A recent study conducted by Ipsos on behalf of Creditas Bank sheds light on the financial habits of Czech citizens, revealing concerning trends in savings and financial preparedness. According to the findings, a significant portion of the population faces challenges in saving, with every sixth person in the Czech Republic managing to set aside a maximum of five hundred crowns per month. Furthermore, 50% of respondents reported saving less than two thousand crowns monthly, underscoring the financial strain experienced by a substantial portion of the population.

The study uncovered that one-third of households have savings ranging from one hundred thousand crowns to half a million. However, a worrisome revelation is that nearly half of the respondents admitted their savings would not cover a three-month interruption in income, indicating a lack of financial resilience for a significant portion of the population.

Ivana Pícková from Creditas warned against ineffective saving practices, revealing that seven in ten respondents keep their savings in cash or a non-interest-bearing current account. She emphasized the lost potential returns, highlighting that a million crowns deposited in a non-interest-bearing account would earn nothing over a year, while a savings account could yield around 50,000 crowns annually at current average interest rates.

The study also delved into the popular saving tools among Czech citizens, with cash and savings accounts ranking highest, utilized by 71% and 69% of respondents, respectively. State-subsidized products, such as pension savings, building savings, and investment funds, followed closely. Notably, the survey indicated gender and regional disparities, with women saving less than men and residents of Prague holding the highest savings, albeit with a concerning proportion of non-savers.

These findings underscore the need for financial education and awareness campaigns to promote effective saving practices and financial preparedness, especially in the face of economic uncertainties. The study serves as a call to action for both financial institutions and policymakers to address the challenges and enhance the financial well-being of the Czech population.

Article by Prague Forum