25% of Romanians are left completely broke after covering basic expenses

Newsroom 03/02/2014 | 14:00

Over a quarter of Romanians run out of money after paying for basic expenses. The rest use their extra money for paying off debts (30%), savings (26%) or shopping (23%), according to a Nielsen study.

At the same time, 19% invest in their home, 17% use the remaining money for going out, 16% for holidays and 13% buy new gadgets.

Only 4% of Romanians use their money to pay for a private pension and only 1% invest in stocks.

How do Romanians’ financial priorities compare to the European standard?

22% of Europeans are left without any money after paying their basic expenses, an average that is slightly better than the Romanian percentage.

Most Europeans use the extra cash they are left with to supply their savings (33%). 30% of Europeans buy new clothes, 27% go on holiday, 25% pay their debts and 23% pay for entertainment outside of home. According to the study, Romanian spending priorities fall in line with the European average when it comes to investing in the home (20%) and buying new IT products (15%).

“The results show that the intention to spend – compared to higher income European countries – is more reduced in Romania when it comes to entertainment and holidays. Prioritizing discretionary spending is very clear when we observe Romania’s results in terms of home investments and IT purchases. There are two fundamental poles in our society at the moment: the static consumer segment and the dynamic segment, which years for modernity”, according to Catalina Laschon, Consumer Research Department Director for Nielsen Romania.

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