- Over half (55%) want to maintain savings habits developed over lockdown
- TSB upskills colleagues and offers top tips on how Brits can make the most of their money
With Brits saving £143.5 billion1 in total since lockdown began in March last year, they’re determined to keep up new savings habits adopted over the pandemic with over half (55%) aiming to maintain saving habits once lockdown restrictions come to an end, according to new research from TSB.
While many people have managed to save more and enjoy more disposable cash than ever, there’s mixed views on splashing the cash when people can get out and about again. While 1 in 5 Brits (21%) say they don’t plan to hold back on how much they spend as they want to enjoy themselves, over a third of working Brits (37%) say they will be putting off spending money as much as possible until the economy stabilises. On average Brits expect to spend a total of £576 per month2, which includes almost £90 spent on travel and £87 on socialising.
Marta Kijowska, TSB’s Head of Personal Current Accounts said: “The pandemic has changed our behaviour towards money, and we’ve seen our customers spend less and save more. It’s important to feel in control of your money and we see our customers increasingly wanting help to continue to save and budget so they can make the most of their money.”
Through the pandemic, TSB has provided Money Confidence training, accredited by the Chartered Banker Institute, to 2,800 of its colleagues in customer-service roles to help their customers make the most of their money.
TSB has also launched new products to help customers feel more in control of their money, which include features such as saving pots, automatic spending round-ups and text alerts3.
TSB is today sharing top tips on how customers can find the balance of spending alongside saving as lockdown restrictions end.
TSB’s tips on how to make the most of your money
1: DO THE MATHS
Do a complete heath check of your finances. This means looking at your incoming and outgoing monthly funds - jot down your essentials such as utility bills, food, rent/mortgage and anything else like credit card or debt repayments. Also take a look at your spending before the pandemic but focus on the non-essentials and your average spending per month so you understand what your future spending might look like.
2. GET BUDGETING
Now you know your spending patterns, you can split your funds into non-essentials and savings. Set yourself a monthly and daily budget. Having an end target or goal in mind can really help, and on payday put your savings money aside in a separate account so you won’t miss it. By doing so, you’re not dipping into your savings fund and still working towards your overall target.
3. GET THE RIGHT TOOLS
Having the right tools can really make a huge difference and make it easier for you. Do your research on the current accounts and savings accounts available and choose one which suits your needs. For example, do you need an account you can dip into from time to time or would you like to lock away some savings to stop the temptation of dipping in? Some accounts offer features that take out the hassle of transferring money – like ‘round the pound’ features which round up your debit card transactions to the nearest pound and move your spare pennies into a savings account. Having access to your online banking can make it easier to monitor your spending too. So do shop around. And don’t forget to consider an emergency fund for whatever life throws at you.
4. TALK ABOUT MONEY
If you’re not sure where to start and need a hand with managing your finances, there are options to help you begin new financial habits. For example, your bank can help provide the right solutions for your needs. Alternatively, Citizens Advice is also a great source of information or try the Money Advice Service. Remember to seek help if you need it.
5. KEEP AT IT
Starting a new habit can be daunting but do keep it up. And remember any change no matter how big or small can make a big difference. Keep in mind what your overall target is!
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Notes to editors
- The research was conducted by Opinium Research and is based on a survey of 2,000 nationally representative respondents. The research was carried out in March 2020.
1 Office for Budget Responsibility
2 Total average spending is across the following: socialising, travel, buying clothes and cosmetics, home improvements and big-ticket items.