Two-thirds still manage to save money despite rising costs
- Two thirds of Britons are still saving money despite rising costs.
- Most are saving for unexpected expenses, vacations, and special occasions.
- Yet one in six still can’t put money into savings
Two-thirds of Britons still manage to save money despite rising costs, research from the Money and Pensions Service shows.
Most said they were saving for unexpected expenses, while others were saving money for special occasions, vacations and day trips.
Saving small, regular, and affordable amounts can help people get into the habit of saving and build financial security.
Yet one in six people are still unable to save anything and have no past savings to fall back on.
Savings: A third of Britons are managing to save for unexpected expenses, holidays and special occasions, new research from the Money and Pensions Service reveals.
Many Britons have been left struggling to pay their mortgage and basic needs in the current rate hike crisis.
Mortgage lenders have been raising their rates, with the average two-year fixed rate now approaching 7 percent, while inflation also remains worryingly high at 7.9 percent.
What do people save for?
A survey of more than 2,000 adults showed that two-thirds (65 percent) said they had been saving money in the past six months.
Of those who were able to save, more than a third (36 percent) said unexpected expenses were the reason they were saving money, and just under a third (30 percent) said they were saving cash for vacations and trips. of a day One in five (19 percent) said the money was for special occasions, while 16 percent said it was for something else.
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Those aged 18 to 24 were more likely to say they had been saving money than any other age group, with four in five saying they had done so in the last six months.
In response to the findings, the Money and Pensions Service said having a savings reserve can help people prepare for unexpected expenses.
Saving small, regular, affordable amounts is often more effective than saving a larger lump sum from time to time, as it helps people get into the habit of saving.
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How to start a savings pot
The Money and Pensions Service has a resource called MoneyHelper. Offers a variety of help and guidance, including free online tools and guides that cover the basics of saving, like getting started and getting into the habit.
The government savings initiative help to save it can also help people with certain benefits get into the habit, giving them a 50p bonus for every £1 saved up to £50 per month, with up to £1,200 available over four years.
Those who have turned 18 since September 2020 and have not yet done so should track their Child Trust Fund, which will provide them with a ready-to-use savings fund.
Here’s how to locate a Child Trust Fund.
Jackie Spencer, senior policy manager at the Money and Pensions Service, said: “Having a savings cushion can help you deal with unexpected costs, so it’s great to see so many people still managing to put money away.”
‘Getting into the habit of saving can seem daunting, but our budget planner and guides can help you get on the right track.
‘However, not everyone can save money and millions live without a financial safety net. This can leave them vulnerable to sudden expenses, such as a failed boiler or car trouble, with a potentially devastating impact if your budget is already tight.
‘If you are having financial difficulties or things are going that way, you can contact us free and confidentially at any time. I urge you to get in touch for help and guidance as soon as you think you need it.’
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