Slovakia is at the tail end of the financial well-being, we still cannot manage money and we do not save in the future
Last year, Slovakia found itself on the tail of the European financial well-being barometer. Only five countries managed to improve their overall score year-on-year.
As the executive director of Intrum Slovakia, Martin Musil, further stated, other countries experienced a deterioration, which was due to the coronation crisis and its effects on the economy. Slovakia dropped to the penultimate 23rd place in the overall ranking.
Slovakia fell into the rankings
In the first two existence of the Intrum Barometer of Financial Well-being, Slovakia placed 16th and then 17th. In the third year of its existence, however, there was a significant decline of six positions. Only Greece is behind Slovakia, which has so far closed the barometer rankings every year.
The Intrum Barometer of Financial Welfare monitors three pillars, namely the ability to pay bills, future savings and financial literacy. Within the ability accounts, this is a slight deterioration of one place. Below was a slightly higher rate of borrowing money.
Slovaks do not know how to manage
The decline in Slovakia in the total number of answers will fall by five positions in the pillar of savings in the future. Overall, the share of those who can save up to 10% of their salary each month has increased slightly. However, the share of those who do not save every month has also increased.
In the area of financial literacy, Slovakia has long been at the bottom of the rankings, ie in 19th place, and the country is failing to move higher.
Slovakia thus continues to be one of the countries with lower financial literacy. For example, the definition of the term floating interest rate cannot be correctly assigned to even half of the respondents from Slovakia.
Austria, Germany and Switzerland are the strongest players in this year’s barometer. Austria owes its location to stable household disposable income and persistently high financial literacy. For example, the annual administrative cost ratio was defined by 69% of Austrians, only 52% of Slovaks knew.
The barometer is issued by the receivables administrator Intrum. It is a tool for measuring and reviewing the financial well-being of European consumers in 24 countries. The ranking data are obtained from the European Consumer Payment Survey and the statistical economic results of individual countries.