New research from Aldermore bank, asking 2,000 UK adults about their savings habits, reveals that the Covid-19 pandemic has enabled Brits working from home to save an average of £110 per week. This change in routine has significantly changed people’s weekly spending and indicates that Brits will be more savings savvy in the future.
Every little helps
Brits are finding that even small savings gained by working from home are adding up quickly, and over time are providing big saving rewards. The biggest savings include on average £29 per week from not commuting to and from work, £20 on not spending as much on breakfasts and lunches, £22 on not socialising with work colleagues in person, £18 by avoiding takeaway coffees, and £22 on not going out on weekdays after work. All these savings accumulate and total on average £2,860 over a period of six months working from home.
The saving habits adopted due to the Covid-19 pandemic are likely to continue beyond this period and turn into better long-term spending routines. Almost half (47%) of workers plan on cutting down on past expenses, such as work lunches, takeaway coffees or colleague drinks, when things return more to normal. In addition, almost two thirds (68%) of Brits say that in the future they will continue to implement cost cutting techniques learned during lockdown to save money. The most mentioned savings methods were; shopping less frequently for non-essentials (33%), spending less on socialising (29%) and reducing the cost of the weekly shop (22%).
Savings by workers contributed significantly to the growth in UK house deposits, which rose by a record £88bn between March and September 2020, up 183% from £31bn during the same period last year.
Ewan Edwards, director of savings at Aldermore, said: “This has been undoubtedly a difficult year with many challenges being faced, but one positive to take from 2020 is it has given some people the opportunity to reflect on how to improve their personal finances. Our data shows how little savings here and there can in the long term add up to big rewards, and many Brits are now seeing the benefits of better saving routines.
“It’s important to ensure this spare cash is working for you as best as possible, and not just lying dormant in a current account. As we look towards returning to more normality in the future, this is a good opportunity to find a savings account which suits your personal 2021 savings goals and make all those little and big savings work harder for you.”
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