Inflation hit a 30-year high in 2022, mainly due to the rise in energy prices spreading to other goods and services and making the cost of living more expensive. This has resulted in families losing their purchasing power and having more difficulty moving forward than a year ago. To find out how the Spaniards’ economic situation is and what expenses in the household area are being cut to deal with this galloping inflation situation, Línea Directa’s Homeland Security Insurer has prepared a report. ‘Spanish households versus inflation in 2022: family spending and savings in current economic scenario’ Where Spaniards analyze their savings measures in three big blocks: energy, finance and food and leisure. Among the main results, stand out 60% of Spaniards have more difficulty making ends meet than a year ago, compared to 53% in the Community of Valencia..
All Spaniards claim to experience more economic hardship than a year ago. However, there are differences according to Autonomous Communities. Navarra (70%) and Andalusia (68%) are the countries with the highest percentage of people suffering from financial difficulties. residents Valencian Community (53%), on the contrary, with them Castilla y Leon (51%) and Basque Country (54%) shows less difficulty compared to the national average.
9 out of 10 Spaniards say they have reduced their energy consumption
The increase in energy prices had a strong impact on the 2022 household budget. According to this report, 44% of Spaniards say they saw more than 20% increase in electricity and gas bills in 2022, For residents of the Community of Valencia, this figure drops to 38%. Like this, Almost 9 out of 10 Spaniards claim to reduce energy consumption at home For 42% of Valencia Community residents this past year, the way to reduce consumption was to limit their consumption to what was necessary, and 38% to adapt to the cheapest time slots.
Energy efficiency at home is still a pending task in Spain. About 70% of Spaniards are not considering reforming their homes to make them more efficient and being able to reduce costs is sustainable. The main reason for not doing this is the economic cost involved. Despite this, 14% of Spaniards have installed or plan to install solar panels in their homes, and 21% will do so, but the necessary procedures are slowing them down.
Moving the car less is also a way to protect and reduce the carbon footprint in the home. In this sense, 6 out of 10 Spaniards who own a car use their car less, prefer public transport more and 76% positively value the free train passespecially the youngest (81%) and 35% of citizens have requested or will soon.
75% of community residents go to their savings
The economic situation caused personal financial hardship. According to this study, 75% of Valencia Community residents (slightly below the national average) say they have to go into their savings at some point to make a living.. On the other hand, 2 out of 10 citizens across Spain choose to pay on credit, Only 22% of Spaniards manage to save every month, while a third save less than 100 euros per month.
One way to save money at home is to change the company of one of the sources such as telephone, electricity, bank or insurance and look for cheaper rates. And that’s what they did Half of Spaniards claiming that one of their suppliers has changed their company because of a price issue.
Citizens tend to change telephone or energy companies more often than their banks or insurance. In this final episode, 27% of Spaniards plan to change insurance company during 2023. Half of Spaniards continue to spend on insurance and 13% plan to increase their payouts for more comprehensive policies or products.
The current economic situation has also led to tightening of financial conditions affecting the family economy in housing loans. In this sense, 23% of Spaniards are considering changing their mortgage rates to a flat rate for fear of not being able to pay. Y 7 out of 10 people don’t want to change their current mortgage type due to the uncertainty of being in a worse situation than the current situation.
Food and entertainment
Christmas dinners and gifts for friends and family make December one of the busiest months of the year. However, according to this research; 58% of Valencia Community residents say they will cut their spending this Christmas. limit to food and gifts.
This intention applies not only to the end of this year, but also to the 2023 projections. 82% of community residents approve that they will reduce their leisure time spending next year.mainly in clothing, food and travel.
Citizens had to change the composition of their shopping cart, looking more at their pockets, as well as reducing their leisure time. Actually, Half of Spaniards say they changed their shopping cart in the last year. was the way to save replace original brands with white brands (22%), choose cheaper products such as frozen chicken, pork, or fish (13%) or buy less fresh produce such as beef and fish (10%).
For margarine, Línea Directa Aseguradora Director of People, Communications and Sustainability: “The current economic situation in general and inflation in particular has a huge impact on the budget of Spanish households, influencing their purchasing decisions and savings. With this report, Línea Directa Aseguradora wanted to analyze the situation of families and the spending reduction measures taken by Spaniards in 2022 in the fields of energy, finance, food and entertainment. From the Home division of the company, we pay close attention to everything that happens in Spanish homes and would like to contribute to our analysis to make the most appropriate decision for savings”.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.