The purchasing power of Italian families continues to decline and official Istat data also confirm this.
In fact, the most recent findings from 2025 show that family income grew very slowly while inflation continued to reduce the real value of money.
It means that even when salaries increase, they are not enough to offset the cost of living. Added to this is another problem. which is often underestimated, i.e. the wrong financial choices or those based on habits that no longer work today.
And this is precisely where the real risk arises. It is not only inflation that reduces purchasing power but also some very widespread errors that are causing savings to lose value without people realizing it.
So what are the three most common ones that are burning up purchasing power and why are they becoming increasingly dangerous?
Why are we talking about a purchasing power alarm?
According to the Istat 2025 annual report, between 2019 and 2024 there was a profound gap between the trend in wages and the increase in prices. In fact, salaries grew overall by 10.1% while in the same period inflation grew by 21.6%.
Although the recovery recorded in 2024 then made it possible to mitigate the losses suffered in the critical two-year period 2022-2023, the recovery remains only partial. And it is precisely this dynamic that has triggered a real savings alarm as the speed of prices continues to exceed citizens’ ability to set aside savings.
Here is an example of loss of purchasing power:
let’s suppose that in 2020 a weekly grocery shopping cost 100 euros. With a 20% price increase in 2026 the same expense would cost 120 euros. If the 100 euros set aside have not been invested or grown, today they are no longer enough to cover that expense as purchasing power has been reduced.
The first mistake that reduces the value of your savings
Certainly one of the main mistakes that reduces the value of savings is the lack of updated planning of expenses and provisions.
In fact, many Italians save money by following fixed schemes or old family budgets without considering whether they are still suitable today.
A simple way to start saving more consciously is the 50-30-20 rule with which:
- 50% of income must be allocated to essential expenses such as bills and rent;
- 30% for personal expenses and free time such as a dinner with friends or an evening at the theatre;
- 20% must finally be set aside as savings or invested in safe instruments.
Thanks to this method it is possible to better verify what comes in and what goes out so as to avoid unnecessary expenses and create a constant savings base over time.
What is the second mistake that causes you to lose purchasing power today?
The second mistake that reduces the purchasing power of your savings is leaving them stuck in your current account.
In fact, that money, parked for months or years, does not generate sufficient interest to compensate for the increase in prices.
A safe alternative to protect the value of savings are, for example, deposit accounts which allow you to obtain fixed interest on sums tied up for a specific period, thus helping to better combat inflation.
Furthermore, postal savings bonds offer predetermined returns, are easily accessible and allow you to protect your capital without taking risks thanks to the State guarantee.
What is the third mistake?
The third mistake that today reduces the purchasing power of savings is underestimating how much time it really takes to make them grow.
Many believe that setting aside a small amount each month or receiving a small raise is enough to offset the price increase. Getting back to the standard of living they had years before, however, is not that simple at all. The process requires more time and careful planning.
Leaving the money sitting in the account, as explained, does not produce significant interest and even risks making it lose value over time. To protect them and make them grow over time, it is useful to create a diversified investment portfolio, distributing the money across instruments with different maturities and objectives:
- a portion can be invested long-term in instruments that offer higher returns such as diversified ETFs or balanced funds;
- a portion should instead be allocated to safe medium-term instruments such as BFPs, government bonds or deposit accounts;
- finally, a portion should remain liquid to cover daily expenses or emergencies.
This strategy allows you to grow savings over time, protecting capital from losses and guaranteeing liquidity for daily expenses. Those who ignore this principle risk seeing their savings slowly reduce, even if they set aside a constant amount every month.
How to look to the future
To protect the purchasing power of your savings, it is not enough to correct daily mistakes. It is indeed necessary to start thinking in the long term.
It means that it is not enough to manage the family budget month by month but you must prepare for any unexpected events such as:
- the increase in prices;
- an unexpected healthcare expense;
- higher bills.
Planning in advance means organizing your savings in a simpler and more flexible way so that you can face even the most uncertain periods without using the money set aside. The aim is to have a stable economic situation, capable of dealing with unexpected expenses.
To achieve this objective, it could be useful to create an emergency fund that covers at least 3-6 months so as to support safe instruments such as deposit accounts or government bonds. By following this path, in fact, even if a sudden expense arrives you are not forced to use the money intended for important projects.
Finally, it is essential to inform yourself and understand how money management works. Often you start saving without knowing the tools you use well and this can lead to poor choices.
Knowing in a simple way how tax rules, investments and the different savings options work helps you to better manage your money.
You don’t have to be a financial expert, you just need to have some basic knowledge to understand where it is best to invest and how to protect your savings over time.
