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Financial management and financial satisfaction in Czech households
Fialová, Kamila ; Mysíková, Martina
Household financial management is a complex process in which a variety of factors play a role in influencing household financial health. These factors are primarily the level of household income and expenditure, including the way in which housing is provided, household size and structure, education and financial literacy. An important aspect of household management is the balance of the budget, which is based on the distribution of financial resources between recurrent expenditure covering basic needs, more luxurious and irregular expenditure, and possibly also savings. Budget balance affects the financial stability of a household and its future prospects. In the case of households with more members, the distribution of income within the household can be another important aspect, which can affect not only the financial well-being of individual members but also have wider implications. \nInternationally comparable Eurostat data for 2018 show that Czechs have an average level of financial satisfaction among European nations. On a scale of 0 to 10, Czechs on average rated their financial satisfaction as 6.7, while the European average was 6.6. Czech men (6.8) were slightly more satisfied than women (6.6). Since 2013, the data showed a significant increase in the financial satisfaction of Czech households from an average rating of 6.0. \nData from the 2023 IPSOS sample survey rate the financial satisfaction of Czechs as 5.5 on average (on the same scale from 0 to 10), with men again more satisfied (5.7) than women (5.3). Roughly one-third of respondents are very or rather dissatisfied with their financial situation (0-4), while more than half of respondents are rather or very satisfied with their financial situation (6-10).\nThe results of the regression analysis show that demographic characteristics such as gender, age, education or presence of children do not affect financial satisfaction. In general, people living with a spouse/partner and single individuals are more satisfied with their financial situation than those divorced and widowed. \nThe key factors influencing financial satisfaction are the amount of household income and how they manage it, as well as the accumulation of short-term or long-term financial reserves. Paying a mortgage or rent does not significantly reduce financial satisfaction. Repaying loans significantly reduces financial satisfaction for women living as a couple.\n
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