In the midst of a financial crisis it is good to know that Czechs know how to manage their money and property. Not that you would think so just by talking to people – we do grumble occasionally about steep prices and making ends meet. But according to a survey that GE Money Bank conducted in the post-communist states Czechs have a high level of financial literacy, getting the best grade in the Smart Money Index that GE uses to compare the financial behaviour of households in individual countries.
Photo: European Commission
The results of the survey indicate that more than a third of Czechs have difficulty making ends meet, though that number is less shocking when compared to the other countries monitored. In Poland 62 percent of households spend money as fast as they make it – only just making it to the next salary. People in different states also seem to have a radically different approach to money – while Russians and Latvians find it difficult to save any money, Hungarians came across as the most thifty of the nations polled. What puts Czechs ahead of the others is that they trust and take the advice of financial consultants. 35 percent of them manage their money actively. On the other hand Czechs are more closed about money matters than their eastern neighbours. Money is not discussed with the broader family, though 50% of respondents said they make joint decisions on big spending with their partners. Women control the family budget in 44 percent of Czech households and the older couples get the more common it is for women to take over the reigns of the family finances. Increasingly though young couples have separate accounts contributing to household expenses in an equal measure. Since Czechs are reportedly so good at managing money – you may be wondering how they are acting in the midst of the global crisis and the answer is – they’re spending as much as ever. Observers say this is because so far the country has been fairly sheltered from the crisis, but we are likely to get the full impact of it in a couple of months and then we’ll really have a chance to show off our financial savvy.
