Quick takeaways

• Households have been borrowing at a faster pace than they have been saving since the Covid-19 pandemic. As a result, ‘net’ household financial savings (gross financial savings adjusted for liabilities) have fallen, government data up to fiscal 2023 shows
• The rising proclivity for debt among households is fanned by a clutch of tailwinds — a retail credit push by lenders, greater appetite for borrowings, especially among the young, and improved access to lenders owing to advances in technology
• For households, among financial instruments, there is a gravitation from savings in deposits to equities, mutual funds and small savings
• Household savings in physical assets have also risen post pandemic
• Interestingly, proxy data suggests a rebound in overall savings rate in fiscal 2024, with contribution from households