Million households don't save enough to deal with unexpected setbacks: Central bank
One in seven households in the Netherlands is unable to raise 2 thousand euros within a month if an unexpected financial setback occurs, according to a study by Dutch central bank DNB. "This means that although the Dutch are generally known as a saving kind of people, about one million Dutch families are in a financially vulnerable position," the regulator said, AD reports.
Over half of the above mentioned group said that they won't be able to get 500 euros together in the event of an unexpected setback. DNB points out that a savings account of 2 thousand euros is not exactly large - the buffer that the national budget information institute Nibud recommends is much higher. Tenants, single parents, and people who are into their overdraft are more often financially vulnerable, according to DNB.
It is "not very reassuring that despite several years with a favorable economic tide and falling unemployment, a substantial group is still financially vulnerable to unforeseen events", DNB said. To prevent problems, DNB advises people to set aside more money for unexpected expenses.