Study: How much money a family in Romania needs to have a decent life

A study by the Syndex, the Institute for the Research of Quality of Life and the Friedrich Ebert Stifung Foundation shows that the value of a consumption basket for a decent living standard is RON 6,762 for a family made up of two adults and two children in the urban environment, with one child being 12-14 years old and the other 8-10 years old.

A family with two adults and one child needs RON 5,551, two adults with no children need RON 4,146, and one single adult needs RON 2,552 per month.

The minimum decent living standard is defined as having all of one’s biological and social needs covered at a certain point in time.

This includes a balanced nutrition, new clothes and footwear, housing that provides privacy and autonomy, furnished and equipped with  working appliances, the ability to pay bills, ensuring appropriate healthcare, the ability to spend leisure time at cinemas, museums and taking a holiday once per year. Another factor taken in to account is the ability to establish a savings fund to allow the family to acquire more expensive goods or cover occasional or unexpected expenses, including helping loved ones in need.

In terms of nutrition, a male individual with regular physical and intellectual activity needs at least 2,700 calories per day. Women need 2,200 calories, a 12-14 year-old child needs 1,800, while a girl aged around 8-10 years old needs 1,350 calories.

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Prices for food items were collected in markets and supermarkets in five cities – Brasov, Cluj, Constanta, Iasi, Timisoara) where the research was conducted. An average of these prices was used in the study, which led to a total of RON 1,405 for the food basket, which includes items ranging from flour to coffee.

As for the budget allocated for clothing and footware, the study found that a four-person family needed RON 650 on average per month for buying adequate clothing.

“When it comes to housing, it’s not just acquiring a home or paying monthly rent that is important, but also the quality of the homes people need to afford. Currently, the high cost of housing compared to incomes is forcing families to make certain compromises when it comes to their quality, as they end up buying homes that are too small, mainly two-room apartments with a surface of around 55 sqm, located in peripheral areas which are hard to access and sometimes lacking the usual urban services. Law 114/2016 states a four-person family living in a three-room apartment should have at least 66 sqm available,” researchers write.

A 66-sqm apartment was estimated to have a total average cost of EUR 76,692. Besides the 15 percent advance payment, an interest rate of 5.81 percent and a 30-year loan results in a monthly payment of EUR 383.

The amount needed to maintain and equip the home is RON 220, while expenses like water supply, housing taxes, etc. totals RON 476/month.

For products such as detergents, toilet paper, shaving cream, toothpaste and other similar items a family of four would need RON 273/month.

Services such as haircuts, internet, TV, transport amount to RON 488 per month; education and culture – RON 545; healthcare – RON 107; holiday and recreation – RON 234 per month.

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