SEB survey: People in Estonia look to their savings for major purchases

A survey conducted by SEB has revealed that people in Estonia prefer to use their savings to make major purchases and that 85% would use help from a bank to cover any major consumption expenditures only as a last resort. At the same time, over half of the respondents agree that it does not always make sense to use one’s savings to fund major expenditures.

“Before you make any major consumption decisions, you should analyse your available options and, initially, consider saving up the necessary amount yourself. However, this is not always a good idea or possible, since saving up would take too long or else using your savings would reduce the cash buffer that you have designated for any unexpected outlays your family may encounter. You should have savings in the amount of three to four months’ worth of expenses set aside for any unforeseen outlays; saving up this amount might take several years and make your family much more vulnerable during that period in the event of any unexpected developments. Hence, a credit solution may help when it comes to renovating your home or buying equipment,” said Katrin Laks, Head of the Financial Education Working Group of the Estonian Bank Association and sales manager for SEB savings and investment products.

“Every second respondent agrees that a small loan, hire purchase or credit card provides flexibility as you organise your finances. However, to identify the solution best suited for you, you should carefully weigh the pros and cons of the various options,” Laks added.

Respondents to the survey share the view that thorough planning is the bedrock for organising one’s finances in this day and age. Before any major purchases are made, the most importance is attached to doing one’s homework thoroughly and seeking advice from one’s friends or a consultant at a bank.

*The data used is based on an SEB survey conducted in 2016, with a total of 2861 participants.

For more information:

Maarja Gavronski
Project Manager for Communication
Marketing and Communications Division
SEB Pank

Phone +372 665 5270
Mobile +372 5656 5785
Address Tornimäe 2, 15010 Tallinn
E-mail maarja.gavronski@seb.ee
www.seb.ee

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