In Iran, personal finance habits are shaped by a unique blend of cultural, economic, and social factors. Let's delve into the common financial practices that individuals in Iran adopt to navigate their financial landscape effectively.
1. Emphasis on Essential Expenses
Iranians prioritize essential expenses such as housing, healthcare, education, and transportation. Housing costs, particularly in major cities like Tehran, can consume a significant portion of monthly income due to high real estate prices. Healthcare expenses are also a priority, with many opting for supplementary health insurance to cover medical costs not included in basic insurance plans.
2. Investment in Education
Education is highly valued in Iranian culture. While education up to the Ph.D. level is free in Iran, families often choose to invest in private schools for better quality education. Private schools and higher education at prestigious universities may incur additional costs.
3. Tax Obligations
Iranians are subject to income tax, ranging from 10% to 15% of their total salary, automatically deducted from their wages. Additionally, a value-added tax (VAT) of 9% is applied to transaction prices.
4. Communication and Living Expenses
Iranians allocate funds for communication costs, including cell phone expenses for calls and internet packages. Monthly costs for phone calls and internet usage are generally affordable. Beyond this, general living expenses for food, clothing, entertainment, and miscellaneous items are also factored into the budget.
5. Financial Literacy and Savings
Financial literacy plays a crucial role in Iranian households. Families often emphasize saving and living below their means. Open discussions about money, investments, and financial values are common, instilling a sense of responsibility and prudence in managing finances.
In conclusion, the personal finance habits of individuals in Iran reflect a balance between meeting essential needs, investing in education and healthcare, fulfilling tax obligations, managing communication costs, and practicing financial literacy and savings. By understanding these financial practices, individuals in Iran can navigate their financial journey with resilience and foresight.
By incorporating these insights into our financial planning, we can gain a deeper understanding of the personal finance habits prevalent in Iran and draw valuable lessons for our own financial well-being.