Over the past 12 months, the financial situation of almost half, or 45 percent, of the residents of Estonia has worsened, it appears from the results of a financial security survey commissioned by SEB.
People mainly try to improve their financial situation by cutting costs and saving, looking for bargains, planning daily purchases more carefully and eating out less often, SEB said.
According to the survey, only 12 percent of people in Estonia had not cut their expenses during the last year. The rest were looking for different ways to reduce their daily expenses. A large number of people, or 62 percent, have tried to save costs with the help of discount offers. Over the past 12 months, almost half of the respondents, or 49 percent, have tried to reduce expenses by planning their daily purchases more carefully, and 45 percent by eating out less often.
There are differences in cost containment across age groups. 62 percent of 18-29-year-olds have started eating out less often in the last 12 months. 50 percent of the 30-39 age group, 52 percent of 40-49-year-olds, 35 percent of the 50-59 age group and 28 percent of the 60-74-year-olds said the same.
“Taking advantage of discount offers and planning everyday purchases more carefully are among the main ways in which spending has been reduced in all age groups. At the same time, the survey revealed that the younger the age group, the more people saved on expenses during the year by eating out less. This may be due to the fact that younger people usually eat out a bit more, for example, have lunch or spend more time with friends in cafes and restaurants, and this was a point of saving for many,” Evelin Koplimae, head of the private customer segment at SEB Estonia, said.
The survey revealed that over the past year, 37 percent of Estonian residents have bought luxury products less often, and 35 percent have given up larger purchases, such as kitchen appliances or home furnishings, in order to reduce their daily expenses. In addition, almost a third, or 32 percent, have also limited their hobbies and entertainment in the last 12 months, and 28 percent of people have started traveling abroad less often.
“Savings are sought primarily on everyday expenses, either in the form of discount offers or by planning purchases more carefully. In some ways, it is easier to save on this cost group than, for example, on housing or transportation. Somewhat less has been saved on entertainment, hobbies, luxury goods, travel and major purchases, but not all respondents may spend on these expenditure groups on a daily basis, which means that they cannot or do not need to save on them,” Koplimae said.
Only 1 percent of respondents changed their residence in the last 12 months in order to save costs. 17 percent of respondents also limited food consumption, 17 percent changed their choice of clothes and shoes, 16 percent reviewed the use of transportation or 15 percent limited alcohol consumption.
The survey commissioned by SEB took place in December 2023 and was conducted by pollster Norstat. Altogether 1,000 people aged 18-74 living in Estonia participated in the study.
Source: BNS
(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)