• The financial reserves of a quarter of Czechs are considered sufficient.
• Cash is once again popular compared to pandemic expectations. It gives people a sense of security and control in tough times.
• Czechs are more confident in making financial decisions than the Swiss or the French.

Are Europeans facing financial troubles? That was the focus of a study by EOS conducted among 7700 consumers in 13 European countries. Among other findings, it shows that the average Czech is unafraid of financial decisions, saves more than the rest of Europe, is satisfied with their financial reserves, and has taken on less debt in the past six months. However, this doesn't necessarily ensure peaceful sleep, especially for the young.

More than half of young Czechs pay in cash.

Over the past six months, every seventh Czech has taken on debt. Food was the second most common item to borrow for, even though Czechs are champions in European discount shopping. Six out of ten Czechs consider prices when making daily purchases, and an equal number prefer buying discounted goods. The rest of Europe accrues more debt. New debt emerged during the crisis for every fifth European, with Hungary and Romania seeing 30% of respondents taking on new debt. Typically, the new obligation didn't exceed 499 euros. Although respondents from Western and Eastern Europe borrowed for different items, across the continent, debt was commonly incurred to cover basic needs like energy, food, or healthcare.

"People across Europe have taken on new debt primarily for essential items like energy or food, which is concerning. However, the study overall indicates that the majority of those surveyed handle money responsibly. It's interesting to note that 42% of Europeans use cash more frequently than six months ago. In the Czech Republic, it's claimed by 53% of residents aged 18-34, which is contrary to what we saw during the pandemic. Although we've been using cashless payments above the European average for a long time, for many people, cash still represents security and control, which is important to them in today's world and contributes to their responsible behavior," explains Vladimír Vachel, managing director of EOS KSI s.r.o.

Czechs skip restaurant lunches and takeaway coffees.

Consumers across Europe have had to give up certain things during tough times. The biggest cuts in planned expenses were for travel, dining out, cultural and leisure activities, with a third of Europe abstaining from these. Czechs tightened their belts even more, reducing spending on these items by up to 45% and also showing an inclination to save on clothing and daily small pleasures. Among younger respondents (18-34 years old), the determination to save is stronger, especially when their financial reserves are smaller—every third person foregoes expenses like travel or small indulgences like takeaway coffee.

Who saves, reaps benefits.

But only in Germany. Hard times force people to dip into savings, but only if they have any. The greatest willingness to save is demonstrated across Europe by people over 51 years old. Twenty-three percent of them also consider their savings sufficient. The best situation is in Germany, where almost every third person is content with their financial reserves. Conversely, the southern part of Europe shows the worst results, with only 10% of Serbians and 17% of Croatians having sufficient financial reserves. A quarter of Czechs, however, are faring much better, deeming their savings sufficient. Satisfaction with financial reserves among Czechs increases with age. Only 21% of young Czechs consider their financial reserves sufficient, similar to Slovaks or Hungarians. On the contrary, Czech respondents over 51 years old are almost as content as their Western neighbors (30%).

Young Czechs are more confident than the Swiss but desire education.

Forty-seven percent of all respondents fear their future financial situation. The whole of Europe is apprehensive about inflation and rising prices. Concerns about the future, particularly in the Czech Republic, keep more than three-quarters of respondents worried about rising prices. Young Czechs, like their European counterparts, also worry about job loss (27%), although the situation in the Czech labor market is good, with unemployment rates dropping to 3.6% in April.

Young people confront their fears with a quest for education. Over half of those surveyed aim to enhance their financial literacy, significantly surpassing the numbers for the entire Europe (43%). In the Czech Republic, interest in financial education among young people is three percentage points higher. Czechs also exhibit greater confidence in making financial decisions—46% of young Czechs don't hesitate in financial decisions. Groups of respondents over 51 years old fare even better, with 67% feeling firm in their decisions. Overall, Czechs outdo Germans and Swiss in financial decision-making confidence.

The willingness to further financially educate declines with age, with only 34% of respondents over 51 open to financial education. "The decline in interest in improving financial literacy among older people is understandable, whereas the desire among the young is warranted. The younger generation understands that relying solely on pensions and savings won't be sufficient for a secure retirement, and the importance of investment literacy is significantly growing," specifies Libor Ťupa, financial director of EOS.

About the EOS Survey "Europeans in Financial Difficulty? EOS Consumer Study"

In collaboration with Dynata, a specialist in online surveys, EOS conducted an online survey between February 3 and 9, 2023, among 7,700 consumers in 13 European countries. The survey focused on how the past six months influenced participants' consumption habits and financial situations.

EOS KSI Czech Republic, s.r.o.

The EOS Group is a leading technology-based investor in debt portfolios and an expert in open debt processing. With over 45 years of experience and operations in 24 countries, EOS offers intelligent services to approximately 20,000 customers worldwide, primarily from banks, real estate, telecommunications, energy companies, and the e-commerce sector. EOS employs over 6,000 workers and is part of the Otto Group.