We are increasingly recognizing the need to put aside money. This is the conclusion of the latest (7th) edition of the survey on "Attitudes of Poles towards Saving"* by The Citi Handlowy Leopold Kronenberg Foundation. Three-quarters of respondents now believe that saving is worthwhile, while in 2013 that percentage was much lower at 61%. Unfortunately, our statements don't correspond with the facts. Only 41% of Poles actually put aside money. Retirement has not yet become a priority goal for saving, and in making investments we're afraid of risk and therefore keep our funds in non-interest-bearing personal accounts.
For years, the results of this survey have left no room for illusions: Poles acknowledge the merits of saving, but only a small percentage of us regularly set aside some money. However, there are reasons for optimism: for the first time in seven years, the proportion of people regularly putting aside money has topped 10%. According to the 7th edition of the survey on "Attitudes of Poles towards Saving", 12% of respondents indicate that besides taking care of current expenses, they save a certain amount of money every month.
Household budget Polish-style
The survey indicates that the awareness of Poles regarding management of their finances is slowly growing. In this year's edition of "Attitudes of Poles towards Saving", as many as two-thirds of respondents said that they plan larger expenditures such as holidays, birthdays, and school textbooks a month or even six months in advance. It is very significant that in comparison to 2013, the number of people living "from the first to the first" has decreased (18% in 2014 vs. 23% in 2013), although the percentage of those spending more than they earn has remained steady (5%). Planning, however, is not enough for efficiently managing a budget - one should also know how to control spending. How do Poles fare in this area? The fact is that as many as 81% of us claim that they control their spending, with one-third doing so extremely meticulously. Nevertheless, the percentage of people who don't control their spending is still high (14%), although it has slightly decreased compared to last year (17%).
Retirement as a low priority
Despite a heated media debate, the transfer of funds from the Open Pension Fund (OFE) to the Social Insurance Institution (ZUS), and increasingly gloomy forecasts regarding the amount of our future pensions, the majority of us don't save with a view to securing our financial future. And although the percentage of people saving for retirement is the highest it has been in seven years (16%), it is still far too low for us to be tranquil about our "golden years". In the context of our surveys, the future of the majority of Poles does not make for a rosy picture, says Krzysztof Kaczmar, President of The Citi Handlowy Leopold Kronenberg Foundation. Why don't we save with a view to retirement, despite so many reasons that we should? I think it is because we are not accustomed to taking responsibility for ourselves and for our financial future. We believe that the state should take care of this, and that "somehow it will work out".
Only one out of ten Poles invest
Poles are extremely careful in matters of investment. Over 40% choose a plan offered by the bank where they have an account, while only 20% look at what other financial institutions have to offer. Personal accounts (ROR), savings accounts, and term deposits continue to enjoy the most popularity. Very few people invest in Treasury bonds or funds (only 2%). Although the percentage of investors has increased in comparison with last year from 6% to 10%, it is still not a high number, stresses Tomasz Pol, Head of the Retail Products, Brokerage Services and Segments Management Division, Citi Handlowy. A positive aspect is certainly the increased trust in financial institutions and bank employees compared to last year, adds Pol.
Men vs. women in finances
Household finances are playing an increasingly important role in the lives of Poles. Men and women start discussions on this subject to the same degree. It is similar with planning expenditures, although when it comes to control, it is ladies who are the masters, contrary to popular belief. 37% of women emphasize that they control even the smallest expenditures, from food to public transport. In comparison, only one in five men do this. Furthermore, the percentage of men not attaching importance to the planning of expenditures is much higher than in the case of women.
*"Attitudes of Poles towards Saving" is a regular survey conducted by The Citi Handlowy Leopold Kronenberg Foundation and PBS using the CAPI (Computer-Assisted Personal Interviewing) method. The survey analyzes Poles' approach to questions related to saving, retirement, and investment. It is published as part of "Savings Week", a nationwide educational campaign connected with World Savings Day celebrated around the world on October 31.
