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Wednesday, 24.04.2024, 09:58
1/4 of Estonian households don't have savings to cover 1 month's expenses
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"In this survey that was taken for the first time ever we made several interesting findings about how Estonian residents plan their finances. Where 92% of Estonian families do financial planning, more than a third of families have experienced financial difficulties within the past year and one-fourth have no savings for a rainy day," Kati Voomets, manager of the Swedbank Institute for Private Finances, said.
"The bigger income and savings a family has, the less consistent one is planning one's finances and vice versa – the smaller income and savings a family has, the more consistent is their habit of planning," Voomets said.
One in five residents in Estonia can be described as strict financial planners, meaning that they set aside money on payday and plan the rest of expenditures in accordance with the size of their monthly income.
Estonian families are rather open about their incomes, with 70% of respondents knowing the size of the income of their spouse or partner, 21% knowing its approximate size, 5% not knowing it, and 4% answering that their spouse or partner does not work.
Slightly over half of Estonian residents are not satisfied with their income. The bigger is the family's income, the more satisfied family members tend to be with it. The only family type where satisfaction with one's income surpassed dissatisfaction was families where the younger generation lives with parents. In the rest of family types the situation was the opposite and dissatisfaction with one's income was the bigger, the older children the family had.
One in three families had experienced financial difficulties related to day-to-day coping within the past year. The highest ratios of such answers came from families with children and small-income families, whereas regionally the percentage of such families was highest in northeastern Estonia, said the director of the Institute of Economic Research, Marje Josing.
The survey was taken in March this year by conducting online interviews with 1,021 residents of ages 18-74.
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