Only half of Czechs save more than 2,000 per month. We can’t save, say economists

Two thousand crowns. This sum divides Czech society. It is said that half of us save more per month, the other less. At the same time, every sixth Czech can save a maximum of five hundred. Even those who make an honest effort to save often don’t do it right and don’t save as much as they could.

We save little and have become accustomed to living on debt. The savings of Czechs often do not even cover a three-month shortfall in income. The ability to save was said to be affected by covid and high inflation. “These are factors that affect the standard of living of the population and the ability of people to save any money at all, because it turns out that almost a fifth of people do not have any money saved,” said economist Petr Dufek.

If Czechs already save, savings do not earn them. 7 out of 10 people only know and use current or savings accounts. “It is not the best that can be found. For example, shares usually earn around 7 percent, but there you are already taking a risk,” pointed out economist Vít Hradil.

At the same time, a million saved in a non-interest-bearing current account will yield nothing in a year, the same amount saved in a savings account at today’s average rates will bring an annual return of around 50,000 crowns. For stocks, the return may be slightly higher. “With this election, one is almost certain that when they come back for the money in 10 years, it will not only be there, but will also be valued,” noted Hradil.

There are other alternatives. “For example, precious metals and the like, but there I think that it is already an investment tool, which even for professionals should form a smaller part of the portfolio,” warned economist Jan Bureš.

The survey also shows that men save more often than women. Prague residents have the highest savings. At the same time, the capital has the highest proportion of those who do not save anything; it is every tenth Prague resident.

“A person should have at least three to four times their expenses at their disposal, which they should have somewhere ready and immediately available,” Hradil recommended. However, according to the survey, only a third of Czechs have such savings.

jal, TN.cz