Revolut inflation finance children parents

New research by Revolut, the global financial super app with more than 2 million customers in Ireland, has delved into the impacts of inflation. The majority of people in Ireland think prices will continue to go up this year, with parents with children being most impacted compared to other household types.

Revolut recently reported that the average consumer in Ireland is spending 17.8% more, year on year. However, the survey of 1,000 people in Ireland found that 56% of people think prices will go up even more this year. In contrast, 15% think prices will go down in 2023, with 18-24 year olds being the most optimistic with 31% thinking prices will go down. 45-54 year olds are the most pessimistic as 63% think prices will increase further this year.

When asked which types of households those polled think are most impacted by inflation and high prices, 69% of people said parents with children. Despite some expenses such as children’s clothing only increasing by 5.8% year on year, the number of customers paying for child care services has gone up 185%, year on year, likely due to the relaxation of covid restrictions.

Other answers of which households are most affected by inflation include retired people (36%), students living with roommates (30%), and singles (24%). As supermarket spending has increased 14.3%, price rises are impacting all walks of life.

Furthermore, salaries haven’t kept up with inflation according to the research, as only 10% said they had a pay rise last year to match inflation. Overall, 37% of people said their salary didn’t increase last year. 21% said their salary wasn’t increased and don’t think it will rise this year either. Only 5% of people said that although their salary didn’t increase last year, they will negotiate it this year, and 7% think their salary will increase this year. However, 3% said their salary decreased last year.

24% of those surveyed said their salary had increased, but below the rate of inflation. 10% said their salary was raised last year above the inflation rate. But, the data also shows women have been at a disadvantage as 16% of men said their salary was raised above the rate of inflation, but only 5% of women said this was also the case for them too.

The research, carried out by Dynata in January, found that Dublin led the way with salary increases, where 12.8% said their salary was increased above the inflation rate in the last year. However, 28.7% of people in Connaught said their salary was not increased, and don’t think it will be in 2023.

The survey revealed that if those polled were given an extra 10,000 EUR, 15% would spend it on essentials before prices go up further. 15% would save it, 13% would put it aside in a current account they have easy access to, and 11% would spend it on experiences such as travelling.

The average person in Ireland is spending 20.7% more on travel overall, year on year. In January, spending on hotels (35.8%) and airlines (55.5%) increased, year on year. Spending on cruises increased by 144.5% and saw a 39.9% increase in the number of customers making bookings.

The rise of inflation has meant that 38% of people in Ireland are looking to save more money for a rainy day. 36% feel the rise of inflation has taught them how to consume less overall, 13% are looking to focus their money on experiences rather than material goods.

Despite the rise in the cost of living, Revolut recently reported that consumers in Ireland have boosted their generosity. Donations to charity increased by 14.6%, and 8.9% more people gave to charity in January 2023, compared to January the previous year. The survey suggests these figures could grow further, as 18% of people plan to donate more this year than in previous years.

A Revolut spokesperson said: “Our research gives insights into how the rise in cost of living is affecting the priorities of consumers. People in Ireland are ensuring that essentials and saving take precedence. However, travel and experiences continue to be sought after by consumers, as people look to visit new destinations after a turbulent couple of years for the travel industry. It’s also positive to see that as inflation rises, the generosity of people increases as many look to donate more to charities this year to help those less fortunate.”

By Jim O Brien/CEO

CEO and expert in transport and Mobile tech. A fan 20 years, mobile consultant, Nokia Mobile expert, Former Nokia/Microsoft VIP,Multiple forum tech supporter with worldwide top ranking,Working in the background on mobile technology, Weekly radio show, Featured on the RTE consumer show, Cavan TV and on TRT WORLD. Award winning Technology reviewer and blogger. Security and logisitcs Professional.

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