It’s UK Savings Week, that time of the year when everyone is encouraged to take a moment to stop and think about their savings habits.
HOW, WHEN and WHY we save is different for all of us. Some of us see our savings as a safety net, a ‘just in case something happens account’ which gives us peace of mind. For others, it’s a trampoline – an account that will help us to fulfil our dreams and live the life we want.
UK Savings Week encourages people to start with WHY they are saving, or not.
For some, the reason why they aren’t saving is the money coming in doesn’t cover what they need to spend. But for others, it’s because temptations keep coming, or they haven’t found a way to save regularly that works for them.
For those who are able to save, if you can visualise what you will spend your savings on, the motivation to stick to your savings plan will be much stronger. Then by fixing a date of WHEN you want to achieve your savings goal you will be able to work out how much you need to put away each week or month. So if you’re saving for a peace of mind account and want to have £300 tucked away for emergencies within 12 months, saving £25 a month should get you there. Similarly, if your dream is a special family holiday next summer, saving £200 a month might be what you need to do to achieve it.
The HOW we save really depends on how we are best motivated as individuals.
UK Savings Week has been finding out some of the nation’s savings habits – and we got a few surprising results!
Saver or Spender
Twice as many people say they are more of a saver than a spender. Just over half consider themselves to be a saver, with around one in four saying they are spenders. This ties in with research that shows around 60% of people save on a regular basis.
Reasons for Saving
Our top three reasons for saving are:
- Saving for a rainy day
- Saving for a holiday
- Saving for our later life
However, gender appears to affect our savings goals. Women are more likely than men to be putting a money aside for an emergency fund, whilst men are more likely than women to be saving for a luxury item.
The majority of those who don’t currently have any savings set aside said they are spenders. Although encouragingly nearly half of non-savers are confident they could save a little each month. They told us that if they did start to save their main goals would be:
- Save to pay off debts
- Save for unexpected costs
Secret Savings
Around a half of all parents with children under 18 years confessed to having a secret savings account. The majority do this to maintain their own independence, while others use their secret savings on surprises for their family.
Some admitted to having a secret savings account because they don’t want their family to know what they are saving for or spending on.
Only one in five people who don’t have children said they have a secret savings account.
Feelings Around Savings
As having a regular savings habit makes us more resilient when unexpected things happen, and helps us to achieve our dreams, it’s no surprise that having some savings improves our overall wellbeing. Regular savers tell us that they feel more optimistic about the future and they are able to relax and sleep better.
And you don’t need very much money set aside to feel more positive. Almost half of those who have savings of up to £100 said they felt optimistic, proud, or a sense of achievement.
So whether you want to start a new habit of saving regularly or whether you need to give your savings some oomph by checking out the interest rate you are getting compared to what else is available, UK Savings Week is a great reminder to take a moment to look at how you could have better savings habits.
The message is clear: there are many ways to save, and whether your savings are big or small, they can open up a world of positivity and opportunity.
We will be posting lots of hints and tips on our social media channels* this week, and you’ll find oodles more on the UK Savings Week website.
Savings. They’re what you make of them.
*Find us on Facebook, Instagram and TikTok.
