Filenews 19 September 2021 - by Theano Thiopoulou
In recent days, the word accuracy has returned to the agenda of the political debate, on the occasion of increases in fuel and electricity prices, affecting the budgets of thousands of households and businesses, as the prices of these two products also affect the prices of many others.
The issue is how much money a family needs to live, how much is the expenses that run each month and how much a family budget can afford. The median salary in Cyprus, according to Eurostat data, is around €1,500, while it began to be widely discussed at what level the minimum wage should be set, which on the basis of a commission recommendation should be at 60% of the average earnings of employees. According to data from the Statistical Service, about half of the employees in Cyprus receive a salary of up to €1,500 and 16.3% of the employees from €1,500 to €2,000.
House expenses
There are thousands of couples in Cyprus who have to repay a mortgage. The amount of the instalment depends on the amount of the loan, the repayment years, as well as the interest rate. For a loan of €200,000, the monthly instalment is approximately €850 per month, with a repayment term of 25 years. Of course, as the loan amount increases, the more the instalment increases, which can reach or exceed €1,000. If a couple with two children chooses to rent a three bedroom apartment, the rents, by conservative calculations, are not below €750 - €800 and if the option is a house, then the rent is over €1,000.
Fixed costs every year
There are many expenses that a family has to cover, both on a monthly basis and annually. Every year, he is required to pay sewerage fees, which are determined on the basis of the estimated value of the house, as it has been costed by the Department of Lands and Surveys, as well as by the province of residence. In addition, the annual costs include the fees for waste, the amount of which is determined according to the municipality or community of residence. In these, it is possible that some insurance coverages will have to be calculated, which many pay annually.
Bi-montlyh accounts
Electricity bills, which are currently being discussed for a temporary reduction, are sent to households every two months. The cost depends on consumption, which is also determined by members of a family, as well as the electrical appliances available. According to conservative calculations, the cost of electricity for the summer, due to the use of air conditioners, is around €250 to €270 per two months, but many will receive bills much higher.
In winter, a family has to calculate as its expenses the oil it needs for the operation of heating or wood, in case a fireplace or electricity is used. The amount in these depends on the use of heating, as well as the price of oil and wood during the period of time. For heating, the amount for oil may reach €200 to €250 per month. The cost of heating with storage heaters is also high, although it affects a small portion of the population, since only 20,000 homes have this type of heating.
The water bill is also every two months and ranges around €35 for a family of three. The amount is determined by the use and the area, i.e. if a family lives in a municipality or community. In the monthly expenses there is the internet, which is around €35, which in many cases is combined, with an additional charge, with pay-TV, especially for football fans, as well as the mobile phones of each member. The amount of a mobile bill depends on the hours of talk and data usage, as well as whether someone has added an amount to the account for the purchase of a device. On average, the amount of mobile telephony is €30-50 per member of the family.
From childhood to studies
In addition to the fixed costs that a family has, there are also the expenses of the children, the amount of which depends on age. As long as a child is at an early age, he needs regular visits to the paediatrician, although now there is the GHS, which requires a monthly contribution, but exempts from larger expenses, scheduled or even extraordinary. Monthly expenses include kindergarten, for which charges vary, depending on the services they offer, i.e. whether they include breakfast, lunch, afternoon, the hours they will keep a child, even the area affects the cost. Prices usually start from €250. The cost of community kindergartens is clearly lower, but they are not offered in all regions. A prerequisite for a child to be admitted to a community kindergarten is that he/she reaches the age of 3 and can be self-serviced. The selection criteria include the financial situation of a family and the availability of seats.
There are also the expenses of language schools or the expenses for hobbies that the child has and raise the family budget. Even when he finishes high school, the expenses continue and are even higher, especially if the studies take place outside Cyprus. In fact, in these cases the lowest possible cost of expenses - apart from tuition fees for students, if required - is€ 800-1000, not counting air tickets for the come and go.
The car breaks bones
A significant cost for everyone is that of the car. The monthly amount for fuel depends on the price of gasoline and diesel, as well as on the kilometres travelled by a car on a daily basis. On average, a couple with two cars needs around €60-€80 per month, for short distances in the city, because apart from the transportation for work is also the transportation for the activities of the children. If a family chooses to take an outing outside, they will definitely need additional gasoline. The situation is much worse for those who use their car for intercity journeys on a daily basis, as they will obviously need €150 to 300 per month, depending on distances. Car costs include the costs of repairs-maintenance-tires and the annual road taxes, which depend on the category to which it belongs. The road tax for an average car is from €80 to €160. If the cars are more in a household, obviously the cost is multiplied. For service once a year, a couple of two cars have to calculate that it will take about €300-400 per year for a simple service.
In the annual costs are also the insurance of the car, which also depends on various factors, such as the type of car, the age of the driver and whether he has caused accidents in the past. In the latter case, the security charge increases for some time. The amount also depends on the insurance company of our choice and whether our car has comprehensive coverage (fulyl insured) or mandatory coverage against a third party. A couple of two cars must calculate at least around €600 to €650 per year for safety.
Expenses for supermarkets and bakery or ready-made food
An important expense for a family is the amount they spend in the supermarket, which depends on the diet, that is, whether they consume more meat, whether organic products are consumed, but also on the age and number of children. A decisive role for expenses in the supermarket is played by the choice of family members to prepare food at home for all meals or for consumption at work. In such cases, more supplies are needed. In the second case, the daily cost in the bakery increases, for fresh bread, fruit and milk. For a family with 3 members, the weekly cost for supermarkets may range from €100 or more and for the bakery €15 -€25 every two to three days. For some families who for some reason do not cook daily at home, a not insignificant amount should be calculated for the purchase of ready-made food.
Daily petty expenses cost money
Depending on the financial capacity of a couple, they choose whether to consume one meal of the day, for example lunch, at work. In personal expenses are coffees, cigarettes, in case someone is a smoker. The family's expenses include in some cases an outing for food or entertainment or for a social obligation. In the above expenses, the cost of clothing, footwear and entertainment, especially of children, which occasionally boost the family budget, has not been calculated. In the expenses there are also the contingencies that arise from time to time, some damage or damage to the house or the cost of equipment renewal or maintenance.
