Romanians change their financial behavior

Nearly 40% of Romanians say their financial situation has deteriorated in the last year

Bogdan Matei, 20.09.2022, 14:00

Like everywhere else in the world, prices continue to rise
in Romania as well. The annual inflation rate exceeded 15% in August, according
to the National Statistics Institute. Last month, prices for foodstuffs
reported the highest increase, 1.8%. Services also went up on average by nearly
0.4%. Significant price hikes were reported in July in the field of air
transport, by nearly 24%. The price for sugar went up by nearly 10%, the price
for butter by 6.8% and milk by 5%. Rail transport and the telecom sectors
reported slight decreases. Compared to August 2021, the biggest price hikes
were those for natural gas, 70%, potatoes by over 54% and cooking oil by nearly
50%. 30% price hikes were also reported for air transport, fuel, milling
products and sugar. All that has a strong impact on the purchasing power of
Romanians, who have some of the lowest wages and salaries in the EU. Romanians
have also panicked as winter draws close, and that means of course bigger bills
for heat, electricity and gas.

Half of Romanians have cut back on their
spending, and the share of those who save has significantly increased compared
to last year. Virtually, people have adapted their financial behavior to the
accelerated inflation rate, the overall soaring prices and the higher energy
bills, according to the Money Matters study conducted by the Austrian group
Erste in countries in Central and Eastern Europe. According to the research,
over 75% of Romanians are saving money for potential emergencies and unforeseen
situations, while 74% are building up a cash reserve for the family. Both
categories have gone up 8% compared to last year. Additionally, one in four
Romanians is saving to invest in education and professional training, against
merely 16% last year.

The study also revealed that 64% of Romanians say they
have been affected by inflation, while 38% believe their financial situation
has deteriorated in the last year, which is double the percentage reported in
2019. On average, Romanians save some 70 EUR per month, by 9 EUR more than in
2021, and only a third save money for retirement. 61% of respondents believe
financial education is the remit of schools and other education institutions.
56% believe this is the responsibility of parents and family, while 45% believe
banks and other financial institutions should see to it. (VP)