Cardiff, United Kingdom – Hodge published an extensive report about saving in the cost of living crisis. The research analyses people’s spending habits and goes into great detail about the cost of living in the UK to see how it impacts the way people save and spend their money. This report was integral to Hodge’s internal processes and helped the team understand how to support its customers based on the current turbulent economic climate.
A survey was conducted in 2022 about the cost of living and this new report analyses whether people feel differently about the economy than they did 12 months ago. Over 2,000 people participated in the survey with ages ranging from 21-55+ and incomes of £18,000 to £100,000+ per year. The survey included questions about spending habits, how they felt about the rising cost of living, and how they manage their savings. The findings show people aren’t confident in managing their finances and are struggling to cut back on expenses to save more each month.
Overview of the Findings of this Research
According to Hodge’s extensive research, 75% of people thought they would save less this year than they did last year. More than half believed they had to use their savings to manage daily expenses.
When it comes to spending habits, people have cut down on spending money on luxury goods, dining out, and even limiting grocery shopping. This has impacted retailers and shoppers because even in a month like December, where they tend to see a boost in sales, consumers were more cost-conscious than previous years, and a third were worried about going into debt over Christmas. About 17% were open to taking a loan or overdrawing their bank accounts to get through the expensive Christmas season.
The research also found 54% of participants created an emergency fund to manage unexpected costs compared to 58% a year ago. The findings also show 58% of people were concerned about the continuously rising interest rates and 58% plan to move their savings for a better chance of getting a good return. Overall, 63% of participants reduce the amount of money they spent dining out and 66% are concerned about managing their finances effectively.
The research shows no one is immune to the negative impact of the cost of living crisis, however, gender, age, and income played a part in the way that people saved and managed their finances. For example, people under 50 were more likely to be concerned about the cost of living than those over the age of 50. Similarly, women were 11% more likely to worry about managing their finances than men. During Christmas time, 26% of men were worried about going into debt, while 35% of women worried about the same thing. Interestingly higher earners on salaries ranging from £60,000-£80,000 per year were also concerned about getting into deep debt.
The cost of living is worst in London where people are very worried about housing prices with 22.5% of Londoners now saving more for house deposits. People living in North West England are worried more about rising energy prices and 80% of those people are more likely to reduce their energy usage to manage their finances better.
Many people in the UK need help with living costs and Hodge’s there to support its customers through the cost of living crisis by giving them saving tips and providing valuable information for those who are struggling to manage their finances. To learn more about what Hodge discovered in its cost of living report, visit their website.