In Portugal, the problem is not just low wages or the increase in the cost of living. What really separates those who can save from those who always live on the edge is a silent error rooted in Portuguese culture: the lack of financial planning.
According to Forbes, a website specializing in economics and personal finance, around half of Portuguese people admit that they are unable to deal with an unexpected expense.
At the same time, an OECD study revealed that a large part of the population does not understand basic financial concepts, such as inflation, interest rates or diversification. The consequence is a country where the majority lives for the present and postpones the future: a mistake that has been repeated for generations.
The error that undermines stability without realizing it
Ignoring financial planning is not a conscious choice. It is the result of old habits and a cultural heritage where we learned to “make what little there is worth” instead of building for the future.
According to Forbes, this way of living in the immediate has created a reactive relationship with money: you spend what you have, adjust what you can, and saving is seen as something “for those who have plenty”.
This seemingly harmless behavior has profound consequences. Without clear financial goals, without a budget and without regular monitoring, families end up managing their finances based on their bank statements. And when unforeseen events arise (a breakdown, illness or loss of income), the impact is immediate and devastating.
When improvisation turns into debt
The lack of planning gives a false sense of security: the bills are paid and the month “gets done”. But without an emergency fund, all it takes is one setback for the balance to disappear.
Many resort to quick loans, credit cards or salary advances, entering a cycle of debt that is difficult to break.
In the medium term, this error compromises the future. Reform becomes uncertain and, without structured savings, the only support becomes the public system.
According to the same publication, the sustainability of the pension system is one of the biggest challenges in the coming decades, and the lack of private savings further exacerbates the problem.
Lack of literacy, overconfidence
Another obstacle is low financial literacy. Many Portuguese people are unaware of the basics about compound interest, risk and diversification.
This leads to decisions based on emotion, such as investing on impulse, accepting expensive credit or believing in “miracle solutions” promised online.
Without information, there is no strategy. And without a strategy, money escapes every month without realizing how.
Small steps that make a difference
Despite the worrying scenario, there are simple ways to change this pattern. Financial literacy is the starting point. According to , programs from DECO, Banco de Portugal, CMVM and ASF, through the National Financial Training Plan, have sought to bring financial education to schools and families.
Change starts with small gestures: setting a budget, setting aside 10% of your monthly income, avoiding unnecessary credits and starting to invest, even if in small amounts.
With €20 per month, for example, it is now possible to create an emergency fund or invest in simple financial products such as ETFs.
Build rather than remediate
Financial management should not be seen as a luxury, but as a personal responsibility. Time is the greatest ally, and also the greatest enemy, of finances. The earlier you start, the greater the effect of consistency.
The real mistake of the Portuguese is not in inflation or interest rates. It’s about continuing to live on autopilot, believing that the future will resolve itself. Because when it comes to money, those who don’t plan pay the price.
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