Poland‘s young adult population faces significant challenges when it comes to financial stability, a new report from BIK, the Polish credit information bureau, and ANG Group has found.
It found that close to three quarters of young adults in Poland do not feel financially secure, a lack of security that stems from several factors, including insufficient savings – the study noted that 30% of respondents only have enough savings to last them three months.
A lack of financial stability was also cited, with 62% of young adults indicating that they didn’t feel ‘financially stable’.
Economic uncertainty
“On the one hand, it is a result of the uncertainty related to maintaining a job, and on the other hand, macroeconomic issues that may significantly affect the value of money held,” commented Dr. Hab. Katarzyna Sekścińska, an expert from the University of Warsaw.
Another concern for young adults, she noted, involved the “financial challenges they face, which often seem almost or completely unattainable, e.g. buying a flat or a house”.
Young adults in Poland are also more willing to borrow money to make a necessary purchase, rather than to purchase a product they like but not necessarily need, the study found.
Many are turning to credit firms and loan providers – according to BIK data, the youngest group of borrowers, i.e. those up to 24 years of age, has loans worth over PLN 9 billion (€2.1 billion).
Read more: Poland’s population set to decrease by 12.7% by 2060: study
Obtaining funds
Some 84% of young people say that they face challenges in obtaining funds to achieve their goals, and use some sort of external financing as a result.
More than half (54%) turn to family or friends, while close to half (48%) have a credit card.
In addition, the report highlights a concerning lack of awareness among consumers regarding the terms of ‘Buy Now, Pay Later’ (BNPL) purchases.
Many respondents do not fully grasp that BNPL transactions constitute a form of loan, and few understand the consequences of delayed payments.
“Young adults should be careful and aware of the consequences of this way of financing their own needs. That is why we raise awareness and educate young people,” commented BIK’s Małgorzata Bielińska.
BIK’s study, Young Adults: Approach to Finance and Debt was conducted as part of a collaboration between BIK and the ANG Group. It took place at the end of 2023 and involved a nationwide sample of 1,023 adult Poles, aged 18-35.
