OREANDA-NEWS. November 03, 2009. According the latest DnB NORD Barometer, which measures financial behaviour attitudes in Lithuania, in spite of the current economic situation in Lithuania, almost half (48 percent) of Lithuanian residents with children are still putting aside savings for their children, reported the press-centre of DnB NORD.

However, only one fifth (20 percent) of the respondents make such savings on a regular basis, while 28 percent say they set aside a certain amount for the children’s future education only when they have money left over to do so. 52 percent of Lithuanian individuals with children put no savings for this purpose.

DnB NORD Barometer also noted that fewer were reporting reductions in their salary, when compared to June. In September 19 percent of those surveyed indicated a decline in their household income, while 79 percent said that their income remained stable over the last month, and only 1 percent indicated a growth in their household income. The opinion poll carried out three months ago revealed 75 percent of inhabitants with a stable income, while 22 percent of respondents indicated a declining income.

“One possible explanation for the increasing number of parents saving for their children’s future could be the ongoing education reform. Obviously, in these times of economic recession, many parents may find it hard to allocate money for these sorts of savings, explaining why the total number of individuals who make regular savings for the child future purposes remains low,” says Indre Genyte-Pikciene, Senior Analyst with DnB NORD Bankas Economic Research Group.

According to the DnB NORD Barometer, the level of savings for a child’s future intensifies around the child’s 7th birthday, with further intensification of those putting aside money when the child is 10, and again after the child’s 15th birthday. Most frequently these savings come from normal disposable income (68 percent), with 19 percent of the respondents indicating they have taken out children’s endowment insurance.

Compared to DnB NORD Barometer results received in June, the number of individuals making regular money transfers to an account for their children’s future has increased from 6 to 11 percent. Only 8 percent of those surveyed indicated their child holds a payment card account whereto a certain amount is transferred on a regular basis.

The recession is impacting the amount parents are spending on their children, with 29 percent indicating they have cut down on these expenses 1, and 11 percent admitting they reduced the amount they put aside for their children’s future. However, compared to the DnB NORD Barometer data for June, fewer respondents reduced expenses for entertainment for their children (44 percent, while in June the number accounted for 54 percent). The number of parents who increased spending on their children has grown from 10 to 17 percent.

“Both the opinion poll and the data of the Statistics Department reflect the increasing expectations of individuals during the recent month. However, better estimations of the future should not diminish the individuals’ precaution in planning their family budgets as it is still recommended to be conservative. It is obvious that the risk of unemployment is not going to decrease in the coming months,” says Indre Genyte-Pikciene.

DnB NORD Barometer is based on research conducted by Spinter Tyrimai, which surveyed 1007 residents of Lithuania, aged 18-75.

1 i.e. for clothing, food, school supplies, etc.