Study: Less than half of Romanian youth save money every month

Aurel Dragan 05/06/2019 | 12:20

Less than half of the young Romanians are saving money every month, while most of them are worried about the future. According to the Millennial Money Report, conducted by Revolut at European level, also shows that Romanians are saving 60 percent less than the young from Bulgaria and Hungary.

The Revolut analyzed the saving habits of young people from Romania and other European countries in a study carried out on a sample of over 11,000 respondents, out of which 3000 Romanians. The results show that 47.57 percent of Romanians aged between 18 and 38 years are constantly saving, while 17.11 percent fail to put any money aside.

More than 70 percent of Romanian young people say they are happy to manage their personal finances, although most (61.45 percent) worry about the financial future and find it difficult to raise money frequently. According to the data, most “millennials” save on savings accounts (47.95 percent) and cash (23.22 percent), while those who choose variants such as shares, bonds and mutual funds do not exceed 6 percent.

Those who manage to save money are doing it for holidays (38.26 percent), to purchase a home (22.27 percent) or for unforeseen expenses (10.67 percent). Over 6 percent do this for a car or to buy different devices, and the percentage of those who put money in a child account is 5.68 percent.

Generation “millennials” in Romania and pension

The pension seems to play an extremely important role for most young people. Thus, 90.6 percent claim that they are very preoccupied with receiving a pension and 71.4 percent want to receive more advice and information from the employers about pension and other similar benefits. Paradoxically, despite the increased interest in retirement income, only 5 percent of young people save for this purpose.

Young Romanians and mortgages

A higher interest can be seen when it comes to investment in real estate. Unlike Westerners, 59 percent of Romanians prefer to own their own homes, but a home is a luxury for many of them. More than half of respondents (55.81 percent) consider it very difficult to buy a first home, and more than 60 percent have difficulty accessing a mortgage, a process that it finds difficult and stressful. Even in this situation, almost 58 percent of those who want to have their own home intend to apply for a loan.

How much do young people save in the main cities in Romania?

Surprisingly, the capital is not the first in terms of the savings saved by young people, although it has the highest wages at national level. Brasov youngsters are in the top rankings, with average savings of EUR 108.69 per month, followed by Bucharest, who manage to put aside about EUR 89.25 per month. Similarly, young people in Iasi are saving EUR 86.59 per month, Cluj EUR 83.31, while in Timisoara the average is EUR 50.17.

How much do young people save in the major capitals of Europe?

According to the Millennial Money Report, Europeans who manage to save the most money on a monthly basis are the Berliners. They set aside over EUR 291 each month, being closely followed by Londoners, EUR 288 per month and Copenhagen youths, which save EUR 266 for each salary. Bucharest also saves much less than its neighbors in Budapest (EUR 177.62 per month) or Sofia (EUR 130.19).

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