The pandemic cuts through people’s finances: they are afraid of losing their jobs, they no longer want to maintain the bans

Jūratė Cvilikienė, director of the Swedbank Financial Institute, said at a press conference Thursday that during the second quarantine, the proportion of the population that felt the impact of the coronavirus on their income increased slightly (3%) compared to the first quarantine. in March of last year. . Still, as he said, despite difficulties with income, the mood of the population is improving.

“It is interesting that when the pandemic does not subside, the number of people who do not feel its influence increases: 5% of those surveyed. Points more than last year. We also see fewer people worried about the future, so it seems that during the second pandemic, Lithuanians feel a little calmer because of personal finances, ”said J. Cvilikienė and said the second quarantine can be compared to a second child.

“In general, the quarantine is already like a second child, clearer, not so much anxiety,” he added.

The most feared job loss

According to a study, the population is more concerned about the consequences of a possible job loss: 5 out of 10 respondents are worried about it and those who do not feel anxiety at all.

“A quarter of people felt safe in the workplace last year, and this year the figure will increase to a third or 34 percent. So it seems that people are starting to see a breakthrough in the situation. from quarantine or is accepting the situation and looking for solutions, “said a representative from Swedbank.

According to her, the greatest impact of the pandemic on their finances is currently felt by lower-income workers, less-skilled workers, the unemployed and students. As income and skills increase, the impact of a pandemic on income decreases.

The study revealed that the greatest impact of the pandemic on finances is felt by people who earn up to 300 euros and work in the accommodation and restaurant services, arts and entertainment, commercial sectors, and the smallest, in the construction sectors , industry and education. Rural residents are also less likely to feel the effects of a pandemic than those who live in cities or county centers.

“Lithuanians are very concerned about problems related to financial obligations, such as difficulties paying a home loan, worrying about supporting themselves or other family members, lack of savings, loss of income or loss of employment. Last year, the average level of anxiety about these aspects was 3.7 points out of 5, and this year this number dropped to 3.5, so the population is beginning to feel really calmer, “said J Cvilikienė.

Use prohibited services

The study found that the most common “lesson learned” during a pandemic was the accumulation of savings and a financial reserve that would allow at least a few months of survival without income.

“The importance of saving was evaluated at an average of 7 out of 10 last year and this year. Like last year, people also understand the importance of good health, and the proportion of the population that emphasizes the need Responsible borrowing has increased by 5% points, ”said J. Cvilikienė.

According to the study, the second wave of the pandemic also changed people’s attitudes toward restricted services, by as much as 40 percent. Respondents stated that they would secretly use, actually or potentially, the services of hairdressers, estheticians, trainers, massage therapists, and other services currently prohibited if the quarantine was extended.

“People are tired and they may no longer understand some of the limitations,” he said.

The proportion of the population categorically opposed to such a possibility decreased by 5%. points.

“4 out of 10 Lithuanians indicate that they would be willing to use or actually use today’s limited services. On the one hand, it confirms that people’s patience is waning, but at the same time it is often related to the desire to help others. entrepreneurs who are more difficult by quarantine, even if it poses a risk to their health and the health of those around them, ”said J. Cvilikienė.

According to a representative of Swedbank, part of the population did not hide that the quarantine and the relocation of many activities to the “distance” brought new challenges.

“34 percent. Lithuanians had to invest extra money in quality distance education for their children, and the income of a fifth of surveyed parents decreased, they could no longer work full time due to childcare”, commented the expert.

Save money, invest in real estate

Like last year, this year’s quarantine has prompted people to reconsider their attitudes about personal finances and take appropriate action.

“We just realized that we saw two groups affected differently by the pandemic. Some who have had limited access to work or cannot work remotely are happy to cover at least the necessary costs, while those whose income has remained stable and consumption has declined have had the opportunity to raise funds. He managed to make 45 percent. population, ”says J. Cvilikienė.

According to the results of the study, respondents with higher education, representatives of the highest income group and residents of metropolitan areas achieved greater savings. Most often, people reserve accumulated funds for long-term savings, invest, others plan to spend them already after quarantine. Only 12 percent. He decided to spend the “free” funds right away.

J. Cvilikienė said that currently economists are more closely monitoring events in the real estate market (RE).

“Builders are starting to talk that there may be a deficit, it seems that the acquisition of real estate is not the first time that our Lithuanians see an insecure period in which they want to invest their funds in something tangible, so the acquisitions of Homes, farms, are now at a high level, “he said. hee

A representative survey of the Lithuanian population in 2021 was carried out in January by the research company Spinter tyrimai. During the meeting, 1,017 Lithuanian residents between the ages of 18 and 75 were interviewed.