A quarter of Romanians have no emergency savings, Eurobarometer report shows
A quarter of Romanians have no emergency savings at all in case they lose their main source of income, compared to 16% of Europeans, according to the latest Eurobarometer data quoted by Hotnews.ro.
Approximately 20% of EU citizens have a high level of financial literacy, 64% have a medium level, and the remaining 18% have a low level, according to the Eurobarometer. However, there are significant differences between member states.
Only a quarter (13% in Romania) of respondents answered correctly to at least four out of five questions about financial knowledge. Approximately half answered correctly only two or three questions, while another quarter (30% in Romania) found the questions very difficult and were either unable to answer any question correctly or only managed to answer one out of five.
Among the highest-performing countries are the Netherlands, Denmark, Finland, and Estonia, where approximately four out of ten respondents have a high level of financial knowledge.
The majority of European respondents (65%) understand the impact of inflation and its potential consequences on purchasing power. Only 45% of respondents understand how compound interest works, despite its importance for personal financial management and long-term savings goals.
Regarding understanding investment risks, 66% of respondents correctly associate higher returns with higher risks. Only 20% of respondents demonstrate an understanding of how interest rates affect bond prices.
Approximately nine out of ten respondents in the EU agree that before buying something, they consider whether they can afford it (51% "completely agree" and 41% "somewhat agree" with this statement). A similar proportion of respondents agree that they track and monitor their expenses (49% "completely agree" and 43% "somewhat agree").
Approximately three-quarters of EU respondents report feeling comfortable using digital financial services, such as online banking or mobile payments; 36% respond as "very comfortable," and 41% as "somewhat comfortable." This figure is over 60% in all member states and is highest in Finland (95%). In Romania, 20% do not feel comfortable with digital financial services.
In the EU, 46% of respondents answer that they have (or have had in the last two years) insurance for their home or car. One in five respondents says they have (or have had in the last two years) a mortgage or home loan, and 14% respond the same for a consumer loan. Finally, 6% respond that they own cryptocurrencies (or have owned them in the last two years).
When asked how long they could continue to cover their living expenses without borrowing money or moving if they were to lose their main source of income, a third of all respondents answer six months or more. Approximately 20% say only three months, and 16% say they have no savings. A quarter of Romanians admit they have no savings, while 23% could cover their living expenses for 6 months if they lost their main source of income.
The majority of EU respondents feel "not very confident" (32%) or "not confident at all" (22%) that they will have enough money to live comfortably during their retirement years. In Romania, this percentage rises to over 60%.
(Photo source: Chattrawutt Hanjukkam | Dreamstime.com)
