The situation is dire: Hungarians are finding it harder to survive financially

Hungarians are finding it increasingly difficult to make ends meet, with 27 percent of the population unable to save any money at all. The situation is deteriorating year by year and ranks poorly in an international comparison of nine countries, according to a survey commissioned by Provident Financial Ltd.’s parent company.

The findings point to a worrying level of financial vulnerability that carries not just economic but also social consequences. For many, an unexpected expense or sudden loss of income could already trigger a serious crisis.

Half of Hungarians struggle to save

According to the representative study commissioned by International Personal Finance (IPF), nearly half of Hungarians — 47.7 percent — are able to save only up to 20 percent of their income by the end of the month.

The outlook is especially troubling for those unable to save at all: 27.1 percent of respondents live paycheck to paycheck. That number has been steadily rising — from 21.1 percent in 2022 to over 25 percent in 2023 and 2024 — reaching 27.1 percent this year. By comparison, on other European markets where Provident operates — including Poland, the Czech Republic, and Romania — an average of 18.6 percent of the population cannot put money aside.

Gender disparities also emerged: 32 percent of women reported being completely unable to save, compared to 20 percent of men. Across every measured category, men outperformed women in saving ability, likely due to ongoing inequalities in the labour market.

Younger people saving more

Among 18–34-year-olds, 36 percent said they manage to save more than 20 percent of their income, though 15 percent in this group said they couldn’t save anything at all. Meanwhile, half of middle-aged respondents (35–54 years old) save less than 20 percent of their income, and a quarter are left with nothing by the end of the month. Nearly 40 percent of those over 55 reported being completely unable to save.

The results also underscore wider social disparities. Women, people with lower educational attainment, rural residents, and older adults are significantly more likely to fall into the category of non-savers.

Notably, while 34.3 percent of rural residents said they cannot save at all, the figure is still a concerning 22 percent among residents in Budapest. The survey also revealed large differences in how frequently people manage to save.

The largest segment — 32.4 percent — consisted of those who weren’t able to save every month or most months, but did put money aside occasionally when they could. This suggests that while many lack the means for consistent saving, they are still making efforts to improve their financial positions when possible.

Many unable to save at all

Some 29.2 percent of Hungarians reported saving nothing at all over the past year. This highlights the challenges posed by the changing economic environment and the increasing cost of living, which continue to hinder the ability to save. This group is particularly vulnerable, as they face complete exposure to financial emergencies.

About 20.8 percent of respondents said they tried to save each month or most months, though the amount varied, indicating less structured saving habits. Only 12.6 percent consistently saved a predetermined amount monthly — the most effective strategy for achieving long-term financial stability.

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