Households spend significantly less on doctors and cars

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In just twelve months, the world turned upside down for Swiss households: in the spring of 2022 the federal government declared the Covid pandemic over. The economic engine was running, household income was growing rapidly, and the population was extremely willing to spend. Just a year later, almost no trace. Household incomes in the first quarter stood at a median of CHF 7,093 per month, a multi-year low. This means that half of the households earn more and the other half earn less.

In the spring of 2022 it was still CHF 7,977. People are more worried about inflation. As the latest figures from the Federal Statistical Office show, you also save on a large scale.

In the first quarter of 2023, households spent only 4023 francs per month on their consumption, calculated excluding taxes, social security contributions and health insurance premiums. This means that they are significantly more parsimonious than during the pandemic years. A year ago they were consuming 4713 francs a month.

Households save on health

Households save particularly heavily when it comes to healthcare expenditures. Within a year these fell from 355 francs to 137 francs a month, and dentists and general practitioners felt it too. A year ago, households left them 143 francs a month. Now it’s only 43 francs. “Especially in the health sector, saving is dangerous. “People don’t go to the doctor because they can’t afford it,” says Philipp Frei, 38, managing director of the Budgetberatung Schweiz umbrella organization. This can take revenge twice: “The result can be detrimental to health and significantly higher costs as a result.”

Another reason for not wanting to go to the doctor is in compulsory basic insurance: health insurances have increased their premiums by an average of 6.6 percent this year. As a result, more people than ever before have changed their health insurance. You can save a lot with a cheaper insurance model. And also with a higher franchise. Therefore, households spend CHF 697 per month instead of CHF 736 at the cash register a year ago. However, if you increase the exemption and you do not have money, you can do without going to the doctor.

“The number of working poor is increasing”

It is not surprising, therefore, that Frei spoke of “very high demand” for budget advice. “People are restless and the number of working poor is increasing. More and more people working full time can’t really live on their salary.”

Many households are also minimizing the costs of their cars: They only put 27 francs on the table for service and repairs – 42 percent less than in the previous year. Spending on all mobility fell from 666 to 512 francs in twelve months. There are also savings on fixed line connections and mobile phone subscriptions or household appliances. Then the old mixer needs to do this a little longer.

Households put significantly more money aside

A 30 percent cut was made in monthly expenditures, which was 320 CHF per month in the field of entertainment, recreation and culture, compared to the previous year. Households also reduced their spending on food and soft drinks by 1.8 percent to 595 francs per month. That’s despite food prices being hit hard: potatoes rose 14 percent, sugar 16 percent, foreign eggs 36 percent and Gruyere cheese 9 percent.

The consumer mood among many people is good. Households spend an average of CHF 2,401 each month, 441 CHF more than a year ago. Those who can save for even more difficult days in uncertain times.

Source :Blick