The incomes of Vilnius residents grew the fastest among the residents of the Baltic capitals, while the necessary expenses were the lowest

“In the past three years, household incomes have risen in all the capitals of the countries, but the growth of incomes was the highest in Lithuania. Today, the average disposable income of a family of four in Vilnius is 3,126 euros. In terms of income, Vilnius residents are in the middle of their Baltic neighbors: in Tallinn, the same household has an average income of 3,576 euros per month, and in Riga – 2,655 euros per month,” says Justina Bagdanavičiūtė, Head of Financial Education at Swedbank.

In Vilnius, over the past three years, the wages of an average-wage family with two children have increased by 42%, while in Riga the growth of wages after taxes with two dependents reached 29%, and in Tallinn it was the most moderate – 24%.

As J. Bagdanavičiūtė observes, the growth of households’ disposable income was influenced not only by rising wages, but also by the increase in the so-called child money, which has increased from 70 to 96.25 euros per child in Lithuania over the past few years.

The survey of main household expenses conducted by Swedbank shows that of all the residents of the three capitals of the Baltic States, the residents of Vilnius experience the least necessary expenses for food, housing and transport. This amount amounts to 817 euros per month and is 26 percent. from the income of one household.

In Estonia, all necessary household expenses amount to 997 euros and account for about 28 percent. of income, in Latvia – 988 euros, “eating up” as much as 37 percent. family income.

“In all Baltic countries, the largest part of necessary expenses for a statistical family is food. Vilnius residents spend an average of 544 euros on food per month – 23 percent. more than 2021 Meanwhile, in Riga, the food basket grew by 32 percent. up to 640 euros, and in Tallinn – as much as 37 percent. up to 737 euros”, says J. Bagdanavičiūtė.

The wallets of the residents of all three capitals were also drained by the significantly increased housing maintenance costs. The highest family expenses for communal taxes, which increased by 60 percent, were recorded in Riga – 288 euros per month. In Tallinn, these costs amount to 260 euros and are almost 50 percent. higher than in 2021, and in Vilnius, which has increased by 68%, – 209 euros per month.

Only transport costs are slightly more expensive for Vilnius residents. Assuming that the family travels only by public transport, a family of four in Vilnius spends 64 euros, residents of the Latvian capital – 60 euros, and residents of Tallinn use public transport for free.

As shown by the analysis of the income and necessary expenses of households in the capitals of the Baltic States, after paying for food, utility bills and transport, residents have a considerable amount of money left over. After deducting the necessary expenses, about 74 percent remains for the households of the Lithuanian capital. income. Three years ago, this share was 71 percent. 72 percent remain for Estonian residents. funds – 4 percent points less than in 2021. In Latvia, the share of “free” funds is 63 percent. and is 1 percent. point higher than three years ago.

The inhabitants of Tallinn, after covering the necessary expenses, have 2,579 euros at their disposal, and from 2021 this amount increased by 391 euros, the “free” funds of the Vilnius family reached 2309 euros and grew the most among the Baltic neighbors – by 732 euros. The figures of the residents of Riga are the most modest – they have 1,667 euros, 411 euros more than in 2021.

“We see that after covering the necessary expenses in all three countries, the amount of freely available funds in the family budget is very similar to three years ago. And although price growth has “eaten up” increased salaries, it is good that the situation of families in the capitals continues to improve steadily, little by little, and families can not only meet basic needs, but also allocate funds for children’s extracurricular activities and development, and take care of their financial health, says J. Bagdanavičiūtė.

The Swedbank Finance Institute’s research was conducted on the assumption that families with two children, both parents, earn an average salary in the capital, live in their own 70 sq. m. m. in the apartment and uses public transport.