Brits prioritise saving over spending going into winter
With winter on its way, many people in the UK are using it as a time to take stock of their finances and budget for the cold months and festive fun ahead. New research from Virgin Money reveals how Brits are feeling about their finances in the current climate, as well as how they are approaching spending and saving at this time of year.
In positive news, most people feel in control of their money, and two-thirds agree that managing money makes them feel empowered to be able to do the things they love. More than half of Brits admit that they are prioritising saving over spending at the moment, thinking ahead to festivities when spending is likely to be higher.
Adding to this, more than half of Brits saved the same amount or more in summer as in spring this year, citing an increase in income, cutting back on lifestyle spending, and because they are saving for something specific as the main reasons for this.
Many Brits have managed to build health savings habits with 40% currently having more than £10,000 in savings, and more than half with over £5,000 in their savings accounts. A quarter of Brits have managed to build up an impressive savings pot of £25,000 or more.
One in two people revealed that they have an easy access savings account, making this savings product the most popular with UK consumers. Other popular savings products include a regular savings account, a savings ISA and a pension, which shows people are working to maximise their money, both for now as well as for the future.
However, a third of UK consumers admit that managing money makes them feel stressed and anxious and four in 10 say they feel confused by the financial landscape and the different options available. There seems to be a clear knowledge gap when it comes to Brits understanding their Personal Savings Allowance (PSA – a tax-free allowance that lets people earn interest on their savings without paying tax on that interest), for example – while 63% have heard of this allowance, less than half understand their PSA.
Virgin Money has packed its mobile banking app full of clever tools to help customers budget, top up their saving and track their transactions to help them feel more in control of their money. Virgin Money also offers a wide range of savings products to help customers make their money work for them.
Not sure where to start with saving? Virgin Money has rounded up five ways to start a saving habit and make it last.
Visit Virgin Money to find out more.