A recent survey conducted by comparethemarket.com has found that many Britons who were able to save money during the lockdown are planning to maintain their frugal spending habits. The survey, which involved more than 2,000 participants in the UK, revealed that 56% of respondents managed to save money over the past year due to the pandemic restrictions. However, of those who saved, 33% have no intention of spending the money they’ve set aside, and another third will only spend less than half of their savings.
This cautious approach to spending is driven by concerns about the future. Approximately 10% of respondents are worried about the potential furlough, redundancy, or decrease in income that their family members may face in the coming months. Families with children at home are particularly worried about the long-term negative impact of the pandemic on their finances, with 52% sharing this sentiment compared to a third of households without children.
The financial outlook for families with children is also a cause for concern, as 25% believe it could take up to a year to recover financially, and 11% expect to make financial sacrifices for several years after the lockdown ends. These concerns are confirmed by the fact that nearly a third of families with children have taken advantage of payment holidays since the start of the pandemic, compared to 12% of households without children. Additionally, around two-thirds of parents with children are worried about their ability to pay household bills in the future.
For those who do plan to spend their savings, holidays are the top priority. Many are also interested in spending at pubs, cafes, and restaurants, which could potentially boost the fashion industry as well.
Ursula Gibbs, director at comparethemarket.com, commented on the survey findings, stating that there has been a significant shift in people’s mindset towards personal finances in the wake of the COVID-19 pandemic. The past year has been financially challenging for households and has highlighted the importance of having emergency funds. Gibbs believes that this shift towards saving indicates a change in the financial culture.
Furthermore, as people have reduced their travel and shopping activities, cooked more at home, and found alternative ways to exercise, it seems that many want to continue reaping the financial benefits of the lockdown lifestyle.
Overall, the survey suggests that a significant number of Britons who have saved money during the lockdown are prioritizing financial security and maintaining their newfound frugal habits. This cautious approach to spending may have implications for the retail and hospitality industries, as consumer spending patterns continue to evolve in the ongoing pandemic.
Useful Links:
1. comparethemarket.com
2. Office for National Statistics – Spending Changes During Lockdown
