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Hungarian youths entrepreneurial, confident in financial matters - study

The majority of Hungary’s youths plan on starting their own business and claim high pay and flexible workhours are the most significant aspects when choosing a job, according to an study carried out by International Personal Finance, the parent company of Provident Pénzügyi Zrt. (Provident Financial Ltd.).

With the help of market research company Ipsos MORI, IPF conducted online polling between March and April on financial tendencies in seven countries: Czech Republic, Hungary, Lithuania, Mexico, Poland, Romania and Spain. Some 500 Hungarians aged 18-25 years participated.  

According to the study, 70% of Hungarian respondents are considering entrepreneurship and almost one fifth (18%) say their generation is more likely to start a businesses than the previous one. Sime 61% of them state, however, that their current financial situation is stopping them from carrying this out.

When considering career and job choices, 59% of the Hungarian youths look for high pay and 57% for flexible working hours as their main preferences. Only 9% consider the opportunity of being relocated abroad by the company as a crucial aspect.

In the context of loans 48% of the respondents first consider the repayment term’s length, while 45% find the interest rate and 40% the monthly repayments the most important aspects to examine before making a decision.

Extraordinarily confident

Overall, more than half (51%) of the Hungarian respondents believe they manage their finances responsibly, 11% of which are “extraordinarily confident”, according to Provident.

While 42% of those asked say they received some form of financial education, exactly half of those who did no, wish they had been given the opportunity. According to Botond Szirmák, CEO of Provident Pénzügyi Zrt., this shows that the younger generations value finance-related teaching and that is what the company wishes to contribute.

The Provident Családi Kasszasiker (Provident Family Blockbuster) financial informative program was launched in 2008 and has now reached approximately 37,000 households along with 300 social workers and teachers, according to a press release sent to the BBJ.

“In the last 11 years it is the result of our and our expert partner organizations’ intensive work that the Hungarian youth is starting to handle their finances confidently, think consciously about their savings and are more willing to become entrepreneurs,” adds Szirmák.