Citizens of Croatia are managing their finances increasingly better. As many as 36 percent of respondents expect an improvement in their financial situation in the next year, while 32 percent believe that their situation is better now than it was a year ago, according to a new MasterIndex survey conducted for Mastercard by the Improve agency in April this year. The average monthly disposable income of citizens has risen to 1154 euros – an increase of 119 euros compared to the previous year.
The survey shows that 80 percent of respondents report an increase in household monthly spending due to market disruptions such as the energy crisis and inflation. Notably, 31 percent indicate that the increase in costs is significant, while 48 percent say it is somewhat higher. About 16 percent of respondents spend the same as before, and only 5 percent have lower expenses.
The highest spending is on food and beverages, while the most common form of saving is shopping during sales.
According to specific estimates from the respondents themselves, Croats now have 1154 euros monthly, which includes all regular and additional personal incomes. The most funds are held by citizens aged 40 to 55, while young people aged 18 to 29 have the least, averaging 845 euros. Almost one-fifth of respondents (19 percent) from that group report having no personal disposable income, relying instead on financial support from family or partners.
The largest portion of monthly funds continues to go towards basic living needs – primarily food and beverages, with an average share of 22 percent of total monthly expenses. This is followed by expenditures on clothing and footwear (15 percent), loan repayments (11 percent), and savings and investments (10 percent). Although the amount spent on food and beverages remains the highest, there has been a decline in consumption in that category compared to last year – citizens are increasingly choosing discounted products and monitoring their shopping and consumption habits.
Most citizens are actively engaged in reducing costs and maintaining the stability of their household budget. The most common forms of saving include shopping during sales and discounts (56 percent), reducing food orders from restaurants (48 percent), and comparing prices in stores (47 percent). Citizens are also more frequently opting for private label purchases, using cheaper electricity, and even selling items they no longer use. Women are more active than men in applying these saving strategies, while men more often consider alternative energy sources.
– It is clear that economic challenges affect everyone, especially the self-employed. 26 percent of them fear business closure, while nine percent have unfortunately already experienced it. This is precisely why projects like Mastercard’s Uplift, which has been supporting small and medium-sized enterprises with education, mentoring, and digital solutions for four years, are crucial for strengthening their resilience and ultimately for growth – emphasized Gea Kariž, director of Mastercard in Croatia.
