New research from TSB has found the average Brit loses track of more than £150 a month, despite the vast majority (93%) claiming they know what their biggest expenses are.
The new research shows that more than three fifths (62%) of adults say they spend money they cannot account for without checking their bank account statement and almost a quarter (23%) are left scratching their heads come payday about where their money has gone. Women seem to be marginally better than their male counterparts with an unaccounted £137 come pay day, while men 'lose' nearer to £200 per month.
Unsurprisingly, food is usually the biggest culprit when it comes to 'lost' money with almost two fifths (39%) of respondents claiming they splash out on eating out (20%), takeaways (16%) and lunches (13%).
And while losing a few quid here and there might not seem like a big deal, the research also found that a third (34%) of people over 35 years old do not know how much interest their current account pays. This figure rose to almost half of UK adults aged 18-34 (47%).
What's more, two thirds (68%) of respondents said that they have never shopped around for a different bank account to get a better deal - which could mean consumers are losing out on hundreds of pounds of interest each year.
Other key facts the research uncovered include:
- Almost a third (29%) of respondents with a savings account, say they never review their account to ensure they are getting the best deal.
- Of the respondents, just two fifths (42%) know exactly what their biggest monthly expense is per month.
- After food, clothing (13%) is the main culprit for lost money, followed by coffees (12%) and after work drinks (7%).
TSB's Head of Current Accounts, Andy Piggott, said: "Understanding how your bank account can work for you from a young age is really important as this will help people become more financially savvy in later life. Even if you splash out on your spending, some of the time, by finding a bank account that works for you, with a good interest rate and other offers such as cashback, you will be able to earn some money too.
"There are some great bank account offers in the market at the moment, including TSB's 555 Classic Plus account offer. With 555, customers can earn up to £238 1over the year in interest on their current and savings accounts and cashback on contactless spending.
"Using a budget spreadsheet or spending tracker is a great way to learn where your money is going and see if there is a way to reduce 'lost' money."
People who would like help getting a better hold on their finances or those who wish to review their accounts and ensure they have the best accounts for them, can either visit one of TSB's Partners in a branch or phone 0345 975 8758 for assistance.
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Notes to editors
Opinium Research carried out an online survey of 2,000 UK adults aged 18+ from 9th to 12th of October 2015. Results have been weighted to nationally representative criteria.
TSB's new 555 Classic Plus account offer includes:
- Five per cent interest on the Classic Plus account on balances up to £2,000 and unlike other banks TSB won't whip the five per cent interest away after the first year.
- Five per cent cash back on the first £100 of contactless debit card payments made from a Classic Plus account each month.
- Five per cent interest on the TSB Monthly Saver account.
TSB Classic Plus account gives 5% AER/4.89% gross variable interest on balances up to £2,000 (no interest on balances more than £2,000). Interest is paid monthly. You must pay in at least £500 a month, register for Internet Banking, paperless bank statements and paperless correspondence. You must be 18 or over and a UK resident to apply.
To be eligible for contactless cash back customers must hold a TSB Classic Plus account, have a contactless debit card and be registered for internet banking. Cash back is available on the first £100 on qualifying purchases each calendar month. Cash back is paid monthly. Your Classic Plus account must be open at the time cash back is paid. Cash back will be paid on qualifying purchases made up to and including 31 December 2016, unless we tell you otherwise.
Monthly Saver interest 5% grosses AER for 12 months, paid end of term. Monthly standing order between £25 and £250. Instant access. Cannot replace money withdrawn. Rates are correct for new accounts opened on or after 01/07/2015. Interest rates are fixed for the term of the account, which is 12 months from the date of account opening. Must have a TSB Current Account.
For more information and Terms and Conditions please visit TSB.co.uk.
|Plus. Based on a customer earning 5% AER/4.89% gross variable interest pre tax on £2,000 over 12 months.||£97.80|
|Contactless Cash back. Based on a customer spending £100 a month over 12 months on contactless purchases.||£60.00|
|Monthly Saver. Based on a customer saving £250 a month, earning 5% gross interest after 12 months.||£81.02|
1Table shows maximum amount customers can earn with 555.