Economic ups and downs trouble every saver from time to time and raise a clear question. What is the best way to save during a crisis? Securing your income and a balanced household budget is a priority at all times. A recession, a natural disaster or a pandemic can change the rules of the game unexpectedly. Actively building a flexible emergency fund is the best tool for getting through a crisis. Take time to learn about financial literacy and try to involve your children in the topic too. What options are available?
Short answer. In uncertain times, what matters most is when you will need the money. Keep an emergency fund of three to six months’ income in a savings account with no notice period, so you can withdraw it quickly. Money you will need in one to ten years belongs in less volatile instruments, and only money you will not need for more than ten years is worth leaving in shares, even during a market downturn.
When should you start saving?
It is best to start saving as early as possible, ideally in childhood. Explain to your children that money is a means of exchange for goods and services, and that people usually earn it as a reward for doing their work well. Try to teach them to value money and to treat it with care.
You can gradually encourage older children to save actively. Right after they are born, you can make their life easier by opening their first building savings (stavební spoření) account, where money for their studies or their own home will build up until they come of age. Another option is regular investing.
You can encourage children to help with housework by giving them regular pocket money. Children aged 8 to 10 and over can have a current account, including a payment card. Besides pocket money, they can also put money gifts from parents and relatives into the account.
What is the best return on savings for children?
Building savings (stavební spoření) is a fairly popular and widely used product. For child savers, it offers a choice of how much to save, state contributions, free account opening during promotions, and the option of getting a good-value loan for renovation or the initial capital needed to obtain a mortgage.
Six years after the contract is signed, the savings, including state support, can be withdrawn and invested further. However, until the child comes of age, parents must manage the money with due care (Section 896 of the Civil Code (občanský zákoník)). The article on saving for children summarises the details.
The advantage is that your deposits are guaranteed to be returned if you meet the conditions, usually regular saving and keeping to the minimum saving period. The following table shows how much can be saved for a newborn with the Buřinka building savings bank.
| Monthly deposit | Final amount saved |
|---|---|
| 500 CZK (about 23 USD) | 122,634 CZK (about 5,600 USD) |
| 750 CZK (about 34 USD) | 187,257 CZK (about 8,600 USD) |
| 1,000 CZK (about 46 USD) | 251,878 CZK (about 12,000 USD) |
| 1,250 CZK (about 57 USD) | 316,505 CZK (about 15,000 USD) |
| 1,500 CZK (about 69 USD) | 380,924 CZK (about 17,000 USD) |
| 1,700 CZK (about 78 USD) | 429,328 CZK (about 20,000 USD) |
The table shows the offer from the time the article was written, when state support was 10% of deposits. Since 2024, it has been 5% of deposits up to 20,000 CZK (about 920 USD), so at most 1,000 CZK (about 46 USD) a year (Section 10 of Act No. 96/1993 Coll.). Final amounts today will therefore be lower, and you should check the current conditions with the building savings bank.
The disadvantage is the lower return on both the savings and the state support received. As a result, savers look to invest in more attractive products.
Saving in gold and providing for retirement
An interesting option is investing in gold or silver (investment bars, commemorative coins), or in proven investment instruments (usually a combination of shares and real estate funds). You can save in gold even in smaller amounts, but regularity is what matters.
At every stage of your life, remember the need to build an emergency fund and to protect yourself against illness, injury or old age, when your income will fall significantly. Do not rely only on help from the state. Supplementary pension savings can be opened even for a newborn, which brings them into the habit of regularly building a reserve.
Another option that helps you provide for old age, available since 1 January 2024, is the long-term investment product (DIP). It allows you to get tax relief while investing with more risk. It is one alternative to traditional supplementary pension savings.
Tip: Read also: How to manage your money well and save?
Supplementary pension savings
Supplementary pension insurance (penzijní připojištění) has changed radically over the past decade. Children can now also take part. It works on a similar principle to building savings. For contributions of 500 CZK (about 23 USD) a month or more, each participant receives a state contribution of 20%, up to a maximum of 340 CZK (about 16 USD) for contributions of 1,700 CZK (about 78 USD) or more.
If the savings have lasted at least 120 months, it is possible to withdraw 1/3 within 2 years of the 18th birthday and continue saving until retirement age. Supplementary pension savings can also be transferred to another participant fund. Parents can combine supplementary pension savings with building savings or another investment product that brings a higher return, and so prepare their children for their studies.
Advantages of supplementary pension savings:
- You can claim a tax deduction on the part of contributions above 1,700 CZK (about 78 USD) a month.
- No fee for opening or managing the account, but the pension company charges a fee from the fund’s assets (Section 60 of Act No. 427/2011 Coll.).
- You choose your own investment strategy (how money is allocated to individual participant funds), which affects the return.
- Participants can draw money as a pre-retirement pension (předdůchod).
- Monthly state contribution of up to 340 CZK (about 16 USD).
Why keep a reserve in an account in uncertain times
A liquid reserve is money you can access within a few days without any loss. It covers a loss of income after losing your job as well as unexpected expenses, such as repairing a washing machine or an extra payment for energy. The Ministry of Finance recommends keeping available funds of at least three, and ideally six, months’ income, stored safely and easily accessible, for example in a savings account with no notice period.
According to the financial literacy survey (carried out in January 2025), published by the ministry on 26 March 2026, 70% of households set money aside in case they lose their income. 63% of people could cope with losing a month’s income without borrowing. Most often they keep the reserve in a savings account, as stated by 35% of those who save.
In the model example, a household has a net income of 45,000 CZK (about 2,100 USD) a month, so its reserve should reach 135,000 to 270,000 CZK (about 6,200 to 12,000 USD). Deposits in accounts are insured. The article on safe ways to grow your money explains exactly what the insurance covers. The size of the reserve is discussed in more detail in the articles Personal emergency fund: how much to save and What is the ideal household emergency fund.
How to set up the best savings plan?
Ideally, build an investment portfolio that includes short-term, medium-term and long-term investments, so you are always ready for a setback. For short-term saving, you can use a savings account or a term deposit. These let your money earn a return while remaining available almost at any time.
For medium-term saving, you can use building savings and investment products (bonds, term deposits, saving in gold) with a horizon of 5 to 10 years. Long-term saving includes supplementary pension savings, investment life insurance, investing in shares and combinations of investment products.
Splitting savings by time horizon in the model example
The Ministry of Finance distinguishes between a short-term reserve, a medium-term reserve for larger expenses such as a car or a holiday, and a long-term reserve for children’s education or retirement. The table shows how savings might be split for the household in the example above, which has saved 600,000 CZK (about 28,000 USD).
| Horizon | Purpose | Model amount | Where the money can be | Main risk |
|---|---|---|---|---|
| up to 1 year | reserve for loss of income and unexpected expenses | 180,000 CZK (about 8,300 USD) | savings account, short term deposit | interest does not keep up with inflation |
| 1 to 5 years | car, renovation | 120,000 CZK (about 5,500 USD) | term deposit, government bonds, bond funds | lower price if a fund is sold early |
| 5 to 10 years | own home, children’s studies | 100,000 CZK (about 4,600 USD) | building savings, mixed funds | fluctuations in value |
| over 10 years | retirement | 200,000 CZK (about 9,200 USD) | pension savings, DIP, equity funds | market downturns, money locked in until age 60 |
This split illustrates the principle and is not personalised advice. The closer an expense is, the smaller the drop in value you can afford, so as your goal approaches, gradually move money from the long-term part into safer instruments. The difference between a savings account and a term deposit is explained in the article Term deposit versus savings account.
Tip: Also take a look at this post: 19 Tips: Financial Literacy, or How to Get Rich?
What to do with your investments when markets fall during a crisis
With broadly diversified funds, a market fall is only a loss on paper until you sell the investment. If you invest money you will not need for ten years or more, you do not have to react to a fall by selling. Selling during a slump would actually lock in the loss. The problem is for people who put their emergency fund, or money for an upcoming expense, into shares. What a long period of falling prices looks like is explained in the article on the bear market.
Regular investing can continue during a slump, and the same amount then buys you more units. The approach is summarised in the article on regularly investing small amounts. If you do sell shares or ETFs during a crisis that you have held for less than three years, and your income from sales exceeds 100,000 CZK (about 4,600 USD) in a year, expect to pay tax. The rules are described in the article on the time test (časový test).
However, a crisis also eats into the value of money in your account. According to the Czech Statistical Office (ČSÚ), the average annual inflation rate reached 15.1% in 2022 and 10.7% in 2023, and returned to 2.4% and 2.5% in 2024 and 2025. According to the ČSÚ consumer price index, 100,000 CZK (about 4,600 USD) from December 2021 had purchasing power of roughly 81,000 CZK (about 3,700 USD) in December 2023. More examples are given in the article on the loss of the value of money.
The best type of savings or investment during a recession?
The world of investing is diverse, and it is hard for ordinary people to find their way around it. A period of economic crisis is full of uncertainty, so it makes sense to rely on stores of value. Gold and silver investment coins can complement your savings, but their price also fluctuates. Some may also gain collector’s value.
When this article was written, you could add to your collection, for example, with a gold coin bearing the face of Karel Gott to mark his 75th birthday. The coin was issued by Česká mincovna in a mintage of 3,000 pieces at a price of 39,990 CZK (about 1,800 USD).
Similar options include investing in rare stamps, works of art and antiques or classic cars. It depends on the investor’s character and interests.
Another option is direct or indirect investment in property. If your financial situation allows a larger investment, consider buying a smaller flat that you can let out on a longer-term basis.
The rent can cover part of the costs, including gradual renovation, and you can then sell the flat at a profit if property prices rise in the meantime. However, a profit is not guaranteed, and a flat cannot be sold quickly if you need the money straight away. A recession is often followed by an economic recovery, which can also bring rising property prices. Both buying a property and selling it therefore need to be timed well.
You can also share ownership of a property with other investors. Reputable professionals take care of the letting and the rental income. Yes, we are talking about the Sporo real estate account. In 2021, when this article was written, it offered a return of 3.5%. You need to check the current terms and return with the provider.
See an economic crisis as part of the economic cycle, much like the changing seasons. But even getting through winter calls for good preparation. A suitable combination of investment products, regularly building up emergency funds and well-considered investment in property will help you get through this period with fewer consequences.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
