More than a million Czechs live on the brink of poverty, a fifth of them do not have the basic necessities of life

The analysis of the Invisible project, which describes groups of people struggling with various problems that make life difficult for them, shows that in the Czech Republic approximately 1.153 million people live in households that can be described as low-income.

They are mostly able to cover the basic needs of life from their income, but they practically have no money left to create financial reserves.

Single mothers and young families deserve the most help from the state, according to the Czechs


Three out of four Czechs have already experienced a financially difficult situation in their lives


Research by the Ipsos agency for the Invisible project and the Provident Financial company showed that 11 percent of low-income Czechs can no longer cover their current expenses, and another nine percent can only do so by using savings.

According to the analysis, almost a quarter of a million people do not have enough money for basic life needs. If the current rate of inflation holds, another 27% of respondents who said they had to cut back a lot could be on the verge, the survey showed.

Low incomes understandably have an impact on other areas of low-income households’ lives as well. For example, parents do not have enough money to buy school supplies, pay for clubs or outdoor schools, etc. Only every second family can afford at least one week-long family vacation per year.

Inflation affects children as well, parents limit school expenses


Financial literacy is low

The survey also showed that almost seven out of ten low-income households do not have an overview of their income and expenses, which also confirms long-term surveys about the lower financial literacy of people with low incomes

More than a third of people believe that for a dignified life a person needs a monthly income of at least 30 thousand net crowns, which roughly corresponds to the amount of the average net salary. In the Czech Republic, however, only a third of people achieve it. Only a quarter of respondents are satisfied with their salary, less than a third are trying to get a better-paid job.

The survey also showed that only seven percent of people are able to go to a part-time job while working full-time. Another 28 percent of low-income people said that they don’t have the time or energy for a part-time job, while a fifth would like to find one.

“Unfortunately, these people do not have many options to defend themselves against price increases. They can, for example, take on part-time work or improve their qualifications. However, I can easily say this from the table, but I will have a hard time explaining it to a person who has come from a shift in a factory. Low-income households can thus rely only on the solidarity of family members or actively start using social benefits,” said economist Aleš Rod from the Center for Economic and Market Analysis.

More than two fifths do not ask for help

The survey showed that more than two-fifths of people from low-income households do not use any help from the state.

Photo: News

What help from the state do people with low incomes use

Only a low percentage of respondents receive some of the benefits, for example one in nine mentioned housing allowance, nine percent receive child allowance, six percent care allowance, etc.

In an emergency, you can apply for housing allowance and other benefits


Expert recommendations
Compile an overview of income and expenses
Write down your monthly income and expenses down to the last penny. It won’t be easy, but you can’t get your budget under control without it.
Take advantage of state subsidies and supports
Find out if you are entitled to any of the state subsidies. They will advise you on this phone number: 800 77 99 00
Draw contributions from health insurance companies
Everyone is entitled to contributions from health insurance companies. These contributions can amount to thousands. Don’t let them fall by the wayside. Insurance companies can also contribute to children’s rings. Go for preventive examinations, there are also benefits for them.
Find out about employee benefits
Companies offer their employees a number of bonuses. If you are entitled to them, use them in time.
Get rid of bad habits
Czechs spend an average of CZK 3,000 per month on alcohol and cigarettes. If you are one of them, try to get rid of these bad habits. You can save more than CZK 36,000 per year.
Fix what can be fixed
Don’t throw away, repair. You can find instructions for almost everything on the Internet. If you are missing a tool and only need it once, borrow it.
Plan your shopping
Always carefully write down a list of what you buy at the store to avoid impulse buying and eat before buying groceries so you don’t buy too many things.
Cook at home, cut back on restaurants
Cooking from basic ingredients is much healthier and cheaper than eating convenience foods. On average, Czechs throw away over 40 kilograms of food per year, try not to waste it. Make snacks for children for school and for free time. Homemade lemonade is much cheaper than raspberry in a stand for 50 CZK. Don’t spend on lunch menus, bring boxes to work, or at least alternate it.
Buy textbooks second hand
Buy second-hand textbooks for children, be sure to try looking for them on the Internet as well.
Source: The Invisibles

The article is in Czech

Tags: million Czechs live brink poverty basic necessities life

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