Personal finance trends to watch this year

Sunday 16 January 2022 7:25 am

What personal finance trends are likely to shape 2022?

New research shared with City AM looks at sentiment and behaviors for this year.

The pandemic, combined with broader economic problems and the rising cost of living, appears to have had an effect on Britons’ relationship with money, because findings from consumer research platform Attest clearly indicate that Britons are being careful. your pounds and cents this year.

The majority of Britons are likely to say they are spending “quite cautiously” (31 per cent), while 11 per cent are spending “very cautiously” – that is, 42 per cent of people who stick to a strict budget.

But frugality doesn’t apply to everyone; more than a quarter of consumers (28 per cent) are spending ‘freely’.

There are also generational differences in how young and old spend.

Generation Z are more than three times as likely as Boomers to say they are spending “very freely” (11 percent vs. 3 percent) and twice as likely to describe themselves as spending “freely” (29 percent). versus 14 percent). penny).

northation of savers

With many Britons planning to count their pennies in 2022, 86% say they are setting aside cash each month for a rainy day, though not necessarily that much.

Of Britain’s savers, the largest percentage of people (14 per cent) save between £26 and £50 per month, but one in ten (10 per cent) save more than £250 per month.

By contrast, earlier Attest research from 2019 found that 22 per cent of Britons reported having no savings.

The new research highlights that only 14 per cent of consumers do not save on a monthly basis, indicating that people are more likely to save money after Covid.

Boomers are the group most likely to save nothing; 21 percent vs. 17 percent of Generation X, 10 percent of Millennials, and 6 percent of Generation Z. So it seems that while younger people spend more freely than their older counterparts, they are also saving more.

What do people want to spend their money on?

After the busy and often expensive Christmas season, Britons are saving for the holidays (32 per cent), with Boomers especially keen to travel (34 per cent).

Another sector that looks set to benefit is home improvement; just under 20 per cent of Britons are saving to upgrade their homes. This sees the continuation of the DIY trend sparked by the 2020 stay-at-home orders.

In terms of big-ticket items, people are as likely to save for a mortgage deposit as they are for a new vehicle (both at 12 percent).

“Many consumers are being extremely cautious with their finances as we begin this new year,” said Jeremy King, CEO and founder of Attest.

“The ongoing pandemic, combined with an uncertain economic outlook, seems to have led people to focus on creating an emergency fund to protect themselves from any unexpected events in 2022,” he noted.

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