Bank survey: 92% of Latvians cut back on at least one spending category

Residents of Latvia are weighing their spending more carefully: 92% try to save on at least one expense category in their daily lives, according to a survey by the bank Citadele. Compared with last year's survey, saving has become more widespread and increasingly affects spending that shapes quality of life. The bank's chief economist says this could slow the recovery of domestic consumption.

What people cut first

The most common area for savings is entertainment and leisure activities, named by 33% of respondents, two percentage points more than a year ago. The share of the other most popular answers in 2026 has also grown by two to four percentage points. Last year 27% of residents saved on beauty care; this year it is 30%. The share saving on clothing, footwear and accessories rose from 27% to 29%. Travel, recreation and cultural events are also popular choices for cutbacks.

Differences by age and place of residence

People aged 40 to 49 save the most. At this stage of life, people typically have to cover housing costs, support children, help parents and build savings at the same time. Kārlis Purgailis, Citadele's chief economist, says this points to growing pressure on the budgets of the most economically active households, and prolonged forced saving could weigh on both domestic consumption and the pace of economic growth.

Older people more often cut back everywhere they can, rather than singling out particular categories. Among those aged 18 to 29, 27% save on food, compared with 12% of those aged 60 to 74. Purgailis explains that seniors' spending habits may already be adapted to a limited budget, leaving less room to cut food costs further.

In Riga, 22% of residents save on food, while in other regions the figure ranges from 10% to 16%. The economist links this to the high cost of living in the capital: for some households, after paying for housing and monthly bills, less money is left for everyday spending than income statistics suggest.

Purgailis stresses that a deliberate wish to build savings should be distinguished from being forced to give up essential spending, including health care, which he says points to financial vulnerability.