Christmas expenses. How do representatives of different professions approach them?

December is a month of increased expenses related mainly to Christmas shopping. Some of us tend to stretch domestic budget more and take out loans, others will use money they had set aside in advance. This is the result of the survey carried out by Kantar TNS S.A. for KRUK S.A. “Financial behaviour of representatives of different professions – in Poland and in other countries in Europe”.

 - The time before Christmas should be special for us, not only in terms of the atmosphere but also in terms of managing our personal finances. It is important that we do not get carried away by the shopping frenzy and that we consider if we need to take out a loan or a credit facility for Christmas. Maybe it is worth spending Christmas in a more modest way, so that we to not overspend our budget - says Agnieszka Salach from the KRUK Group.

As Central Statistical Office data show, the prices of goods increase each year. In the last ten years, consumption products and services became more expensive by as much as 22 per cent*. If we wish to put similar products in our Christmas basket as we did before Christmas last year, this year we are going to pay approximately 2.5 per cent more.* This is important when planning expenses for the coming Christmas. As they survey by Kantar TNS S.A shows, representatives of different professional groups may approach such shopping organization in completely different ways. 

For example, the representatives of the retail sector spend more than their household budget allows. This applies to more than the half of employees of this sector (57 per cent). They do not plan their budget and they often approach expenses spontaneously. This approach can lead to exceeding the household budget. And what comes next? In such a situation, tradesmen often look for help among friends and family. They prefer to borrow the sum from them than to take out a credit facility. This is why representatives of this professional group should control their spending in the time of frenzy before Christmas. 

The survey shows that representatives of education and medical sectors (respectively 15 and 16 per cent) will probably avoid Christmas credit facilities and loans. They are cautious when it comes to taking out credit facilities and they treat such a solution as a last resort. Representatives of the construction sector have a totally different approach to this issue. They try to save their household budget by taking out credit facilities more often than others. They incline to take on a loan of 73 per cent of their average monthly remuneration.

Representatives of the financial sector also have little concern against taking out a loan. They are the most open to this form of financing. What can influence such an approach may be their professional knowledge as well as including a long-term repayment in their household budget. In comparison to other sectors, financial specialists decide to take out the largest loan amounts. These loans constitute as much as 106 per cent of their average monthly earnings. Luckily, thanks to their high income, this behaviour rarely results in exceeding their household budget.

Other sectors, such as IT or transportation, do not have a characteristic way to manage their budget planning. This may, however, result from their financial situation - these groups evaluate their situation as “good”. In situations when expenses increase, representatives of these professional groups most often use savings or they resign from buying selected products.

The survey “Financial behaviour of representatives of different professions – in Poland and in other countries in Europe” was carried out by Kantar TNS S.A. for KRUK S.A. in October this year and there were 7000 people altogether who took part in it. The sectors which took part in the survey are: services, retail, construction, transportation, financial, IT, medical, educational and uniformed services sectors.

*Central Statistical Office “Monthly Price Indexes of Consumer Goods and Services Since 1999”

*Central Statistical Office “Quick Estimation of Consumer Goods and Services Price Index for November 2017”