- The average Brit aims to add £334.93 to their savings every month
- Intention vs reality reveals a very different picture as consumers take £139.17 per month from their savings account
- 9 million Brits admit to dipping into their savings at least once per week
- Millennials are the age group most likely to give up on their savings goals as nearly half (42%) have abandoned their financial plans come spring
With March underway today, Brits seem to be spring cleaning everything but their finances with (removed ‘over a third’)’37% admitting that they abandon their annual savings goals today, March 1st.
The data by VoucherCodes.co.uk, the UK’s most trusted savings site, examines the nation’s savings habits, revealing Millennials (aged between 27 and 42) are the generation most likely to give up on their savings goal, with over two in five (42%) stating they do so on or before the first day of spring. Following closely behind is Gen Z savers (18-26) at 41%.
Despite savings goals not always going to plan, Brits have every intention of stashing away £334.93 on average each month for a rainy day. The reality of how much consumers are saving each month paints a different picture. Typically, Brits remove £139.17 from their savings account each month due to unexpected events or circumstances, meaning on average consumers save £195.76 – 58% less than they intend to at the start of the month.
Breaking this down by gender, men plan to save the most monthly, having every intention of putting away 42% more than their female counterparts at £430.41 and £248.80 respectively. However, they are also spending 51% more from their savings each month, as men dip into £192.34 on average, compared to women who only spend £93.36.
Gen Z are the age group most likely to overestimate how much they can save, removing on average £236.84 each month – the highest of all age groups asked.
Average intended savings amount per month compared to average amount taken from savings per month
|Rank||Age Range/Generation||Average intended savings amount (£)||Average amount taken out of savings to spend (£)||Difference (£)|
|1st||18-26 (Generation Z)||£537.54||£236.84||£300.70|
|3rd||43-58 (Generation X)||£262.69||£109.65||£153.04|
Over one in ten (14%), or the equivalent of 9 million Brits, admit to shifting funds from their savings account to their current account at least once a week. This rises to over a third (35%) of Gen Z savers, the age group most likely to dip into their savings account. The average consumer takes from their savings account roughly once every five days (74 times a year).
Looking at why people need to dip into their savings account during the month, over half of Brits (52%) state rising living costs is making it difficult to stick to their monthly savings goals. Following closely behind is the increased cost of grocery bills (44%) and utility bills (41%).
Top five reasons Brits struggle with saving money
|Rank||Reasoning||% of Brits|
|1st||Living costs have risen||52%|
|2nd||The cost of my grocery shop has risen||44%|
|3rd||My utilities bills have risen||41%|
|4th||I do not have money available to save after paying for my essential outgoings||32%|
|5th||The cost of transport has risen||22%|
Anita Naik, Savings Expert at VoucherCodes.co.uk comments: “Despite the ongoing cost-of-living crisis pushing up consumer outgoings with no signs of stopping, its positive to see that Brits still have optimistic intentions surrounding their savings goals. Even with the best intentions, it can be disheartening when dipping into your savings pot from time to time, but it doesn’t need to feel daunting.
“The start of spring offers the perfect time to give your savings goals a realistic refresh. Firstly, set small but achievable savings goals, similar to new year’s resolutions, focusing on your medium- and long-term goals. Keeping your monthly savings targets attainable will help you stay on track and limit the need to abandon them.
“It’s always recommended to identify what your spending triggers are to stop you from dipping into your savings, for example if you know you can’t resist ordering a takeaway or food delivery delete apps such as Deliveroo off your phone so you can’t be tempted. Lastly, create a strong financial plan, this will reduce your vulnerability to be derailed by unforeseen bills and expenses. Our data reveals one in 20 (5%) admit they don’t create a monthly budget and never know how much their outgoings will be – creating a budget will tell you what you have available to save.”
For more information, visit VoucherCodes.co.uk.