Martin Lewis advises against children's savings in Premium Bonds
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Research by money management Lumio found that the average household savings in 2020 was £6,757 whereas consumers are on track to save only £5,400 this year. In addition to these decreasing numbers, 2020 saw nine percent of UK residents with no savings at all and one third of adults only having £600 in their savings account.
As important as it is, many feel they don’t save enough every month and would like to save more but are unsure of how to.
On average, Britons save 8 percent of their monthly, but this amount differs greatly depending on age, income and what individuals are saving for.
During the course of 2020, people aged 18-24 had the least amount of savings, averaging at £2,000 whereas those aged over 55 had the most savings at £20,000 average.
Countries within the UK
When comparing the different regions and countries within the UK, the average Londoner saved more than three times the UK average with £28,000 in savings.
Scotland had the largest percentage of citizens with less than £1,000 in savings and a national average of £7,000.
Wales had the highest national savings average of around £9,000 and Northern Ireland had the lowest average with £6,000.
Forms of savings
The most popular form of savings is undeniably savings accounts, with cash ISAs being the most popular type of account.
Around 15 percent of UK citizens have a cash ISA, whilst three percent have their savings in a stocks and shares ISA.
Finance apps saw a 90 percent increase in market share in 2020, largely because of the massive and sudden rise in downloads.
How to increase savings
Savings did see a slight increase during 2020 in comparison to 2019 as less disposable cash was spent on luxuries like daily coffee shop runs or holidays.
However, now as life returns to a somewhat normal state many are struggling to reign in their expenses while still enjoy the newfound freedom.
Pulling these expenses down to an affordable level starts with proper budgeting.
Start by listing necessary and immovable expenses like insurance and rent, then instead of continuing to list flexible expenses like groceries, put away a set amount of savings first.
This ensures that an amount is saved every month and lowers the number of potential impulse purchases or wasted expenses.
During lockdown, most everything was ordered online using credit or debit cards, but as cash becomes useful again bring back the loose change jar and piggy banks to keep any spare coins aside.
Additionally, there are plenty of good deals and discounts around to encourage shoppers back into stores.
Make the most of this by researching which stores are offering what promotions and plan a shopping schedule to make the most of these savings.
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