Czechs Save Little, Don’t Have Enough Money

According to a survey by EY Consumer Banking, more than a quarter of Czechs save less than 1,000 koruna a month, while 35% save between 1,000 and 5,000 koruna. Only 18% can save up to 10,000 koruna a month.

Petr Janeček from EY Czech Republic commented on the results, stating that “a significant portion of the population is unable to save enough funds to secure themselves for retirement.” Survey data also shows that 59% of people cannot invest more through savings because they don’t have enough money.

The situation is further complicated because people are practically unable to devote more time to budgeting in their households. Almost half, or 47%, do not use any product or service to help manage their finances. Roughly a quarter use pencil and paper to manage their household budgets, 17% use a mobile app, and 6% use a computer program.

The recent survey by the Czech Banking Association and Ipsos also looked into the financial literacy of Czechs. According to the study, 59% of the population saves money for unexpected situations, and 43% of those people save for retirement. More than three-fifths of those saving for retirement, or 61%, save up to a maximum of 2,500 koruna.

According to the banking association, a financial reserve would last most people three months, with 27% of Czechs in this category. Around 22% of people would last six months, while 14% would be able to handle a loss of income for over a year.

Another issue is the question of the benefits of loans, with only 32% of respondents answering correctly. According to Monika Zahálková, the association’s executive director, people with only primary education are more likely to struggle financially.

A May survey by Kantar for Provident found that every tenth Czech has only half of their income left after paying for expenses. Last year, only every twentieth Czech had such a situation. Forty percent of people have 20-50% of their income left after paying regular expenses, but almost 10% have nothing left after paying their bills.

The surveys show that financial literacy is an essential issue in the Czech Republic, with many people struggling to save money and manage their finances effectively. Individuals need to seek out resources and education to improve their financial situation and ensure a secure future.