Cayman households are being encouraged to strengthen their savings, even as the country’s strong purchasing power continues to help cushion the impact of rising costs.
Numbeo’s Cost of Living Index by Country 2026, published earlier this year, placed Cayman behind only Bermuda on its cost-of-living ranking, but highlighted that residents are generally better positioned to absorb those expenses.
Notwithstanding this, Andrew Swearing, loans and deposits specialist at JN Cayman, the only building society in the Cayman Islands,
said purchasing power does not remove the need for people to prepare for unexpected expenses and future financial commitments, by
maintaining savings or building a financial reserve.
He recommended starting to save with an amount that is manageable and making it consistent. He said building even modest savings can help households absorb unexpected expenses and provide greater flexibility for planned expenses, emergencies and longer-term goals.
“Households should treat saving as a regular budget item and set aside money as soon as
income is received,” he said. “Establishing a consistent savings habit can provide a foundation
for greater financial resilience. It does not have to be a large amount. Putting aside whatever
you can afford each week or month can add up over time and help create a financial buffer for
the expenses you cannot predict later.”
He also recommended keeping money earmarked for everyday expenses separate from savings to avoid dipping into the savings for routine spending and make it easier to keep track of money set aside for emergencies or longer-term goals.
“Separating your savings from your day-to-day spending can make a real difference. When the
money you are saving is kept in a dedicated account, you are less likely to use it without
realising how much you have taken out or what that money was originally intended for,” he
said.
Mr Swearing also noted that choosing an account or savings product with competitive interest rates will allow money to grow over time. He pointed out that JN Cayman’s range of deposit solutions, including term deposits, provide options for anyone to set aside funds for a specified period.
“Term deposits give customers an opportunity to put money aside for a defined period while
earning a return. Right now, we're encouraging customers to take advantage of our own
deposit offerings, with rates of up to 3.35 per cent per annum, to protect their savings from
everyday spending and support longer-term financial goals,” Mr Swearing said.
Reiterating that financial resilience increasingly depends on having resources set aside beyond what is needed for day-to-day expenses, he said households should take advantage of the range of support available to help them develop and maintain a healthy saving pattern.