Finns less successful in managing their finances

28.06.10 8:30 | Lehdistötiedotteet

According to a survey conducted by Nordea, Finns have become less successful in managing their finances. Last year as many as four respondents out of five thought that they handled their money matters well. Now only two-thirds of Finns say that their finances are in order.

- The difference to last year seems big, but it may be partly explained by the fact that this year the survey was conducted using an Internet panel instead of a telephone survey. On the other hand, those questioned were narrowed down to persons between 18 and 65 years of age, whereas last year the range was 15-70 years, says Anu Numminen, Nordea’s Private Economist.

One in five is broke before pay day
One in five respondents said they had their spent their entire pay before the next pay day. In particular, young adults and families with children were penniless just before their salary payment. Notably households earning less than 30,000 euros a year were having sleepless nights because of financial worries; almost one in four said they had had trouble sleeping more than once during the previous month.

- One in ten of all respondents said they had received payment reminders, while 6 per cent think that they cannot manage their own finances anymore. This is deeply worrying, Anu Numminen says.

The respondents classified in the group managing their own finances poorly comprised those who had chosen at least two weaknesses and who felt that they are not able to handle their money matters well. These households were characterised by the following features:

  • Earnings were less than 30,000 euros a year, especially less than 10,000 euros a year.
  • They are often in the age group 18-29.
  • More than half answered that they had been unable to sleep more than once in a month.
  • More than half said that they had received payment reminders.
  • Almost four out of five said they were broke before the next pay day.

 

Measures to manage one’s finances
The respondents who were having problems in managing their finances were also asked which measures they had taken to deal with their money matters. One in five answered that they had drawn up a budget. Almost one in four said they had started saving regularly. In light of the survey, men seem to be slightly more active in trying to improve their financial situation than women.

- When it comes to money matters, it is easier to take preventive steps to avoid the problems, and in the end it is less expensive, too. If your financial worries are keeping you awake at night, take the bull by the horns and work out your situation with a budget. If necessary, seek help from your local bank, says Anu Numminen, Nordea’s Private Economist.

The survey was carried out by Synovate in early May. They interviewed 1,064 persons between 18 and 65 in Finland.

For further information:
Anu Numminen, Private Economist, tel +358 9 165 42653
Anni Kuusisto, Press Officer, tel +358 9 165 42653