1 in 5 Brits Surveyed Have No Savings
Renters Saving For Deposit Falls to 6 Month Low
Barclays Property Insights has revealed that renters are losing confidence about being able to buy a home, with the number of renters actively saving for a deposit falling to 17% from 31% at the start of the year.
takepayments – the leading digital payment solutions provider – conducted a survey of 1,000 people across the UK to investigate financial responsibility and spending habits. The results were then categorised by key demographics like age, gender, and location in the UK.
19% (1 in 5) of the respondents said they have no money saved up at all.
How do Brits save their money?
-
97% of the participants stated that they are concerned about saving money right now but 16% said they don’t currently save any money from their monthly pay.
-
19% of the participants said they have no savings at all (1 in 5)
-
For those who do have savings, the most common amount falls between £1,001-5,000, with 12% of respondents selecting this bracket
-
39% have to dip into their savings every few months
- saving for future investment (such as a property) was found to be the biggest saving priority for 16-17 and 18-24 year olds, while those aged 25 and over are focusing on paying for the essentials (rent, food etc.)
- saving for their children’s future came in as a third priority for 16-17 year olds, indicating early concerns around family responsibilities
- Loan or debt repayment was next after essential payments for 45-54 year olds. With the age of first-time homeownership getting later it’s likely that many in this group are dealing with mortgage repayments or other significant loans.
Brits’ top five spending & saving priorities overall are:
- Paying solely for essential expenses (47% chose this option)
- Saving for future investment (e.g, property)
- Saving up for holidays or trips away
- Paying off loans or debt
- Saving for retirement
When we break down the data by gender, it becomes clear that men manage to put away more each month than women.
-
Almost 1 in 4 (24%) men save between £201-500 each month – this was the most common answer. However, 14% said they don’t save anything from their monthly payslip.
-
For women, the picture is slightly different. The most common answer was “I don’t save anything at all,” with 18% admitting this. The second most common amount was £101-200.
How do Brits spend their money?
- Nearly a quarter (24%) of respondents said that transport is where most of their money goes after covering the essentials (rent, utilities etc.). The second most common expense is eating out (16%).
- Whilst 12% of men prioritise “social drinking” as their main expense after essentials, this is only 6% for women, whereas twice as many women chose “personal care” – compared to men. Interestingly there is little difference between men & women when it comes to “clothes and shoes”.
How financially responsible are Brits?
-
62% said they definitely know their current bank balance, 33% have a decent ballpark figure in mind. 5% admitted they had no clue how much money was sitting in their account (no difference was found between men & women)
-
The data found no difference in the amount of “impulse purchases” made by men & women
-
A third (33%) admitted that they’ve hidden an “irresponsible purchase” from their partner
-
85% of people trust their partner with money, while 12% admitted they don’t.
Here’s what Jodie Wilkinson, Head of Strategic Partnerships, had to say about the results: “Our data clearly shows that many Brits are struggling to save money and are currently living with heavy financial burdens and stress. It’s shocking to see that even 16-17 year olds stated that “saving for their children’s future” is a top concern.
Interestingly, our study found no evidence for the “financial literacy gender gap” – that men are generally more financially competent, while women may be less informed when it comes to managing their finances. men & women splurged on unneeded purchases the same amount and had the same knowledge of their current bank balance.
However, we did discover that men are saving more monthly, on average. Now, it might be tempting to think that men are just better savers, but it’s important to dig a little deeper at other factors that could be having an impact. The gender pay gap, for example, is still very much a thing — in 2023/24, the average hourly pay gap between men and women is 11.8%. We can’t ignore the bigger socioeconomic factors that could be at play here.”
You May Also Enjoy
Letting Agency Owners: Are You the Bottleneck in Your Business?
Latest developments in Renters’ Rights Bill: What landlords need to know
What Will Commonhold Mean for Property Managers?
Think You Know Mortgages? These 5 Myths Could Be Costing You Money
Just 17% of homes selling for more than £500k