Tuesday 19 June, 2018

How would you spend $100?

Barbadians discuss their spending habits.

Barbadians discuss their spending habits.

Loop teamed up with the Central Bank of Barbados to find out how Barbadians are spending their hard-earned cash.

We were curious to know what's important to the Barbadian consumer and it turns out savings and investments are top of mind!

In fact, Central Bank representative, Sherri Bishop, told Loop that since the re-launch of savings bonds in June last year, Bajans have bought more than $110 million in bonds.

She noted that while "banks are giving you a quarter of a percent or a half of a percent. Savings bonds give you 5.5%. That’s the difference between getting $12 or $24 on a $1,000 investment after five years and getting $300 plus.”

Bishop further explained that savings bonds are an investment with a pre-calculated end value, which is referred to as the nominal value. The buyer can determine the amount of money they want to end up with and buy that amount in bonds.

“So when you buy a $100 bond you are not paying $100. You’re paying $76.24 and over a five-year period the value of your investment increases until you get the $100. When you buy savings bonds, you are buying what you want to end up with and paying less than that upfront.”

With that in mind, Loop hit the streets of Bridgetown to find out what the average consumer would do with $100.