The Poles cover over 90 percent of their basic and most frequent expenses from their monthly incomes. Just one in five Poles finances holidays, redecoration, purchase of domestic appliances, car repair or organisation of wedding from savings or money received as a gift. The most willingly we buy clothing, shoes, gifts for the loved ones and cosmetics. On the other hand, the least pleasure we derive from purchases that are financed by taking loans.
According to a research conducted by Millward Brown Institute on a request of KRUK Group, the leader of credit management in Central Europe, over two-thirds of Poles regard they financial situation as average. Their monthly incomes are evenly matched with expenses, what means that this group does not make any savings. Just 13 percent of interviewees declared that their expenses were higher than income. On the other hand, 17 percent of interviewees regard their financial situation as positive – they do not have any arrears and they manage to save money for future needs.
Expenses of Poles
The most common expenses made by the Poles are those on basic needs like food and clothing. On the second place there are expenses connected with housing that is rent, costs of heating, electricity, water and gas, and phone bills, television or internet payments is on the third place. The Poles in over 90 percent cover these costs from their monthly income like salary, pension or income from renting out a flat. The respondents declare that unplanned or occasional like holidays, redecoration, purchase of domestic appliances, car repair or organisation of wedding are covered from their savings and money received as a gift. The wealthy persons use their savings a bit more frequently, as may be the cause of better financial stability. They use the money for occasional expenses and travels. The impecunious persons also use their savings but these are more often allotted for the purposes connected with their children.
When looking on the results of the research, it can be assumed that if vast majority of basic costs like e.g. food, clothing or rent is covered from regular income, then each expense that surprises us or is not a monthly, routine plan has strong impact on our household budget. This situation is dangerous because it may lead to delay in payment of liabilities and in a long term to falling into serious debts.
On what do we like spending our money?
Millward Brown Institute also checked on what we like spending our money. The most willingly we spend our money on little expenses giving direct pleasure like clothing, shoes, gifts for the loved ones, hobby or food. More important for women are expenses on clothing, shoes, jewellery and connected with beauty care. Men on the other hand prefer spending money on electronics and also expenses connected with motorisation, sport and drugs. On the other side of the barricades are expenses that we treat as a must e.g. rent and media, credits or medicines.
What is interesting, the expenses on which we take loans, do not give as such pleasure, same as payment of instalments of credits and loans which are the least liked group of costs. However, it is worth pointing put, that repayment of loans is more attractive for wealthy persons. It is the case, probably because payment of each instalment gets us closer to the point where this liability stops being a serious burden for household budget.
Delays in payment of liabilities
The interviewees answered also questions concerning delays in payment of liabilities. Every sixth, seventh Pole admitted that he/she experienced having delays in payment of liabilities. This answer, however, was much more frequent – as many as one-third of cases - when concerning persons that negatively assessed their situation and those working casually and unemployed.
Almost 40 percent of those who used to have delays in payment of liabilities, indicated that this situation was concerning payment of instalments of loans or credits. Even more persons did not pay for rent or media and occasional expenses within the term of payment.