2023-06-08 20:00:00
“If you look at the graph now, you think: what is going on there?” says chief economist Peter Hein van Mulligen regarding the new figures from Statistics Netherlands (CBS). Every year, the bureau asks the Dutch how they assess their finances and whether they have any concerns regarding their financial situation in the future.
In 2022, the answer, especially to the latter question, turned out to be ‘yes’ more often than in previous years, namely with 29 percent of the respondents. It is the first time that concerns have increased since 2013, when 32 percent were worried. This was due to the financial crisis and high unemployment at the time.
The war, the inflation
“The fact that money worries increased last year has everything to do with the rapidly rising energy prices,” says the chief economist of Statistics Netherlands. “Due to the Russian invasion of Ukraine, energy prices shot up in 2022. They exploded.” This was also reflected in consumer confidence. Especially in the fall. At that time, one in four households indicated that it was difficult to make ends meet. It is therefore not surprising that last year more people were concerned regarding their financial situation and future.
The figures show that especially young people and single parents are more often concerned regarding this. This is because they often have a lower income. And the lowest incomes are more worried regarding their finances (40 percent) than the highest incomes (20 percent).
Young people and single parents
How is that possible in a tight labor market? Van Mulligen: “Young people might easily find a job last year, but more often received a flexible contract, which offers less financial security.” Single parents often earn less and are relatively often on welfare. “Then you will soon be around the poverty line. In addition, people with low incomes often live in poorly insulated homes, which means that high energy prices hit them extra hard.”
The older, the less financial worries, it seems. Van Mulligen: “People over the age of seventy are of course also affected by the higher energy prices, but this target group usually no longer has any worries regarding the rest of their finances. They receive state pension and pension and the chance of a financial catastrophe is smaller at that age,” he explains. While among young people, the situation on the housing market will also play a role in the concerns that some have. “Dutch people under the age of 35 are often less satisfied with their home and cannot easily find another home.”
How is it possible that 20 percent of the highest incomes still worry regarding whether they will be able to make ends meet in the future? Van Mulligen: “Even people with an excellent income sometimes say that it is difficult for them to make ends meet. The question then becomes a bit of what they mean by making ends meet. Is that a roof over your head, heating and groceries or do you also consider an annual ski holiday part of your essential budget? That’s the subjectivity that comes with these kinds of questions.”
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