Figures from Tesco Bank show that households are sticking to their savings goals where possible, with almost half (47%) contributing monthly to their savings pots, while 20% of savers top up when they can.
Millennials and baby boomers have contributed the most to their pots, putting away £1,127, while Gen Z have put away £1,118. Gen X have saved the least – an average of £1,006.
Chris Henderson, save and pay director at Tesco Bank, said: “Getting into the savings habit isn’t always easy, especially when life feels a bit more expensive, but it’s great that so many people are setting goals, sticking with them and seeing their savings grow.”
One in 10 ‘can’t save’
The figures are good news for many savers, but mask a large number of people who aren’t contributing to savings at all.
Only 17% of people said their savings had dropped in the last month, but 12% of people don’t, or can’t, contribute to their savings at all.
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This mirrors figures from Yorkshire Building Society, out earlier this week, which show that Britain’s financial divide is widening, with savings balances increasing overall but the number of Brits with no cash savings rising too. The percentage of us with nothing to fall back on when times are tough has doubled from 13% to 26% in the last four years, Yorkshire Building Society says.
Pete Lewis, senior savings manager at Yorkshire Building Society, said the figures “highlight the growing financial divide in the UK”.
“While some households have been able to build up savings, far too many are living day by day, unable to withstand financial shocks. With nearly one in five Brits saying they could only survive less than a month without income, it’s clear that rising costs and economic instability are putting immense pressure on everyday families, even those with modest incomes, who are battling higher prices in the shops, mortgage increases and childcare costs,” he added.
Tips to boost pots
For those struggling to save, Henderson has created his five top tips. He said these will help those who aren’t in the habit of putting money away each month.
- Give yourself a goal
To help you stay on track, it’s good to have a goal in mind. Giving yourself something to work towards is a great way to stay motivated. Create saving pots, at home or in your banking app, so you can see the money grow as you work towards your goals.
- Budget, budget, budget
Budgeting is your friend. If you don’t have one in place already, it’s worth getting a budget tracker set up, as it can be a useful tool to track your spending. Your spending may vary from week to week, so having a monthly overview can help you assess where your money is going and whether you need to make any changes to cut costs.
- Ring-fence money for your savings
Setting up a monthly transfer into your savings account will help earmark money for savings, so you don’t spend it elsewhere. A good time to do this is right after you’ve been paid, so you could set up a standing order to go out on, or just after payday.
- Small wins can boost your savings
Additional savings can also come from money you budgeted for but didn’t end up spending. Perhaps your weekly shop cost less than you had budgeted for, or you decided to eat at home rather than go out. If you can take some of that money and divert it into your savings, even if it’s just a few extra pounds, you’ll be able to build up your savings pot and reach your goals quicker.
- Set yourself a savings challenge
There are lots of different savings challenges out there, whether it’s saving a certain amount every day or increasing the amount you save each day or each week. Each is designed to get you in the habit of putting money away and seeing it grow over time, so have a look and see which one could work for you and start saving today.
