Two-thirds of parents barely able to pay the monthly bills

IRISH families are still f eeling the f i nancial pinch with two-thirds of parents saying that their wages just about cover their monthly bills.

According to the annual Penneys’ Pulse Check, the cost- of-living crisis is still weighing heavily on the majority of households.

The retailer’s national study found that 39% of people believe their financial situation has worsened in the past year, despite improvements in the economy, and a quarter believe their finances will get worse this year.

Almost two-thirds (61%) of parents say their wages just about cover their monthly expenses of rent or mortgage payments, utilities, groceries and crippling childcare costs, with little or nothing left over for family fun.

Parents with chil dren aged under 18 still living at home have the least confidence in t he economy compared to all other demographics, with more than half (56%) expressing a negative outlook.

Women, tenants and those earning a salary of l ess than €30,000 are feeling the strain more t han t he average shopper, and have admitted cutting spending on treats for themselves, while still struggling to manage their finances on a monthly basis.

Meanwhile, 65% of working mothers admitted holding off on career promotion opportunities, due to trying to balance their time with their children.

Gerard O’Neill, chairman of survey company Amárach, said: ‘While the macroeconomic picture has improved and the Irish public has benefited from a range of direct supports to offset increasing household costs, the latest Penneys’ Pulse of the Nation Index has revealed that Ireland appears to be experiencing an interesting trend akin to what the United States has gone through – a “vibecession” – whereby the public mood remains downbeat despite the positive economic indicators.

‘ While our research has found that the majority of people are relatively happy with their quality of life, a person’s financial situation is still having a disproportionate effect on their overall state of mind, with women, families, renters and low-income households being hit the hardest.’

The vast majority of people (86%) still take steps to keep energy bil l s down, with Penneys’ data revealing that sales of fleeces and velvet fleece-lined leggings are soaring as people try to stay warm while they reducing their home-heating costs.

Almost a year on from the first Pulse of the Nation Index, and despite a stronger economic forecast and slowing inflation, consumers remain cautious with their money, with the majority (84%) of adults still actively shopping around to find the best value.

Highlights from the latest Pulse Index online study of 1,200 adults found that 71% of respondents were eating out or getting takeaways l ess often; almost half of households ( 47%) cancelled an entertainment subscription; and almost two-thirds (62%) have switched to a more affordable grocery shop.

In addition, 69% socialised less in a bid to better manage

‘Mood remains downbeat’

their household finances.

The Penneys index found that parents can typically only spend about half of what an adult without a dependent child can spend.

Adults without dependent children spend almost twice as much eating out, averaging €50.97 each at a restaurant compared to an average of €26.44 per person for families.

They wi l l also s pend significantly more at the cinema and more than twice as much at a sports event than adults with children, with many parents blaming the cost of childcare for their constrained spending.