A large share of households in the Czech Republic would struggle to manage financially if their income suddenly stopped, according to a new survey by the polling agency Ipsos for ČPP Servis.

Research conducted in February found that nearly six in ten Czechs would have to sharply reduce spending within three months of losing their income. For many, the situation would become difficult far sooner.

About half of respondents said they would face serious financial strain within the first month without earnings. The findings underline how limited emergency reserves remain for much of the population.

Only a quarter of people reported having savings sufficient to cover more than six months of expenses. At the other end of the scale, 12 percent said they have no financial reserves at all.

The study also sheds light on how people store their money. Those who do manage to save tend to keep funds in accounts that are easy to access rather than in long-term investments.

Nearly 40 percent said they hold most of their savings in savings accounts. Another 14 percent rely mainly on standard checking accounts, which traditionally offer minimal interest and often fail to keep pace with inflation.

Investment products remain far less common. Just one in five respondents reported using instruments such as mutual funds, exchange-traded funds, stocks, gold or cryptocurrencies. Another 10 percent save primarily through pension schemes or investment-linked insurance products.

As a result, more than half of Czech households keep their capital in financial products that provide little or no real return, gradually eroding purchasing power as prices rise.

For roughly one in four participants, inflation is the main reason to invest. Concerns about sudden market declines and geopolitical tensions also shape their approach to personal finances.

Analysts say the lack of savings is not only a private matter but also an economic risk. When households have little financial buffer, they tend to cut spending sharply during periods of uncertainty, amplifying the impact of economic slowdowns.

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