Britain’s savings habits revealed, how do you shape up?

Posted on December 14th, 2016 | Categories - News

SavingNew research has shone a light on our savings habits and the amount of time we spend thinking about money.

The survey from RCI Bank found that:

  • 31% of adults are saving more than they were a year ago, putting away an average of £62 more per month
  • However, 15% are savings less
  • Those adults who are saving more have put away £750 extra over the past 12 months
  • 34% of savers believe that talking and thinking about money made them better savers

Money talks

The survey also showed how much time we spend talking about money and the regional variations that exist.

It’s clear that the North / South divide doesn’t only exist in the housing market. The research found that families in the South of England spend an average of 92 minutes each week discussing money, compared to 77 minutes in the North.

The research showed that younger people are talking about money more than ever before. Younger people, aged 18-34 have almost doubled the amount of time they spend talking about money over the past six months; from 46 to 95 minutes per week.

The rise isn’t mirrored in older generations though, where the amount of time spent discussing money has risen by only nine minutes per week over the past six months.

How do you compare?

The top four cities in the UK for discussing money are as follows:

  • Brighton 97 minutes per week: Up 20 minutes on six months ago
  • Bristol 97 minutes per week: Up 8 minutes
  • Norwich 95 minutes per week: Up 34 minutes
  • London 94 minutes per week: Up 31 minutes

The cities where money is discussed the least are:

  • Newcastle 60 minutes per week: Up 25 minutes
  • Leeds 67 minutes per week: Up 31 minutes
  • Sheffield 69 minutes per week: Up 19 minutes
  • Edinburgh 74 minutes per week: Up 21 minutes

It’s clear that despite our ‘British reserve’ we are all talking about money more than we used to.

The reasons for the change are unclear.

Brexit may play a part with families discussing whether the EU Referendum result will make them better or worse off. The rise in interest rates in August may also have played a part.

Jean-Louis Labauge, CEO of RCI Bank, said: “With political and financial uncertainty continuing to be felt following the Brexit vote and the recent US election, it is clear that families across the UK are keen to voice their money concerns, with the aim of strengthening their financial situation. Whilst it’s encouraging to see southern families taking up the money talk mantle, hopefully families in the north and the UK’s older generations will be upping their money talk in the future.”

He continued: “We welcome the news that so many families are putting more money away than they were 12 months ago, and that adults are securing their financial future with an extra £750 a year in their savings pots. Saving for the future is important at any stage in a family’s progression and we hope these conversations continue to be had, be it first thing in the morning or around the dinner table. With the festive season also fast approaching, it is important families plan ahead to the best of their abilities, as strong saving habits can go a long way to make the holiday period less stressful.”

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