A recent survey by Ipsos for Provident Financial has found that most Czechs turn to family members for financial support in times of need, particularly for small amounts of up to 5,000 Czech crowns. However, many respondents indicated that they are hesitant to discuss financial matters with their relatives, with only around two-fifths of those surveyed discussing financial matters with their partners.

In contrast, approximately the same number of respondents stated that they discuss their wages and salaries with extended family members, and a quarter of respondents partially share information about savings or investments. The survey highlights the taboo around discussing financial matters, even with those closest to us, which can often hinder financial planning and management.

Despite the reluctance to discuss financial matters, borrowing within the family is still customary in Czech culture, with three-fifths of respondents confirming that they had borrowed money from a family member. Nearly half of respondents indicated that they borrowed only occasionally or no more than once a year.

The survey suggests that while borrowing from family members may seem like an easy solution, it is essential for borrowers to be aware that lending is still borrowing, and establishing pre-agreed rules is necessary. It is also vital for individuals to be honest and transparent about their financial situation to avoid any misunderstandings or future conflicts.

The survey sheds light on the importance of financial education and the need for individuals to feel comfortable discussing financial matters with their loved ones. It is crucial for individuals to understand how to manage their finances responsibly and make informed decisions about borrowing, saving, and investing.

Article by Prague Forum