The current financial climate has made saving money even harder than usual with many of us increasing our efforts to be increasingly savvier with our spending.
With this in mind, Shepherds Friendly has surveyed 2,000 Brits on their spending and saving habits to reveal how much the average consumer has set aside, how their habits have changed since the rise of the cost of living crisis and how this varies by location and generation.
Brits have just over £20,500 in their savings, with residents in Norwich having the most set aside
Whether its for a rainy day fund or a long term saving goal such as a first home, many of us were taught from a young age the importance of saving. But where do Britain’s best savers reside?
Norwich is revealed to be the city where residents have the most set aside in their savings (£31.533 on average), followed by Brighton (£31,385) and Cardiff (£29,310). Meanwhile, Glaswegians have the least amount of money in their savings (£6,419), followed by residents in Edinburgh (£9,504) and Belfast (£10,593). Shockingly, one in seven Brits (13%) have nothing in their savings at all.
The top 10 cities with the most savings are:
RankCityAverage amount residents have in their savings (Individual savings)1Norwich£31,5332Brighton£31,3853Cardiff£29,3104Birmingham£23,7905Sheffield£22,8996London£22,8467Manchester£22,5198Liverpool£21,1659Nottingham£20,99210Leeds£20,650
Breaking this down by gender, men are revealed to have an average of £23,663 saved up whilst women have an average of £17,505 in their savings – £6,158 less than men.
Despite this, the survey also revealed that Brits think that they need at least £35,366 in their savings in order to feel financially secure during the cost of living crisis, suggesting that most Brits don’t have enough set aside to make them feel safe.
Residents in Leeds have decreased their monthly savings the most during the cost of living crisis
When asking respondents how much they are setting aside per month now compared to before the cost of living crisis, the survey also revealed that Brits are saving £49 less every month on average (£588 a year).
Residents in Leeds have decreased the amount they are setting aside the most during the cost of living crisis (down £179 per month), whilst Mancunians are actually setting aside more (up £148 per month compared to before the cost of living crisis).
Gen-Z Brits are taking out over £4,000 from their savings every year to pay for non-essential items during the cost of living crisis
Despite the cost of living crisis making saving increasingly difficult, the survey revealed that 18-24 year olds are taking £338 out per month (£4,056 a year) for non-essentials such as holidays, meals out and clothes during the cost of living crisis. This is compared to the £423 they were taking out of their savings per month on average (£5,076 a year) for non-essentials before the cost of living crisis.
Looking at the UK as a whole, Brits are dipping more into their savings for essential items during the cost of living crisis (£216 compared to £182 previously), but are taking out less for non-essentials (£187 currently compared to £219 previously). That means Brits are dipping into their savings by £403 every month on average to pay for essentials and non-essentials!
Almost half of Brits have cut down on spending on takeaways and a third are cutting down on their spending on food shopping
Over a quarter (26%) of Brits are currently saving towards a holiday abroad, followed by saving for a rainy day (18%).
Despite this, Brits are also making cutbacks to their spending since the rise of the cost of living crisis with almost half (46%) revealing that they are reducing their spend on takeaways, followed by new clothing (43%) and socialising with friends (33%).
Furthermore, a third of Brits (33%) are cutting down on the amount spent on food shopping and over one in six are making cuts to their spending on utilities (17%).
Derence Lee, Chief Financial Officer at Shepherds Friendly says: “Saving money can be a challenge for many of us, even more so in the context of the current financial climate. Our research shows that whilst Brits are attempting to be more cautious with their spending by cutting down in certain areas, many are still dipping into their savings each month to keep up with increasing costs.
“To help with saving money and providing financial safety for the future, we have a range of ISAs on offer including stocks and shares ISAs to help grow your finances, as well as junior ISAs for parents looking to help their children save for adulthood.” To see the full breakdown of results please see the blog post here: https://www.shepherdsfriendly.co.uk/resources/britains-best-savers/
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