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Attitudes to Money

Take care of the pennies and the pounds will take care of themselves has come to have more meaning in the current economic climate. Over spending, easy credit and under saving has long been the British mentality, a great deal of which is now coming home to roost, but how do the Bulgarians look at their income?

Interestingly the Bulgarians have a similar old adage but it seems as if they follow the saying more closely, taking care of the little things so that they add up to big things.


A survey by Industry Watch has shown that within the eurozone people keep only 34% of their money in actual cash or on deposit at the bank. However, the Bulgarians keep 88% of their money in this way.

The report goes on to say that deposits form the biggest asset in the financial wealth of the Bulgarians. Their growth rate stands at 28%. Some of the growth in deposits has come from new deposits, new wealth or re-channelling of financial resources from other forms of saving. Some 76% of all financial wealth is invested in housing. Bulgarian people have the highest home ownership in the EU, the majority owning their property outright with no mortgage.

It is this attitude to saving which means that Bulgarians are less exposed to risks and losses during any economic/financial downturn, particularly compared with Britons who are usually maxed out with mortgages, loans and credit cards. Bulgarians have only 12% of their money tied up in any "speculative" financial way.

The emerging middle class in Bulgaria - those earning more than 400 euros a month - are taking a long term view on their money. The majority saving for their children's education, property purchases and higher general standard of living. Those on lower incomes usually save more so that they have something in hand for any unforseen problems. No wonder many Bulgarians feel unaffected by the "credit crunch". They seem to possess more sound reasoning!

The Bulgarians are much more circumspect than their neighbours in the eurozone and the USA and are now reaping the reward, taking high returns on their deposit accounts with banks offering as much as 10% interest, not to mention that barely anyone has a mortgage to pay.