Czech households are gearing up for increased expenditures in 2024, as revealed by a fall survey conducted by STEM/MARK for Home Credit.

3 out of 10 respondents expect their income to rise alongside the anticipated uptick in costs. Despite economic uncertainties, 60% of those surveyed have no plans for significant investments, but a notable 37% are eager to seize the opportunity for a summer vacation abroad.

Housing prices in the Czech Republic have reportedly reached a low point, prompting experts to predict a reduction in interest rates by the Czech National Bank toward the end of the year.

The nation experienced the highest inflation in the EU in the penultimate week of the previous year, leading some retailers to offer discounts even before the holiday season. In response to this economic landscape, individuals have become more adept at adjusting expenses and seeking additional income sources.

Miroslav Zborovský, the ombudsman for Home Credit in the Czech Republic and Slovakia, notes that the survey indicates a shift towards more thoughtful financial planning.

People are not only considering their expenditures but are actively contemplating ways to manage and augment their income in response to the challenging economic situation.

In 2024, 66% of respondents anticipate higher expenses, while only 33% foresee an increase in income. Big investments, such as acquiring new household equipment, renovations, vehicle purchases, or real estate, will be deferred by 60% of Czechs.

A notable 28% plan to request a salary increase from their employers this year, with 25% seeking a minimal raise (up to 10%) and another 25% aiming for a more substantial change (11% to 20%).

The proactive management of family budgets is highlighted as a crucial approach to navigating economic challenges, according to Zborovský. The survey underscores the importance of identifying areas for potential savings, seeking additional employment, or negotiating for a salary increase.

Concerns about rising prices have prompted a quarter of respondents to plan and pay for their summer vacation in January. While 37% plan a summer vacation abroad, 39% of Czechs opt not to use travel agency services this year.

Zborovský advises caution in planning vacations, considering them as non-essential, luxury expenses. Waiting or opting for modest choices is recommended, with a reminder that incurring debt for such expenses is unnecessary and risky.

The STEM/MARK agency conducted the survey for Home Credit, gathering data from October 26 to November 2, 2023, through online questioning among 507 respondents aged 18 to 64.