When Saving Isn’t Enough

The recent decision by a local bank to further reduce interest on savings accounts has once again sparked strong emotions. For many, saving feels like the safest and most trusted way to manage money. So when the return on savings drops, it quickly feels like something is being taken away. But this situation actually reveals something more fundamental about how we view wealth, growth, and financial security.

The reality is that saving alone will never be enough to preserve purchasing power—let alone build wealth. Today’s savings rates are low and are taxed on top of that. Meanwhile, prices keep rising year after year. With average inflation of 2 to 3 percent annually, money sitting in a savings account steadily loses value, even if the balance itself doesn’t change. This has nothing to do with good or bad policy by a bank—it’s how the global financial system works.

Large institutions have long understood that money only grows when it is put to work. Not through speculation, but through thoughtful investing. Pension funds, insurers, and professional investors all follow this approach. They spread risk, invest in businesses, bonds, commodities, and real estate, and harness the power of compounding over time. That’s how they preserve purchasing power and grow their assets—even when savings rates remain low.

For many households, investing can feel distant—too technical, too uncertain, or simply “not for them.” But now that interest rates are falling and inflation continues to erode value, it’s becoming clear that the old habit of only saving is no longer enough. Saving still has its purpose—it creates an emergency buffer—but it’s not a driver of growth. Those who rely solely on saving are standing still financially while prices keep climbing.

In Curaçao, this presents a clear opportunity. More financial education, better guidance, and a culture that actively encourages wealth-building can make a real difference. Investing doesn’t have to be complex, and it’s not about chasing quick wins. It’s about structure, discipline, and time. Anyone who starts today with a simple, well-thought-out strategy is already building future financial security.

The recent development in interest rates should not be seen as a threat—it’s a wake-up call. A reminder that financial stability doesn’t come from idle money, but from money that is working for you. The question isn’t why interest rates are falling, but rather what you’re willing to do to preserve purchasing power and move forward financially.

The opportunities are there. The first step is gaining knowledge and choosing to look beyond saving alone. Those who learn to make intentional investment decisions today are building a path to growth that isn’t tied to interest rates, but to insight, structure, and vision.

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice, an offer, or solicitation to buy or sell any financial instruments. The views expressed are those of the author at the time of writing and may change without notice. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. Readers are encouraged to seek independent financial advice tailored to their individual circumstances.