K&H: Young people’s income has increased to a record level

Young people have reached another record level in terms of their personal income, which includes benefits and subsidies from parents and other sources, and for working young people, also their wages. According to the K&H Youth Index, which also examines the financial situation of 19-29 year-olds, the average amount increased to a net 234 thousand forints by the end of last year, compared to 225 thousand forints in the third quarter of last year and 200 thousand forints a year earlier.

“The record is actually not a surprise, as in recent years the increase in wages has also pushed up the income of young people. It is also clear from the longer-term data of the survey launched at the end of 2012 that the income of young people has doubled compared to the beginning of 2019,” said Zoltán Rammacher, Marketing Manager of the K&H Retail Customer segment, evaluating the recent results.

Extremes in forints

There are of course differences within the average value. Men reported an average net income of 261 thousand, and women 205 thousand. The average income of 19-25 year olds, which was 210 thousand forints, has increased to 272 thousand forints for 26-29 year olds. The average of 284 thousand forints for residents of the capital is higher than the average of 265 thousand forints for residents of county seats and 178 thousand forints for residents of smaller towns. Compared to the 322 thousand forints for active earners, the average income of students is only 177 thousand forints, while the average for inactive people does not even reach 100 thousand forints.

In addition, 7 percent of the young people surveyed reported that they had no income at all, and 11 percent could manage on less than 50 thousand forints per month. Furthermore, the proportion of those who spoke of an amount between 250 thousand and 300 thousand forints is 13 percent, while 9 percent have a monthly income of more than 500 thousand forints.