During the pandemic we spent less and invested more
According to the research of Finax and Prof. Krzysztof Waliszewski, during the pandemic 32,5% of respondents from Central European countries noted an increase in incomes and a half did not notice any significant changes in their financial situation. Therefore, the conclusions of the study are not surprising: you spend much less and invest more. Cool!
The pandemic did not negatively affect nearly 58% of the people surveyed in May 2021. Interestingly, such an answer was indicated also by over 60% of the respondents from Slovakia, Finax's home market. Only 3% of all respondents have lost their job and only three people declared that they had difficulties with repayment of loans.
You spent less...
As commerce and entertainment have died down in the pandemic time, it is no surprise that spending is lower. Nearly 70% of the respondents noticed a reduction in spending, and only 3% saw an increase in it. In this situation, an increase in savings was a natural consequence - and this was the case for 62% of them. Covid-era habits can take hold. 32% of the respondents are planning to reduce spending comparing to the period before the pandemic, whereas only 11% of them want to let go of the belt.
In Central European countries people tend to have more and more savings, which can be seen in the macroeconomic data. Only in 2020 they increased by 14% and they grow every month. Unfortunately, our countries have one thing in common - the vast majority of household money is deposited in banks. There, after taking into account inflation, they lose nearly 5% of value per year. In Slovakia, prices are not rising so fast, but the inflation is also eating up savings. We are therefore glad that the respondents are more and more willing to invest. This could be one of the good habits that will stay with us after the pandemic. The second one is definitely the digitization of the investment process, in which we are trying to actively participate - explains our boss, Juraj Hrbaty.
…you invest more
67% of our respondents declare they invest more and 55% claim that after the pandemic they intend to invest even more than before.
The time of the pandemic and coronavirus is a test of personal finances and household budget management skills, including income, expenses, savings and investments. The results of the study show that Central Europeans managed the shock of the COVID-19 pandemic quite well. Certainly, some pandemic behaviors, including greater control of the household budget and more frequent use of financial applications, may become permanent after the pandemic - comments the author of the study, Krzysztof Waliszewski, Professor at the University of Economics.
The study on the financial impact of the pandemic was conducted in May 2021 in the form of an online survey. . In the study participated 1500 people from Central European countries. 89% of them are you, dear Finax clients. Thank you for being honest! We will soon present new conclusions from the survey - this time about personal finance management applications that help you, among others, in saving and spending.