The coronavirus has made the UK a nation of savers overnight, according to a recent report by The Independent. This pandemic has woken people up to what really matters to them; keeping themselves and their loved-ones financially secure.
Gone is the ‘live for today’ mantra for many people. Instead they are worried about what will happen tomorrow.
With the future more at the forefront of people’s minds, it’s changing their attitude towards money on a long term basis. Financial wellbeing and education are being taken more seriously, as people can’t afford to spend irresponsibly and rely on credit anymore - recent estimates suggest Britons owe £72.5 billion on credit cards.
Since we have been confined to our homes, spending habits are changing as people are no longer eating and drinking outside, and can use this extra cash to reduce debts and boost savings. A recent estimate said almost 60 percent of people have already saved some money during the lockdown, putting aside £162 a week, in some media reports. While others suggest UK households have saved almost £900 by now. You can read more tips on how to manage your newfound savings in our previous post.
The current economic situation due to coronavirus is putting huge stress on a great number of households across the UK, but for some these lockdown savings offer a silver lining.
- Jamie Flook, a chartered financial adviser at The Citimark Partnership.
The extra funds have brought some one step closer to achieving a long-term financial goal - perhaps a little extra for the wedding fund, a top up for the house deposit or maybe the opportunity to start investing. Some might just be waiting to go all out for an epic summer 2021. However it’s used, the boost to savings brings some comfort within the crisis. The pandemic has also afforded people the time to think about the importance of financial wellbeing - and highlight ways we can improve our behaviours towards money.
Money management courses and guides have never been so vital for people to find out the best investments and savings tools available. More and more companies are turning to solutions such as Mintago to help their employees get to grip with their money matters while improving their mental wellbeing. With unbiased finance education platforms like Mintago, this is as good a time as any for people to take advantage of this lockdown saving window and improve money management skills and plan for the future.