According to the study, 46% of Finns report that they create a budget for their finances, but only 17% follow it closely. At the same time, 29% create a budget but do not monitor its implementation. Unexpected one-time expenses can strain the finances of ordinary citizens, while in recent years we have seen unexpected expenses continue. Rising prices and interest rates can weaken the economic situation, and more intentional action can help ensure that people can continue to do what they used to do.
Harri NummelaOP Financial Group’s retail banking director states: “We see that a significant number of Finns still live in a world of zero interest rates, where the interest rate has not been adjusted to reflect the rising interest rates of the moment. Therefore, now is a good time to create a budget.” Women are more likely to be active budget planners, with 20 percent reporting creating and following a budget, compared to only 11 percent of men. Young people aged 18-24 are the most enthusiastic budget planners, but the laziest when it comes to following their budget. At the same time, senior citizens are the most accurate budgeters and budget followers.
The study also found that the scarcity of resources motivates Finns to stick to a tight budget, while people with low incomes are more likely to follow their budget. This is understandable, but especially in these economic conditions, it is very important that people with high incomes also consider their income and expenses. This does not necessarily mean reducing expenses, but it can help you better understand your own financial situation when income decreases or expenses increase.
When it comes to financial knowledge, the roles of men and women are reversed. A fifth of Finns answered that they understand inflation well, 27 percent of men and 14 percent of women trust their information. This gap widens further in understanding mortgage interest rates, with 37 percent of men reporting a very good understanding, compared to less than 20 percent of women.
Nummela states: “Studies show that men tend to rate their knowledge of finances and many other things better than women’s. However, what is worrying about these results is that young people rate their financial understanding poorly. They don’t currently have to deal with things like mortgage interest rates, they have recently completed compulsory schooling where they should have been taught about finances.”
HT
Source: The Nordic Page