100 euro test: how would Lithuanians use this amount?

The changed financial priorities of the country’s population were revealed by a representative survey of the country’s population conducted by Spinter Research in October, during which it was asked who would use the 100 euros found or available. 41 percent. respondents indicated that they would allocate them to daily necessities (3 points less than in June last year), and to 40 percent. I would like to postpone the savings (8 points more). Pleasures that gave second place to savings fell to third place: they would spend 32 percent. respondents (8 points less).

Tadas Gudaitis, director of the Lithuanian Pension and Investment Fund Association (LIPFA), which initiated the survey, says that Lithuania is no exception: a pandemic forces consumers to fundamentally rethink their priorities abroad.

“The uncertain situation regarding the pandemic and the uncertainty about the future are forcing consumers to be more conservative. According to international management consulting firm McKinsey & Company, up 40 percent in September. German consumers have recognized that they are reviewing their priorities and are willing to reduce their spending in some consumer categories. A similar portion of the US population is now also much more thoughtful about who they spend their money on. It is a global trend, the sustainability of which will be largely determined by the success of the fight against the COVID-19 pandemic, ”predicts T. Gudaitis.

Less entertainment and risk

Lithuanian consumers are cutting costs not only for entertainment, but are also less willing to participate in lotteries. If they had the money to do it, they would buy 9 percent lottery tickets. population of the country, 5 points less than in June of last year.

The fact that lotteries attract less attention in Lithuania is also confirmed by the latest data from the Gaming Supervisory Authority. In January-September of this year, the organizing companies of the big lotteries distributed 80.7 million. entries for 75.5 million. 4.8% and 8.2% respectively. less than in the same period last year. They also paid less profit, melted 8.5 percent. up to 42.4 million euros.

“Entertainment opportunities outside the home have been substantially reduced again with the second national quarantine. Certainly, entertainment money can travel to other formats: digital devices, games, and there are no obstacles to buying lottery tickets anymore, but Consumers have become more cautious and tend to curb wasteful spending for everything, ”says T. Gudaitis.

He points out that the study results show that between 15 and 9 percent. There has been a decline in willingness to donate some of the money to charities, and this negative attitude is somewhat surprising as foreigners simply feel a stronger connection to local communities due to COVID-19.

Saving becomes a priority

Savings that have risen to second place this year are becoming one of the ways money has been unexpectedly earned or received. Also, from 23 to 28 percent. increased the number of people paying attention to paying taxes, did not change by 16 percent. proportion of aspiring respondents who tend to reduce their debt in this way.

“In difficult, difficult times, personal commitment to saving is especially strong. According to data from the Bank of Lithuania, household deposits in banks since March increased by about 1.4 billion. Eur, which is almost 3 times more than the 2017-2019 average over the same period. This trend is also confirmed by data available in the US and data observed in the European Union (EU) this year. Coronavir was particularly affected by life normal at the beginning of the year, and the EU household savings rate jumped to a record 16.9% in the first quarter of this year. However, the second quarter exceeded this record, with savings rates of the households that rose to 24.6 percent. These savings activations are closely related to the general economic situation, but one wants to wait for the habit to take root and become long-lasting “, hopes T. Gudaitis.

Self-investment continues to be of interest to a relatively small part of the country’s population. Only 6 percent. respondents, or 2 points less than last year, would think about buying cryptocurrencies, gold or stocks for the money they earn.

Spinter Research conducted a representative survey of the country’s population from October 19 to 29, with 1,009 residents between the ages of 18 and 75.