22 - 28 March 2001

Money – a major problem facing families

by David Kelleher

The cash flow problem in Malta is not solely restricted to businesses but is a major problem for families as well, and a good number are finding they have to tighten their belts even more as expenses increase but salaries do not.
This major concern comes out in a survey commissioned by The Malta Independent which found that 60.3 per cent of those interviewed said money was a major problem, while 7 per cent said financial burdens such as debts were a major problem.
A total of 300 people were interviewed in a telephone survey. The data was prepared by Prof. Mario Vassallo.
The results show that the Maltese draw a distinction between the problems of security arising out of the need for cash from burdens arising from long term financial commitments such as debts.
The main problems facing families were money (64.3 per cent), work (18.7 per cent), children’s education (11 per cent), financial burdens (7 per cent) and drugs (4.3 per cent).
Of particular interest is the fact that when it comes to unity in the family, only 0.7 per cent of respondents felt that no female employment contributed to family unity. This could possibly indicate that more and more couples consider women working as either normal or a must because more money is required.
With regards to the main causes of discord in families, only nine per cent said financial problems were a major concern. Egoism and lack of time for each other topped the list with 26 per cent and 22.7 per cent respectively.
“A different type of security issue seems to be at the core of the set of concerns facing the Maltese family at present: money, financial burdens and work related issues have been spontaneously identified among the main problems facing the family at present,” Prof. Vassallo said.
Financial constraints are not only restricted to families but companies as well. On a general level, the survey only confirms what the Governor of the Central Bank, Mr Michael Bonello, said. “People are living beyond their means”. However, the root of the problem is much deeper.
With the cost of living going up at a faster rate than wage increases, the burden on workers is increasing as well. Property prices increase by around 10 per cent a year while wages remain basically unchanged. Yet young couples still have to buy a house when they get married and so the added burden of a mortgage and repayments is another worry.
Although lower age earners are facing financial problems, the introduction of taxation on fringe benefits has also affected middle and upper wage bracket earners.
“I have a good salary and manage to lead a comfortable life, however I have had nearly Lm70 deducted from my salary over the past two years. Now, I am having to pay greater attention to what I spend. I am feeling the pinch, let alone those who are earning a minimum wage or a bit more,” a middle manager said.
Speaking to The Malta Business Weekly, the Labour Party’s spokesman for social issues, Marie Louise Coleiro, said the Independent Survey confirmed what the Labour Party had been saying for ages – families were having financial problems.
“The problem is across the board and irrespective of their party beliefs, people I meet are saying the same thing: they have financial problems. There has been a basic reduction in purchases among smaller businesses such as grocers and bakers, simply because people are not spending as they used to,” Mrs Coleiro told The Malta Business Weekly.
Asked to comment on the fact that women going to work was not considered a cause of family dis-unity, she said that more and more women were being forced to go out to work.
“Some families cannot live on one salary and are forced to go out to work. They have no alternative. It is now acceptable that women go out to work. There is a need,” Mrs Coleiro added.