Over a third (35%) of UK adults, equating to over 14 million people, consider their monthly savings to be an essential outgoing, reports Gatehouse Bank.
The research looked at UK adults’ attitudes to money. The survey revealed the increasing importance of saving, even amongst those who considered themselves to be spenders. Eight in 10 respondents (82%) make monthly savings contributions. To meet their savings goals, UK adults are spending less on some of their milestone moments. These include travel, household renovations and weddings.
Go deeper with GlobalData
The main motivation for the increasing focus on saving is concern for the future. Nearly eight in 10 savers (78%) and seven in 10 spenders (70%) identify the pandemic and cost-of-living crisis as barriers to achieving their savings goals.
However, the approach to financial security varies across generations. 45% of savers and 31% of spenders aged 55-60 note that they would need to have enough income to cover essentials, savings and nice-to-haves in order to feel financially secure. This is in stark contrast to just 16% of savers and 14% of spenders aged 18-24 who say the same.
The need to improve financial education
Similarly, almost a fifth (18%) of 18-24-year-olds say they would feel financially secure if their income covered their essential outgoings. But this does not leave room for any unforeseen one-off costs. A further 18% of the youngest respondents say they did not know what financial security meant to them. This demonstrates that there is still work to be done when it comes to financial education for young savers.
Ravi Kumar, Senior Product Manager at Gatehouse Bank, says: “The data indicates a promising increase in those who focus on saving. But the generational gap regarding financial security remains. This is no fault of younger generations. With the vast majority ready to learn from those close to them – over three quarters (78%) of those aged 18 – 24 said they were influenced by their friends and family – there is clearly scope to develop healthy savings habits amongst this age group.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The role of family members in encouraging positive habits is obvious. But the work does not stop with them. Financial organisations need to continue guiding young people to make sensible financial decisions to meet their short-term and long-term goals.”
£32bn hole in UK saving pots: Royal London
Meantime, separate research released by Royal London reveals that since August 2022, almost a quarter (23%) of UK consumers have accessed an average of £2,623 of savings to pay for the rising cost of living.
Since last August, consumers are spending an average £494 a month more to pay for housing, food and energy bills.
One in six (16%) intend to use some or all their short-term savings to cover future rises to living costs.
One in five have less than £100 savings, and of that, 17% have no savings at all reports Royal London.
