How people manage their finances in Chile

Chile has developed an efffective financial  system based on Macroeconomic policy is used to stabilize the economy of the country also the dynamic of the economy in Chile has a strong reputation for foreign trade, financial stability. This makes our country a choice for investing, working and living.

If we compare the cost of living in Chile with other Latin countries such as Peru and Venezuela we can see an economic gap to different due to economics politics where the resources are not used correctly.

According to an article published in International living Chile has one of the highest cost of living relative to what people earn in South America. However Peru and Bolivia have different prices for basic needs , food, transportation, housing, health. In fact ,those features are 50 percent more expensive in Chile than Peru, Bolivia and Venezuela.

The access to credit cards is not limited  in our country even, when you go to a shop the sellers offer you a credit cards and push you to do it by asking if you have or not the credit card of that shop. However some people accept the credit card and use it without control buying mainly clothes, technological devices and the costumers get in debt  because of the politics of the shop buy only in their shops.

Based on “The impact of payment cards on economic growth” people used to buy only with cash instead of credit  cards contribute to economic activity by reducing transaction cost increasing transparency and efficiency in teh services.

On the other hand, minimum wage is not enough to cover all basic needs for a family that is adjusted yearly base don inflation that currently was adjusted to 285.000 chilean pesos .Also there is a big gap between the lower and higher salary eventhough, Chile has one of the highest minimum wage in Latin America  according to The Santiago Times.In fact European countries as Germany has a big minimum wage because the cost of living is bigger and they have top pay a better salary to cover basic needs that are more expensive.

Finally ,the economic system in Chile should be changed and give more opportunities for people who are affected by debts because only people that have a better salary are able to buy without indebt in comparison of people who use credit cards.Besides, the minimun wage must be changed totally beacuse affect it negatively the lower social class due to high cost of living.