Nation saves for ‘a Rainy Day’ as Economic Uncertainty curbs Spending

The cash-conscious public are putting more savings into their ‘rainy day’ fund than ever before. The coronavirus pandemic has caused Brits to put aside extra money since lockdown began, with the average saving of £459, according to a recent survey of 2,000 adults.

The majority of the savings (67%) came from putting away the money usually spent on eating out and takeaway meals, whilst almost half of those surveyed have been able to put aside the refunds they’ve received due to holiday cancellations.

As many Brits have worked from home since the end of March, significant savings have been made on work-related travel costs, with 43% banking the money usually spent on their daily commute.

This has resulted in three in ten adults admitting they are currently better of financially than they were before the pandemic. 44% of respondents have said they have managed to maintain their level of wealth.

Our spending habits have also changed since the start of lockdown, with the average adult being £146 better off as the nation was forced to cut back on shopping for clothing, and non-essentials such as a daily visit to the coffee shop or entertaining.

Families have been able to make further savings as they are forking out less on childcare costs (11%) and family days out, with almost half of the adults surveyed making savings on day trips.

However, the report also shows that one in four adults are worse off financially since the coronavirus pandemic began.  A quarter of surveyed adults have seen reductions in pay and 14% have taken a mortgage holiday or a loan to ease financial pressure.

The OnePoll survey has highlighted that regardless of their current financial situation, six out of ten adults are now more likely to save for a rainy day.

Maitham Mohsin, head of savings at Skipton Building Society, which commissioned the research said: “These are financially challenging times for many, so it is reassuring to see that some adults are able to set aside savings for a rainy day, to make the best use of their reduced savings.”