Young People’s Financial Preferences: The Impact of Loan and Deposit Interest Rates on Borrowing and Saving Behaviors

Monica-Gabriela Perjescu and Pompei Mititean
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Monica-Gabriela Perjescu: National University of Political Studies and Public Administration (SNSPA), Bucharest, Romania
Pompei Mititean: National University of Political Studies and Public Administration (SNSPA), Bucharest, Romania

CECCAR Business Review, 2025, vol. 6, issue 1, 59-72

Abstract: This study aims to investigate the preferences of young people aged 17 to 30, as well as the preferences of graduates who are already employed, regarding their desire to take out a loan or purchase goods using their own resources. At the same time, the paper examines the impact of the evolution of deposit interest rates on young people, determining their inclination towards other forms of savings rather than bank deposits. The study employs a quantitative method, applying an online questionnaire created through Google Forms, which automatically collected data between January and April 2024, with a total of 188 respondents. The analysis of the obtained data was conducted using the SPSS program. The results show that respondents consider current loan interest rates to be high, thus preferring to purchase goods using their own resources rather than taking out loans. Furthermore, they show interest in other forms of savings, such as government bonds, corporate bonds, listed shares, mutual funds, real estate investments, and insurance policies, instead of bank deposits. In general, the results indicate that as loan interest rates decrease, young people become more inclined to take out loans, and as bank deposit interest rates become more advantageous, they are more likely to establish deposits.

Keywords: interest; loans; deposits; monetary policy interest; the economic crisis; the COVID-19 pandemic; the Romanian banking system (search for similar items in EconPapers)
JEL-codes: D14 E21 G21 G41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:6:y:2025:i:1:p:59-72

DOI: 10.37945/cbr.2025.01.07

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