Template-Type: ReDIF-Article 1.0

Author-Name: Ildiko Ritzl
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: ritzlnekazii@mnb.hu
Author-Person:

Author-Name: Aniko Szaraz
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: szaraza@mnb.hu
Author-Person:

Author-Name: Aniko Bodi-Schubert
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: schuberta@mnb.hu
Author-Person:

Title: The Role of Cash in Household Savings

Abstract: According to both domestic and international analyses, the stable behaviour of
household cash holdings in developed countries is primarily attributable to cash
holdings for accumulation purposes. In our study, we review the factors that
characterised the holding of forint cash for accumulation purposes between 2022
and 2025 and examine the motives behind individual cash-holding decisions, based
on the results of a survey conducted among the adult Hungarian population. Our
findings suggest that households' savings practices can be organised into a savings
needs pyramid, in which cash plays a significant role in the safety reserve category,
and individuals make what they perceive to be a rational decision regarding its
holding in light of the foregone return. The mobilisation of funds held in liquid form
as a safety reserve towards investment can be achieved by increasing institutional
trust and reducing economic and social uncertainty.

Classification-JEL: G41, G51, E21
Keywords: savings, cash, savings needs pyramid
Pages: 92-118
Volume: 25
Issue: 2
Year: 2026
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-25-2-st2-ritzl-szaraz-bodi-schubert.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:25:y:2026:i:2:p:92-118