Czech households report improving financial situation for third consecutive year

The financial situation of Czech households has been improving for the third consecutive year, according to a December survey by Provident Financial involving over a thousand respondents. This year, 32% of Czechs described their finances as successful, compared to 25% in 2022. Only one-fifth of households had to cut back on spending, down from a quarter last year. Fewer people are limiting their expenses on daily necessities, entertainment, sports, and holidays.

Half of the respondents expect their financial situation to remain stable or improve next year – a ten-percentage-point increase from last year. However, energy bills and summer vacations, including children’s activities, were cited as the largest drains on family budgets this year.

Nearly 12% of respondents described this year as financially successful, with excess funds being invested – five points higher than last year and seven points more than in 2022. Additionally, one-fifth of participants managed to build savings.

“The current financial situation among Czechs is improving, but both surveys and our internal data show that people remain cautious. They behave sensibly, consider investments, create financial cushions, and avoid borrowing for unnecessary expenses,” said Provident Financial’s chief analyst Petr Javůrek.