Why is there a lack of investment culture in Spain?
In Spain, when money is discussed, the conversation often revolves around stability: saving for the future, buying a home, having a cushion for unexpected expenses… However, when it comes to investing—especially in assets beyond the traditional ones, like property or bank deposits—the scenario shifts. While in countries like the United States or the United Kingdom, discussing investments is common, in Spain, the idea of choosing a strategy to grow savings is still in its infancy.
But why does a country like Spain, with a diversified economy and access to global platforms, still favor more conservative investments? In this article, we’ll analyze some reasons behind this lack of investment culture and examine signs indicating that things are starting to change.
1. The legacy of the crisis: risk aversion
It’s impossible to understand Spaniards’ relationship with investing without looking to the past. The 2008 financial crisis had a notable impact on many households, and one of its most tangible effects has been a greater aversion to risk. Families that once considered investing their savings in funds or moderately risky assets saw their financial wealth shrink. This experience created a negative perception of financial markets, seen as unstable and dangerous. As a result, bank savings or buying a home as a “safe haven” remain the predominant strategies among those who consider themselves investors in Spain.
2. An education system that overlooks investment
The Spanish education system, unlike those of other countries, has traditionally neglected teaching about economics and personal finance, especially investments. While in other nations, entrepreneurship is encouraged, and subjects on economics are taught, like in the U.S., Spain doesn’t place much emphasis on these topics.
This often results in limited financial knowledge and a lack of tools to make effective decisions about managing money, where to invest, or which strategy suits each saver profile.
3. Real estate: the go-to investment
In Spain, a deeply ingrained concept is the security of real estate. For decades, property has been the favorite investment destination. This belief is partly cultural—traditional even—and also a form of financial security, as fiscal policies have favored home purchases, reinforcing this trend.
There’s nothing wrong with preferring real estate investments over other alternatives with similar risks. But this preference shouldn’t limit other options. By focusing almost exclusively on real estate, many Spaniards fail to diversify enough and miss opportunities in financial markets that, while carrying objectively higher risks, offer greater liquidity and attractive long-term returns.
4. Traditional banking: comfort over innovation
Until recently, the investment product offerings from banks in Spain were quite limited and, in many cases, lacked transparency. Although this is changing, for years, traditional banks offered products like fixed-term deposits or conservative funds that didn’t require much knowledge from the investor. These products provided modest returns but ensured the sense of security that Spanish customers sought.
The emergence of online investment platforms—like Urbanitae—or fintech companies that democratize access to more sophisticated financial products has broadened the investment horizon for many savers. However, the transition has been slower due to the inertia of trusting traditional banking institutions.
5. Distrust in the financial system
Over the years, Spain has experienced events that have eroded trust among investors. From the collapse of savings banks to scandals like preferred shares, Spaniards’ relationship with the financial system has faced challenging moments. This history has reinforced the perception that investing is for the wealthy or that investing means risking everything—two ideas still present today.
Additionally, the lack of access to financial advice, exacerbated by the fact that many people rely on recommendations biased by commercial interests, increases the risk and, therefore, the perception that the system works against the investor.
As for the future of investment in Spain, as the population becomes more aware of the need to manage finances more efficiently, a significant cultural shift is beginning to emerge. New technologies, along with the democratization of investment, are making the process easier. The challenge now is to break free from the fears and myths inherited from the past, adopt a more open mindset, and seize the opportunities offered by digitalization.