tools like Credit Karma in the US or YNAB, (You Need a Budget) used internationally, help people track expenses, set goals, and boost their savings more effectively.
Remittance solutions
For many people, saving is also about supporting their family abroad. That’s why affordable and reliable remittance services are essential for international money transfers. They ensure money reaches your loved ones without being drained by high fees.
Services like Remitly offer competitive exchange rates, transparent pricing, and faster delivery, giving you peace of mind that any savings you send home have the biggest impact. If your family relies on regular transfers, a reliable remittance option can be as vital as a traditional savings account.
Investment tools
Investments are another useful way to grow your savings. In India, mutual funds are a trusted choice for long-term savings, offering relatively low entry costs so they’re quite accessible to people. In Japan, stock-based savings programs like NISA (Nippon Individual Savings Account) encourage households to invest directly in the market while enjoying tax advantages.
These examples show how local systems shape the way people save for the future, but also highlight the pretty much universal goal of protecting and putting money aside over time.
Cultural saving methods around the world
Now that you’re familiar with some of the main money-saving tools, let’s have a look at the different ways people save money around the globe.
Asia
In Japan, households often use a method called “kakeibo” budgeting, where they divide income into envelopes for different spending categories. This makes saving more intentional and helps families stay organized with their money.
In China, the tradition of giving hongbao, red envelopes given during Lunar New Year or special occasions, isn’t just about gifting money. Families often set aside a portion of these funds for education or future needs, teaching children the value of saving from an early age.
Europe
In many Nordic countries, people practice “sinking” funds, setting aside money for specific future expenses like vacations, car repairs, or holidays. Instead of dipping into emergency savings or relying on credit, each goal has its own dedicated fund.
This approach emphasizes planning ahead and avoiding unnecessary debt, with the plan being for families to be ready for big expenses without financial stress.
Latin America
In Mexico and other parts of Latin America, “tandas,” informal community saving pools, are a popular way to save. A group of people contributes a fixed amount regularly, and each member takes turns receiving the total pot.
This collective system builds trust, keeps people accountable, and helps members reach financial goals faster. This could be paying for education, covering medical expenses, or starting a business.
Africa
Across Africa, Rotating Savings and Credit Associations (ROSCAs) are a key part of community finance. Members pool money and take turns receiving a lump sum, often for big expenses like school fees, weddings, or even launching a business.
In South Africa, these groups are known as “Stokvels,” where members save not just for personal needs, but also collective goals like funerals or community projects. In Kenya, “chamas” serve a similar purpose, helping women entrepreneurs in particular to access capital when banks are out of reach.
Many groups also use mobile money platforms like M-Pesa to collect and distribute funds securely, blending tradition with technology. ROSCAs and their variations offer more than financial support; they strengthen social bonds and create a safety net for members.
How to plan for big purchases overseas
With those different cultural saving methods in mind, let’s explore some tips for planning big purchases abroad.
Track currency exchange rates
Even small changes in exchange rates can impact how much your money is worth abroad. Planning your transfers carefully can help you get fair rates and avoid extra fees.
Plan for taxes and unforeseen legal fees
Buying property or investing abroad often comes with extra costs that differ from country to country and can add up quickly. Talking to local experts or financial advisors can help you avoid surprises.
Research local living conditions and financial barriers
Look into average expenses, housing costs, and the banking access situation at your destination so you can understand the full picture before committing.
Understand local banking rules
Some countries have limits of foreign account ownership or strict transfer regulations. Knowing the rules in advance can save you time, money, and stress.
Factor in long-term maintenance costs
Beyond the initial purchase, recurring expenses like property upkeep, insurance, and local service fees can add up. Planning ahead for these helps you stay on top of your budget.
Actionable tips to start saving today
No matter where you live or what you’re saving for, these tips can help make saving simpler and more manageable:
- Automate your savings contributions
Set up automatic money transfers to a dedicated savings account so you don’t have to rely on willpower. Even small amounts grow over time when you’re consistent. - Separate savings for big purchases from everyday expenses
Keep your money in different accounts, like one for bills and groceries and another for travel or a down-payment. This helps you avoid dipping into long-term savings. - Set clear goals with realistic timelines
Instead of vague goals like “I want to save more,” consider something specific like “I’ll save $200 a month for the next 12 months.” Breaking it down into fixed, regular amounts keeps you motivated and focused. - Start small and build momentum
Small changes can make a big difference. Skipping one takeout meal or rounding up your purchases can steadily grow your savings over time. - Track your spending regularly
Use apps or even a simple notebook to see where your money goes. Spotting patterns makes it easier to cut back on non-essentials and put more towards your savings goals. - Build an emergency fund first
Before going after bigger goals like buying a home or investing abroad, be sure to have a safety net for unexpected expenses. This protects your progress and keeps financial stress at bay. - Reward yourself for milestones
Saving doesn’t have to feel like a grind. Celebrate when you reach key targets, like three months of expenses saved, or your first $1,000. Small rewards help you stay motivated over the long haul.
Make your savings work for you
Understanding how culture, the economy, and local financial systems shape global saving habits can help you figure out what works best for you. By using practical tools and smart habits, you can save for big goals, whether at home or abroad.
Digital budgeting apps, investment accounts like ISAs and NISAs, or mutual funds, and reliable remittance services like Remitly can help you manage, grow, and transfer your money efficiently.
The trick is choosing methods that fit your goals, lifestyle, and finances. With careful overseas savings planning, consistent habits, and the right tools, your biggest dream isn’t just possible, it’s within your reach.
FAQs
How can I save for long-term goals when living in a high-inflation country?
Invest in assets that hold value, like real estate, gold, or inflation-protected bonds. You can also diversify across stable currencies or digital investment platforms to protect your savings from sudden drops. Combining safe options with strategic investments helps your money grow over time.
Can technology help me save more across borders?
Yes. Apps, digital wallets, and fintech tools let you automate transfers, set savings goals, and monitor your progress. Some platforms even alert you to favorable exchange rates, helping you make the most of your money without having to check on it constantly yourself.
Are there specific apps for saving money for international purposes?
Digital apps like Remitly make managing international transactions simple, letting you hold multiple currencies and avoid high conversion fees. These apps work well alongside budgeting tools to plan and save effectively.
How should I adjust my savings plan when planning big overseas purchases?
Pay attention to currency fluctuations, local taxes, and legal rules like foreign account limits. Planning ahead helps you budget accurately and make the most of your money.
What are the most common mistakes people make when sending money to family abroad?
Common mistakes include poor timing and using insecure channels. Compare providers, plan transfers in advance, and use trusted services like Remitly for international transfers.