Budget Without Surprises: How to Manage Your Money During the Summer in the Euro Era

Summer is traditionally a period of increased expenses for Bulgarian households. The combination of seasonal energy costs, children's camps, travel, and family events often leads to unexpected strain on personal budgets. This year, the situation is further complicated by the transition process to the euro and changes in banking services.

Challenges of the New Currency Reality

Following the official adoption of the euro and the conclusion of dual circulation, consumers must be more careful with payments. One of the key factors is the psychological aspect – prices in euros are often perceived as lower due to rounding, which can lead to faster spending of funds. Additionally, as of July 1, 2026, banks have the right to charge for the service of exchanging levs into euros, which is an important detail for anyone planning to travel with cash levs.

Strategies for Wise Planning

To avoid the stress of running out of funds, experts recommend the following steps:

• Budget Partitioning: The most effective method is creating a separate account or a "virtual envelope" for summer expenses. This prevents mixing vacation funds with current bills for rent, utilities, and food.
• Creating a Buffer: It is recommended to set aside between 15% and 20% of the summer budget for unforeseen expenses such as medical services, technical car problems, or delayed flights.
• Coordination of Shared Expenses: When traveling in a group, it is important to determine in advance who covers which categories of expenses to avoid chaos when accounting for small purchases.

Interest Rates and Inflation

Although interest rates on term deposits in Bulgaria remain at low levels (between 1.5% and 2.5%), they often do not cover current inflation. This means that savings are losing purchasing power. In this context, spending discipline and better expense planning have much greater practical significance for a family's financial health than searching for minimal differences in bank interest rates.

Until August 8, 2026, the period of mandatory dual pricing will continue, allowing for easy comparison. However, for larger purchases, it is recommended to use the fixed rate of 1.95583 levs to avoid errors in approximate rounding.