National Life LLC presents survey results from Ulaanbaatar’s 1,500 households regarding their financial situations, income sources, and expenses.
Survey results show that the average household income is ₮1.5 million MNT, and 46% of the participants answered their current income is insufficient to support their family. Moreover, it shows that current economic situation directly affects 73% of the households; therefore, they want to have additional income through second employment, or raise on their current salaries. 37% of the survey respondents answered that they had financial struggles to buy a property. 34% of the survey respondents had financial burdens to rent or purchase a real estate. Finally, 12% of them answered they needed additional income to pay college tuition.
Based on survey results, there are two common approaches for households to pay their unexpected expenses. These are taking out a loan, or hypothecation. 42%, majority of survey respondents answered they usually take a salary loan, or other available loans to solve their financial struggles. 33% of them said they borrow money from their relatives, and friends. 12% of them answered they take a loan from a pawn shop. According to the survey results, the households save average of ₮80,000 MNT per month which shows the growing awareness of importance of savings in recent years.
Only one household out of five regularly plans its monthly budget; therefore, more households need to be aware of importance of household financial planning. Due to unexpected expenses, 72% of survey participants answered that they experience family disputes. 77% of the survey participants had driver’s compulsory liability insurance, 48% had automobile insurance, 30% had real estate and property insurance, and only 13% had life insurance.
Based on above survey results, households often go through financial struggles because of having no financial plans to cover unexpected expenses such as college tuition, health care expenses, and miscellaneous expenses. Furthermore, these problems are the main concerns that usually weaken vitality of stable family. Therefore, households need to be aware of significance of household financial planning, and should take advantage of financial services such as life and health insurance in order to prevent from unexpected financial expenses.