THE PROGRAM “FAMILY 500 PLUS” – IMPLICATIONS FOR HOUSEHOLD FINANCE IN POLAND

Abstract

Household finance is heavily dependent on the phase of a family’s development. As the family grows, the household's financial needs change. Young Poles choose not to create families, mostly because of their financial situations. In order to increase the number of births, the "Family 500+" program was introduced in Poland, where parents can receive a benefit of 500,00 PLN (about 120 euros) per month for a second and every further child. It is indicated that the effects of the 500+ program are both positive and negative. Some effects of the program are already visible, although many forecasts have not yet been confirmed in the statistics due to the short duration of the program. The purpose of the article is to identify the impact of the government's family policy program: "Family 500+," introduced in April 2016. This article describes the assumptions and instruments of family policy in Poland, a description of the assumptions of the "Family 500+" program and the implications for household finances in Poland in terms of consumption, income, debt, the labor market or poverty.