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Households and consumption expenditure by type of household 2006–2012

Every other Finn belongs to a household of either one or two persons

The number of households has increased in forty years by one million, but over the same period, Finland's population has grown by only 950,000 persons. The average size of a household has fallen from 3.35 to 2.06 persons ¹⁾ . The growth in the number of households has in part maintained the increase in consumption, as many basic household equipment and goods are necessary for both those living alone and for households of larger families. In the latter, they are used by several people. The diminishing trend of household size thus sets challenges for attaining emission targets, for example.

Table 1. Households by number of members in 2001, 2006 and 2012 (share in percentages)

Size of household	Share in percentages			Number of households
	2001	2006	2012	2012
1 person	37,7	40,1	40,3	1 044 957
2 persons	33,9	32,8	35,0	909 139
3 persons	12,5	12,0	10,5	271 416
4 persons	10,5	9,7	9,4	244 778
5+ persons	5,4	5,4	4,8	124 691
Total	100,0	100,0	100,0	2 594 999

Source: Income distribution statistics (the year 2012 is preliminary)

Household types reveal the household's life cycle

In this review, differences in consumption are examined by following the household's life cycles. In the statistical release, the same matter is viewed according to the socio-economic group of the household's reference person.

In the figures and tables in the review, use is made of the classification according to households' life cycle:

• Persons aged under 65 living alone

• Persons aged under 65 living as a couple

• Single-parent families where children are aged under 25 and dependants

• Two-parent families where children are aged under 25 and dependants

• Elderly households of persons aged 65 or over

• Other households with at least three adults or persons of both working age and pensioners.

Consumption of single-parent families grew clearly

Differences between groups are compared in Figure 1 and Table 2 by means of the consumption unit ²⁾ . It standardises the effect of household size and age structure. Price differences between years have been removed by converting the sums of 2006 into 2012 money with the price index data. In the six year period, the clearest growth in real consumption was seen in single-parent families, up by 21 per cent. Consumption expenditure in the "other households" group also increased considerably, by 13 per cent. The consumption of childless couples did not grow at all, and the real consumption of families with children of two parents remained almost unchanged. According to the income distribution statistics, income of single-parent families calculated per consumption unit increased somewhat more in six years than in other household types, so risen income may have had an effect on larger real growth of consumption expenditure than in other households.

Figure 1. Consumption expenditure by household type in 2006 and 2012 (at 2012 prices, EUR/consumption unit)

The everyday life and activity of households in different life cycle stages are different and that is also visible in consumption. Consumption expenditure was highest in households of childless couples, around EUR 28,000 per consumption unit. Annual consumption was second highest in families with children of two parents, about EUR 26,000. Consumption expenses in the "other households" group and one-person households were quite close to one another and the average for all households. The consumption of single-parent families was around EUR 1,000 lower per year than in one-person households per consumption unit. In elderly households, consumption expenditure was clearly lower than in other households.

The number of elderly households grew by over one hundred thousand in six years. Their number in 2012 was almost equal to that of persons aged under 65 living alone. Changes were minor in the numbers of households belonging to other household types.

Table 2. Consumption expenditure by household type and by main category in 2006 and 2012 (at 2012 prices, EUR/consumption unit), part 1

Consumption expenditure	All households		One-person aged under 65		Couple without children, aged under 65		Single-parent family with children
	2006	2012	2006	2012	2006	2012	2006	2012
Total consumption expenditure	23 238	24 046	22 431	24 004	28 630	28 228	19 128	23 090
Food and non-alcoholic beverages	2 988	3 014	2 467	2 521	3 448	3 306	2 838	2 974
Alcoholic beverages and tobacco	635	564	800	736	930	833	524	409
Clothing and footwear	760	737	593	620	1 058	946	687	983
Housing	7 018	7 038	6 992	7 500	7 533	6 803	6 336	6 739
Home furnishings, appliances and materials	1 098	1 098	828	919	1 629	1 534	860	1 097
Health	797	808	602	646	781	771	422	614
Transport	3 400	3 950	3 374	3 578	4 726	5 737	2 054	3 220
Communications	500	592	529	626	548	693	581	718
Culture and recreation	2 177	2 458	2 195	2 721	2 742	2 781	1 750	2 267
Hotels, cafés and restaurants	1 039	1 004	1 399	1 422	1 510	1 407	900	1 044
Other goods, services and training	2 930	2 741	2 788	2 670	3 810	3 353	2 287	2 963
Number of households in the sample	4 007	3 551	588	546	906	714	161	117
Number of households in the population	2 455 000	2 594 999	624 808	658 076	489 483	482 133	104 781	88 642
Average household size	2,11	2,05	1,00	1,00	2,00	2,00	2,61	2,50
Consumption units in household, average (oecdmod)	1,49	1,47	1,00	1,00	1,50	1,50	1,63	1,61

Table 2. Consumption expenditure by household type and by main category in 2006 and 2012 (at 2012 prices, EUR/consumption unit), part 2

Consumption expenditure	Two-parent family with children		Elderly household		Other households
	2006	2012	2006	2012	2006	2012
Total consumption expenditure	25 644	26 187	17 950	19 028	22 072	24 980
Food and non-alcoholic beverages	3 341	3 405	2 746	2 863	3 288	3 404
Alcoholic beverages and tobacco	557	459	263	282	623	581
Clothing and footwear	1 179	1 072	355	442	536	603
Housing	6 265	6 409	7 646	7 247	6 521	7 140
Home furnishings, appliances and materials	1 378	1 264	770	785	877	1 204
Health	613	552	1 254	1 221	938	846
Transport	4 298	4 971	1 447	2 102	3 662	4 439
Communications	551	640	350	413	502	627
Culture and recreation	2 581	2 661	1 366	1 736	1 999	2 670
Hotels, cafés and restaurants	1 126	1 074	239	288	668	764
Other goods, services and training	3 743	3 631	1 728	1 633	2 529	2 674
Number of households in the sample	1 090	912	793	833	469	429
Number of households in the population	525 175	510 606	519 072	637 930	191 678	217 609
Average household size	3,92	3,93	1,31	1,38	2,99	2,75
Consumption units in household, average (oecdmod)	2,19	2,20	1,15	1,19	1,95	1,84

   

Change in consumption by main category in 2006 to 2012

Figure 2 presents real changes in consumption expenditure by category. The figure indicates how much expenditure changed in different main categories, when changes in the value of money and structural changes in households are taken into account. Real growth concerns three groups, which are communications, transport, and culture and recreation. The consumption of alcohol and tobacco and various other goods and services went down. In other consumption main categories, real changes in consumption expenditure were minor or non-existent from 2006 to 2012.

Figure 2. Real change in households' consumption expenditure per consumption unit in 2006 to 2012 (%)

Communications expenditure grew in real terms most in households of childless couples and single-parent families. Transport expenditure increased much more than the average in single-parent and elderly households. Culture and recreation expenditure went up clearly in all household types except for families with two adults and families with children of two parents. The amount of money spent on alcohol and tobacco increased only in elderly households.

Changes in consumption structure in 2006 to 2012

Changes in households' consumption expenditure were examined above. The effect of household structure and price changes of commodities were eliminated from the comparison. In real life, households' consumption decisions and purchases are made more or less planned under the conflicting pressures of the household's money situation and its members' present and future wishes, often with the routine dictated by habits and practices. Changes in consumption habits and use of money can be examined by viewing how consumption expenditure is divided as percentages into consumption categories in different household types in 2012 and 2006.

Table 3. Percentage distributions of households' consumption expenditure by consumption main category and household type in 2006 and 2012

Consumption expenditure	All households		One-person aged under 65		Couple without children, aged under 65		Single-parent family with children		Two-parent family with children		Elderly household		Other households
	2006	2012	2006	2012	2006	2012	2006	2012	2006	2012	2006	2012	2006	2012
Food	13	13	11	11	12	12	15	13	13	13	15	15	14	14
Alcoholic beverages and tobacco	2	2	3	3	3	3	2	2	2	2	1	1	2	2
Clothing and footwear	4	3	3	3	4	3	4	4	5	4	2	2	3	3
Housing and energy	27	28	29	31	25	24	31	29	23	24	39	37	27	28
Home furnishings, appliances and materials	5	5	4	4	6	5	5	5	6	5	5	4	4	5
Health	3	3	3	3	3	3	2	3	3	2	7	6	4	3
Transport	16	17	15	15	17	20	11	14	17	19	9	12	18	18
Communications	3	2	3	3	3	2	4	3	3	2	3	2	3	3
Culture and recreation	11	10	11	11	11	10	11	10	12	10	9	9	11	10
Education	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Hotels, cafés and restaurants	4	4	6	6	5	5	4	4	4	4	1	2	3	3
Other goods and services	12	12	11	11	12	12	11	13	13	14	9	9	10	11

On average, the percentage shares of consumption main categories in consumption expenditure have remained unchanged. The shares of housing and transport in consumption expenditure rose by one percentage point from 2006 to 2012. In turn, the shares of clothing, communications and culture and recreation fell by one percentage point. Structural changes in the consumption of different household types are fairly similar to the average for all households. The share of transport expenditure has risen and that of culture and recreation has fallen in most household types. The share of housing expenses in elderly households was in 2012 still clearly higher than in other groups.

The share of food in consumption stayed the same in all household types, except for single-parent families. Previously, the share of food in total consumption has fallen systematically. Over six years, the average rise in food prices was 20 per cent and that in transport fuels 33 per cent. This has, in part, had an effect on their consumption expenditure shares, because the price flexibility of both food and transport expenses is low. The growth in the expense share of housing is explained by the price rise of 20 per cent and partly by growth in living space.

Consumption is defined by owning

The size of consumption expenditure is not solely determined by annual acquisitions of commodities and services, but necessary consumption follows from owning the household's dwelling, transport equipment and free-time residence, which in part dictates on which level expenses are in different sectors of consumption. A car and dwelling and other assets acquired in working age remain mostly on the same level upon retirement. At that time, income usually becomes lower, so the maintenance of the dwelling, car and free-time residence claims a growing share of household disposable income, which reduces other consumption or saving. In Tables 4 and 5, these three structural factors are examined according to the household's life cycle.

Floor area has grown in six years by an average of nine square metres per household member. The number of rooms per person has increased most in elderly and single-parent families and in the "other households" group. The living space of childless couples has not grown at all in six years. Apparently, most households in this group were already living in their desired dwelling in 2006.

All household types had more rooms on average than occupants in 2012, even if the kitchen is not counted as a room. Elderly households have two rooms per occupant. There is less space in two-parent families with children. The growth of living space increases the need for heating energy. The number of light fittings and several entertainment equipment also increases with the number of rooms ³⁾ .

The share of motoring households grew in six years by four percentage points and already one-quarter of all households use at least two cars. The percentage share of households using a car grew particularly much in elderly households where car ownership was in 2012 more common that in one-person households of those aged under 65. Fifty-seven per cent of two-parent families with children had at least two cars. The situation of childless couples remained almost unchanged from 2006 to 2012 with respect to cars as well.

Table 4. Households' housing density by household type in 2006 and 2012

Household type	housing density = rooms (excl. kitchen)/person		m2/person
	2006	2012	2006	2012
All households	1,7	1,7	42,0	51,0
One-person aged under 65	1,9	1,9	56,0	60,0
Couple without children, aged under 65	1,6	1,5	47,0	46,0
Single-parent family with children	1,3	1,3	34,0	38,0
Two-parent family with children	1,1	1,1	31,0	34,0
Elderly household	2,1	2,1	58,0	64,0
Other households	1,5	1,6	39,0	47,0

Table 5. Percentage shares of households owning a car and a free-time residence by household type in 2006 and 2012

Household type	At least one car		At least two cars		Free-time residence
	2006	2012	2006	2012	2006	2012
All households	71	75	23	25	22	26
One-person aged under 65	54	56	4	4	10	14
Couple without children, aged under 65	89	87	32	36	27	28
Single-parent family with children	60	71	5	10	14	11
Two-parent family with children	97	97	52	57	27	27
Elderly household	46	60	3	7	24	35
Other households	89	93	42	44	37	39

The share of households owning a free-time residence alone or together with others grew by four percentage points from 2006 to 2012, when good one-quarter of households owned a free-time residence. Most owners of free-time residences were in the "other households" group, 39 per cent, and least in single-parent families, 11 per cent. In elderly households, the share of free-time residence owners went up by nine percentage points in six years. In households of childless couples and two-parent families with children the share of those owning a free-time residence did not change over the period of 2006 to 2012.

1) The number and average size of households, size of household population and average consumption units in Finland in 1966 to 2011 according to the income distribution statistics. Data for 2012 are preliminary. See http://tilastokeskus.fi/til/tjt/2011/03/tjt_2011_03_2013-04-10_tau_001_fi.html.
2) Consumption units are based on the so-called OECD's modified scale. The first adult in the household is one consumption unit. Other persons in the household aged at least 14 each are 0.5 consumption units and children aged 0 to 13 each are 0.3 consumption units. A household with one adult member is one consumption unit, while a household consisting of spouses and one child aged under 14 together are 1.8 consumption units. Consumption calculated by means of consumption units takes into account the size differences between households and enables their comparison with one another.
3) See Virve Rouhiainen: Kotitalouksien sähkön käyttö 2011 (Households' use of electricity in 2011), http://www.adato.fi/portals/2/attachments/Energiatehokkuus/Kotitalouksien_sahkonkaytto_2011_raportti.pdf

Source: Households’ consumption 2012 . Statistics Finland

Inquiries: Juha Nurmela 09 1734 2548, Tarja Hatakka 09 1734 3553, kulutus.tilastokeskus@stat.fi

Director in charge: Riitta Harala

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Updated 15.1.2014