Savers put away 29% less as lockdown eases
Falling savings habits: Britons continued to put money aside as lockdown eased – but average amount fell by 29%
- People Still Saving After Lockdown Restrictions Relaxed, New Data Says
- However, the average amount saved is 29% lower than in March.
- We see that more people are spending on eating out and shopping
The average amount of people spared since the lockdown restrictions were lifted on May 17 has fallen almost 29% from the level in the last two weeks of March, new research has revealed.
Sign that Britain’s saving habit may fade as opportunities to get out and spend present themselves, people are still putting money aside but less, according to figures from the financial app Yolt.
Nonetheless, he said its users’ savings banks were growing – an average of 17% over the period.
People are saving less since lockdown restrictions were relaxed with many spending on dining out
Unsurprisingly, with more people able to make the most of a little bit of newly released freedom, its data showed spending increased across several industries as well, with the biggest variation in shopping and dining.
This includes a 9 percent increase in the average amount spent by users on eating out, increasing as indoor meals resumed.
Meanwhile, Yolt customers have spent 7% less on groceries since the restrictions were lifted in May, compared to during the lockdown in March.
Yolt is an app that allows users to view their accounts, credit cards, pensions and investments in one place, and has 1.6 million registered users in all markets – it drew its data from a sample of 30,000 users in the UK.
Where are people spending?
Yolt found that there had been a 6% increase in the amount splashed on purchases in the last two weeks of May compared to the same period in March, after non-essential retail businesses reopened on April 12.
The average number of transactions completed also increased by 1%.
While that might not seem incredibly high, the data includes both online and in-store purchases, with many spending significantly more online during the lockdown anyway.
Not only was there a 9 percent increase in the average amount spent by people eating out, but overall transactions increased by 14 percent.
Separate research from Lloyds Banking Group has shown that spending in pubs and restaurants, including take-out, increased 36% between Monday and Wednesday in the week of May 17 compared to the same period in the previous week.
Spending: Unsurprisingly, there has been an increase in purchases since restrictions were lifted in April
Lloyds added that supermarket spending fell 5% in the week of May 17 from the previous week.
Its customers have also spent 10% less on groceries since the restrictions were re-lifted on May 17, compared to the same period during the lockdown in March.
This could indicate that people are starting to do less shopping for the house given the easing of restrictions and the ability to eat out.
This is supported by the 4% drop in spending by Yolt users on take-out food since the reception areas opened.
Interestingly, the amount people spend on transport fell 18% from the end of March, but the number of transactions increased by 17%.
Yolt said it appears to show people are starting to travel more, but with average spending falling, it could indicate shorter, more local trips – rather than larger, less frequent but more expensive trips on greater distances.
Pauline van Brakel, Product Manager at Yolt, said: “The last year of lockdown restrictions has undoubtedly had an impact on our food shopping, dining and savings habits, and as we will come out of lockdown, it is likely that we will see a change again.
“The financial impact of the pandemic has been considerable and has affected some people more negatively than others.
“As foreclosure restrictions have gradually eased and continue to ease, it has never been more important for people to be smart with their money and strive to find new ways to balance spending. and savings. ”
Consumers are encouraged to budget to help them spend less and save more in the future
Tips for spending less and saving more
Tips for continuing to spend less and save more now that restrictions are starting to ease.
1) Review expenses: Simple steps like reviewing your regular expenses like energy bills, grocery shopping, and subscription services can be a good way to highlight areas where you could cut back on your spending.
Taking stock of your spending in this way can even reveal withdrawals you forgot – which can also help free up funds.
2) Use the price comparison: You might even be able to save on your “fixed” costs such as power, broadband, and mobile phone deals.
Look for alternative suppliers and deals using price comparison sites and you could save hundreds of dollars. Money’s carefully chosen partners can help, see if you can save on:
3) Spend smart: Shop around for the best deals and keep an eye out for money saving deals wherever possible.
4) Keep your savings and pocket money separate from each other: This will ensure that you don’t unintentionally dip into your savings and also allow you to see the progress you are making towards your savings goals.
> Consult the best savings rates
5) Set a limited budget and stick to it: Track your spending to make sure you don’t exceed this limit. If you have more than one account, it can be easy to lose track of where your money is, which can make you feel overwhelmed.
Realistic budgeting and expense tracking can be extremely helpful in helping you plan and set budgets that are right for you, helping you avoid reliance on credit where possible, and allowing you to feel good about yourself. more at the top of your money.