Sunday January 16, 2022 7:25 a.m.
What personal finance trends are likely to shape 2022?
New research shared with City AM examines sentiment and behaviors for this year.
The pandemic, mixed with wider economic problems and the rising cost of living, appears to have had an effect on Britons’ relationship with money, as results from consumer research platform Attest clearly indicate that the Brits are watching their pounds and pennies this year.
Most Brits are likely to say they spend ‘fairly cautiously’ (31%), while 11% spend ‘very cautiously’, or 42% of those who stick to a strict budget.
But frugality does not apply to everyone; more than a quarter of consumers (28%) spend “freely”.
There are also generational differences in how young and old people spend.
Gen Z is more than three times as likely as Baby Boomers to say they spend “very freely” (11% vs. 3%) and twice as likely to describe themselves as spending “freely” (29% vs. 14 % hundred).
NOTation of savers
While many Britons plan to count their pennies in 2022, 86% say they are putting money aside every month for a rainy day, but not necessarily that much.
Among UK savers, the highest percentage of people (14%) save between £26 and £50 a month, but one in ten (10%) save more than £250 a month.
In contrast, previous Attest research from 2019 found that 22% of Britons said they had no savings.
The new study highlights that only 14% of consumers are not saving on a monthly basis, indicating that people are more likely to save money after Covid.
Baby boomers are the group most likely not to save at all; 21% compared to 17% of Gen X, 10% of Gen Y and 6% of Gen Z. So it seems that even though young people spend more freely than their older counterparts, they also save more.
What do people want to spend their money on?
After the busy and often expensive Christmas season, Britons are saving up for the holidays (32%), with baby boomers particularly eager to travel (34%).
Another sector that stands to benefit is home renovation; just under 20% of Britons are saving to upgrade their homes. This sees a continuation of the DIY trend sparked by 2020 stay-at-home orders.
In terms of big-ticket items, people are as likely to save for a mortgage as they are for a new vehicle (both at 12%).
“Many consumers are extremely cautious with their finances as we enter the new year,” said Jeremy King, CEO and Founder of Attest.
“The ongoing pandemic, coupled with an uncertain economic outlook, seems to have gotten people focused on building a rainy day fund to protect against any unexpected events in 2022,” he noted. .