SPENDING IN RELATION TO OTHER COUNTRIES

  • Bulgaria
    204 86%
  • Croatia
    171 72%
  • Latvia
    117 50%
  • Romania
    117 49%
  • Australia
    101 43%
  • Grand Total
    100 42%
  • Germany
    98 41%
  • Norway
    88 37%
  • Finland
    80 34%
  • Estonia
    79 33%
  • Sweden
    74 31%
  • Denmark
    69 29%

How did Corona Virus affected your employment situation?

  • I am still employed and no change in my salary
  • I am still employed but got a reduction in my salary
  • I lost my job and am currently unemployed
  • My job agreement is on pause and I receive government payment support

How did Covid-19 affect your life?

  • I canceled all my traveling plans this year
    3.8
  • Given the economic situation, I need to be careful how I spend my money
    3.8
  • I started to enjoy and appreciate more the little things
    3.7
  • I cut back on my spending
    3.4
  • Keeping in touch with friends and family helped me get through the isolation much easier
    3.4
  • I fear about another Covid-19 wave
    3.3
  • I developed new hobbies and healthy habits during this period
    3
  • My monthly income have been affected/ Lower salary
    2.6
  • My menthal health suffered during Covid-19
    2.5
  • I am concerned about losing my job
    2.5
  • My ability to work have been reduced because of Covid-19
    2.4
  • I managed to do some savings during this Covid-19 period
    2.1
  • My family and friends health have been affected by Corona Virus
    2.1

Favourite activities during Covid-19 isolation:

  • Watching TV
    15%
  • Talked to friends/ family
    13%
  • Spending time outdoors
    11%
  • Online streaming (e.g. netflix)
    10%
  • Reading books
    7%
  • Social Media - Tik Tok, Instagram
    7%
  • Playing online games
    6%
  • Working remotly 
    6%
  • Remote learning with your kids
    6%
  • Online shopping
    6%
  • Developed new hobbies (meditate, etc)
    5%
  • Social games (puzzle, monopoly..)
    4%
  • Non-gift clothing for yourself or family
    3%
  • Online fitness
    2%

Household spending forecast 2020

  • Less than last year
    66%
  • Same as last year
    26%
  • More than last year
    8%

2020 Big spenders

When it came to the countries that plan to spend the most during 2020 relative to disposable household income, Bulgaria ranked the highest with results showing 86% of monthly income will be spent during the Summer months in Europe (June, July, August). Croatia followed with a result of 72% and Latvia came in third at a 50% monthly expenditure.

Nordic countries (Sweden 31% and Denmark 29%) are set to be the most frugal, with the data revealing that an average of only 30% of monthly income will be spent by residents over the coming three months.

Australia ranked fifth on the scale, with results showing we plan to spend 43% of our monthly salary over June, July and August. This lower figure may be reflective of our spending during the winter months or the impact of international travel restrictions, according to James Logan, Ferratum Australia Country Manager.

“With non-essential travel bans still in place for overseas our data shows that many Australian’s have cancelled they travel plans, with 70% of Australian respondents indicating that they do not intend to travel in 2020. It remains to be seen if Australian’s will replace European travel plans with local ones as this may impact our spending choices.”

 

Spending less, saving more

28% of the total survey respondents indicated they are planning to spend a maximum of only 200 Euro (approximately 330 Australian Dollars) over the next two to three months and 12% will spend around 1,300 Euro (approximately 2,120 Australian Dollars). Only 3% of respondents across the 11 countries indicated they would spend more than 3,000 Euro (approximately 4,890 Australian Dollars) over June, July and August.

Australia ranks higher than average, with 61% of respondents planning to spend over approximately 2,000 Australian dollars (1,200 Euro) over the next two to three months.

45% of the total respondents plan to use savings to cover expenses over the next three months, while 31% have indicated they will cover costs with a Ferratum Loan.

Australian respondents indicated that 55% of spending will be covered by savings over the coming three months, and 21% indicated they will cover costs with a Ferratum Loan.

 

Biggest spending during COVID-19 isolation

When asked what they spent their money on the most during isolation, more than 50% of respondents stated groceries (52%) were their main expense, followed by home improvements (13%), clothes and shoes (12%) and personal care products (10%). People also supported local businesses and made the choice to order food takeaway from restaurants (7%).

Australia’s results aligned with international spending, with groceries (54%) taking the top spot for expenses outlayed during the pandemic. This was followed by ordering food from restaurants (14%), clothes and shoes (10%) and personal care products (10%).

“Australian’s continue to spend heavily on groceries and online food orders. With pubs and cafes around the country reopened, it will be interesting to see if our eating and spending habits stay aligned in this way. As winter approaches in the southern hemisphere I think we are likely to see people continue to eat at home, and the data supports that to an extent.” Said James Logan

How much do you think you will spend during next 2-3 months?

  • 0-200 €
    28%
  • 201-400 €
    15%
  • 1201-1400 €
    12%
  • 401-600 €
    12%
  • 601-800 €
    7%
  • 801-1000 €
    5%
  • 1401-1600 €
    5%
  • 1001-1200 €
    3%
  • 1601-1800 €
    3%
  • 1801-2000 €
    3%
  • 2001-3000 €
    3%
  • 3000 € +
    3%

Biggest spending for the upcoming months:

  • Groceries
    23%
  • Home furnishings
    11%
  • Financing children’s needs
    10%
  • Domestic travelling
    10%
  • Gardening or DIY
    9%
  • Non-gift clothing for yourself or family
    9%
  • Clothing and fashion
    7%
  • Electronics for home
    5%
  • Social activities
    5%
  • Well-being services, spa
    3%
  • Attending events
    3%
  • Travelling abroad
    3%
  • Fitness ecquipment for home
    2%
  • Luxury products
    1%

Online vs street shopping:

  • Traditional shopping (street shopping)
  • Online shopping

When doing online shopping what payment method do you choose?

  • Online card
  • Cash payment on delivery
  • Kontanter betaling ved levering

Most money spent during isolation when doing online shopping:

  • Groceries
    52%
  • Home acquisitions
    13%
  • Clothes and shoes
    12%
  • Personal care products
    10%
  • Ordering food from restaurants
    7%
  • Toys for kids
    3%
  • Fitness or sport accessories/equipment
    2%
  • Social games such as monopoly
    1%

Canceled of delayed 2020 plans because of Covid-19:

  • International traveling
    25%
  • Buying home apparel
    20%
  • Buying a car
    15%
  • Domestic traveling
    12%
  • Buying a house/ appartment
    10%
  • Buying a smartphone
    9%
  • Buying clothes/ fashion accessories
    9%

First thing after isolation/ what was missed the most:

  • Visit my family
    18%
  • Meet with my friends
    16%
  • Restaurants/ Terraces
    10%
  • International traveling
    9%
  • Movies, theaters, concerts
    9%
  • Domestic traveling
    8%
  • Go to the seaside
    8%
  • Outdoor shopping / shopping center
    6%
  • Drinks / pubs/ clubs
    5%
  • Outdoor sport
    4%
  • Spend time in beauty salons
    4%
  • Go to the office
    3%

How are you going to finance your spending?

  • With savings
  • Partly with Ferratum Loans
  • Partly with consumer credits
  • Partly with credit cards
  • Partly with loans from other financial institutions

What's the reason you didn't take a Ferratum loan lately?

  • I didn't need money
  • I am concerned that I couldn't pay it back
  • I spent much less money lately
  • I got financial support from friends and family
  • I took a loan from other financial company

How important is for you the topic of sustainability & social responsibility:

  • Very important
  • Somehow important
  • Rather not important
  • Not at all important

Would you personally be willing to contribute into sustainability-related initiatives:

  • Most likely would
  • Most likely would not
  • Definitely would
  • Definitely not

Cash losing ground as online payments are increasing

Online payments are preferred by 52% of survey respondents, 25% still use cash on delivery and the other 22% opt for bank transfers when ordering online.

Australia (79%) is the second most digitalized country in the world when it comes to online payments, closely following Norway (86%).

 

Online vs physical shops

COVID-19 and the lockdown has had a significant impact on our preference to shop online in comparison to previous years. 68% of survey respondents answered that for the upcoming months they will opt to continue to shop online (68%) instead of partaking in traditional shopping (32%).

Australia’s results contrasted, with 60% of respondents stating they would choose to commence traditional shopping methods again of visiting physical stores, once the option becomes available.

 

Future spending – June, July, August 2020

Respondents from all 11 countries will spend the most money on the following four areas: groceries (23% of the budget), home furnishing (11%), financing children’s needs (10%) and domestic travel (10%).

All countries except Estonia stated that groceries would be their biggest expense over the coming months.

In Australia, 28% of our budget will likely go to groceries, followed by home furnishings (9%), financing children’s needs (9%) and gardening or DIY (9%).

“Ferratum’s Barometer provides insight into the way our lives have been impacted due to COVID-19. Australians’ projected spending’s are significantly different this year in comparison to last. While we are accustomed to seeing international and domestic travel as some of our key expenses, this year the bulk of our money will go toward groceries and home furnishing. As COVID-19 restrictions begin to ease we expect our spending behaviours to shift again, and these findings will be reported on in our end of year survey”, concluded James Logan.

Top spending behaviour:

Australia
  • Groceries
    28%
  • Home furnishings
    9%
  • Gardening or DIY
    9%
  • Financing children’s needs
    9%
  • Domestic travelling
    4%
  • Spending in relation to other countries: 101 (FE group = 100)
  • Spending relative to household income: 43% (1425 €)
Bulgaria
  • Groceries
    22%
  • Financing children’s needs
    12%
  • Domestic travelling
    11%
  • Home furnishings
    10%
  • Electronics for home
    7%
  • Spending in relation to other countries: 204 (FE group = 100)
  • Spending relative to household income: 86% (715 €)
Croatia
  • Groceries
    31%
  • Financing children’s needs
    15%
  • Clothing and fashion
    11%
  • Home furnishings
    9%
  • Gardening or DIY
    8%
  • Spending in relation to other countries: 171 (FE group = 100)
  • Spending relative to household income: 72% (766 €)
Denmark
  • Groceries
    19%
  • Domestic travelling
    13%
  • Gardening or DIY
    10%
  • Social activities
    10%
  • Financing children’s needs
    9%
  • Spending in relation to other countries: 69 (FE group = 100)
  • Spending relative to household income: 29% (1075 €)
Estonia
  • Domestic travelling
    17%
  • Groceries
    14%
  • Non-gift clothing for yourself or family
    10%
  • Gardening or DIY
    10%
  • Financing children’s needs
    9%
  • Spending in relation to other countries: 79 (FE group = 100)
  • Spending relative to household income: 33% (569 €)
Finland
  • Groceries
    28%
  • Domestic travelling
    13%
  • Gardening or DIY
    12%
  • Financing children’s needs
    9%
  • Non-gift clothing for yourself or family
    8%
  • Spending in relation to other countries: 80 (FE group = 100)
  • Spending relative to household income: 34% (1219 €)
Germany
  • Groceries
    22%
  • Gardening or DIY
    12%
  • Clothing and fashion
    11%
  • Domestic travelling
    9%
  • Social activities
    9%
  • Spending in relation to other countries: 98 (FE group = 100)
  • Spending relative to household income: 41% (1131 €)
Latvia
  • Groceries
    21%
  • Home furnishings
    18%
  • Gardening or DIY
    13%
  • Financing children’s needs
    12%
  • Non-gift clothing for yourself or family
    9%
  • Spending in relation to other countries: 117 (FE group = 100)
  • Spending relative to household income: 50% (635 €)
Norway
  • Groceries
    22%
  • Domestic travelling
    15%
  • Social activities
    10%
  • Home furnishings
    8%
  • Gardening or DIY
    8%
  • Spending in relation to other countries: 88 (FE group = 100)
  • Spending relative to household income: 37% (1310 €)
Romania
  • Groceries
    23%
  • Non-gift clothing for yourself or family
    15%
  • Domestic travelling
    11%
  • Clothing and fashion
    10%
  • Home furnishings
    7%
  • Spending in relation to other countries: 117 (FE group = 100)
  • Spending relative to household income: 49% (492 €)
Sweden
  • Groceries
    24%
  • Domestic travelling
    13%
  • Social activities
    10%
  • Gardening or DIY
    9%
  • Home furnishings
    8%
  • Spending in relation to other countries: 74 (FE group = 100)
  • Spending relative to household income: 31% (1029 €)