06.06.2025
Only 9% of people in Estonia plan to have a separate summer budget or savings buffer, according to a Norstat survey commissioned by LHV. At the same time, one in three Estonians puts saving and investing on pause every summer or at least some summers.
People generally spend more in summer than at other times of the year. However, a Norstat survey commissioned by LHV in May showed that only 9% of Estonian people plan a summer budget or savings buffer separately. 34% of respondents think ahead but do not write down a separate budget, and a full 57% of Estonians act completely spontaneously and do not make any financial plans. The survey also found that one in three people in Estonia put saving and investing on pause every summer or some summers.
According to Nelli Janson, Head of the LHV Investor Community,it is worth preparing for periods that require higher costs earlier. “Clearly, it takes more entertainment than usual in the summer - whether it is concerts, eating out or traveling. Even meeting friends more often in the backyard and planning barbecues together can have a significant impact on a family's budget,” says Janson. The beginning of summer is also the time for various graduations, which also put pressure on the wallet and for which it is wise to set money aside earlier.
The survey found that the youngest age group, 18-29 year olds (12%), are the most likely to plan a summer budget or savings buffer. At the same time, the corresponding figure for the 60-74 age group is 6%. According to Janson, the results reflect well the consumption habits of different age groups. “There is no doubt that young people spend more on entertainment and travel in the summer than older people, whose lifestyles and spending are more stable regardless of the season,” Janson said.
She warns that not having a separate budget or a savings buffer for the summer can lead to a situation where you are living beyond your means. “Unfortunately, it is not uncommon for consumer loans to be taken out at high interest rates, opening the door to a vicious circle. The burden of debt swells, the stress increases and the person is left in an impossible situation,” said Janson. The lack of a savings buffer also makes you vulnerable to the unexpected. “Alas, none of us are safe from the end of cooperation, for example, with a refrigerator or a car. Therefore, it is always worth keeping a small cash reserve to cover unexpected expenses,” says Janson.
Saving is a habit like any other, she says, and the best results come from consistency. That's why continuing to save and invest in the summer, even on a smaller scale, is much better than taking a complete break. “There are plenty of ways to grow your money and surely everyone can find a suitable one for themselves. An increasingly popular solution is, for example, a savings account, where the person also earns a small amount of interest on the money saved. It is important to find the motivation and develop a savings habit from a young age. In this way, it is possible to keep a good balance between your expenses and your income throughout your life,” says Janson.
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