Scotland’s councils faced a collective gap of up to £585 million between the money needed to deliver services and the money available when setting their budgets this year. This is estimated to increase to £780 million by 2026/27. Ever tougher decisions must be made to ensure councils are financially sustainable.
Councils are addressing this most commonly by making ongoing savings, using reserves and raising money through charging citizens for some services.
An Accounts Commission report on the budgets set by councils for 2024/25 says that a near six per cent increase in Scottish Government revenue funding to councils – totalling £13.25 billion – masks significant underlying financial challenges and strain. Almost all the increases in funding have been ring-fenced for policies and to cover the costs of pay increases in 2023/24.
Whilst councils received £147 million of government funding to mitigate the impacts of this year’s council tax freeze, there are longer-term financial consequences as future rises will provide less income for councils. Also, a third of councils say the government funding does not fully-fund the freeze.
The full impact of proposed savings by councils on service delivery and communities is unclear. There has been significant public opposition in some council areas to cuts to services, with new and increased charges also affecting people.
We will continue to monitor this area closely, as councils must meet savings in full this year. Failing to do so will intensify and exacerbate the impacts on services in future years, as further savings will be needed.
Councils must look to the future as they make increasingly difficult decisions to deliver savings, at scale, to address projected budget gaps. Planning and delivering on transformational change are vital if councils are to be financially sustainable.
Derek Yule, Member of the Accounts Commission said: “It’s getting harder for councils to do more with less. They have to find and then deliver significant levels of savings to address budget gaps.
“Fully engaging with local people and being clear about the different and difficult budget choices is vital, whilst understanding the impacts on the most vulnerable.
“Councils need to improve the way in which they present financial information, and do this in a clear, consistent and accessible way.
“The Accounts Commission calls on councils to increase the accessibility and transparency of publicly available budget information. This will allow for improved comparison between councils, particularly around key information including actions to tackle existing and future budget gaps, as well as savings plans.”
The latest Deadline to Breadline report from Legal & General has found UK households’ financial resilience has shrunk by 21% since 2020 (from 24 days to 19 days)
People overestimate (by nearly six weeks – actually 41 days) how long they could fund basic living costs (such as housing costs, loans/ credit card repayments, utility bills and food) if they lost their income
Cutting back has become the norm but the 5 million poorest workers in the UK have no financial safety net in the event they lose their salary
On average, working households are only 19 days from the breadline, according to a report from Legal & General. The new research has shown that households have seen the amount of time they can fund basic expenses decrease by 21%, five days less than in April 2020.
Households have average savings of £2,431 and debts of £610. Accounting for average daily expenses of £93, this would see the average household run out of money in less than three weeks if they were to lose their income.
The research found that most people underestimate how long their money would last, assuming they would have 60 days of breathing room were they to lose their job.
With household costs increasing significantly, and more businesses under pressure, this has raised concerns that many people across the country could be especially vulnerable to financial shocks should the worst happen.
Household energy bills, for instance increased by 54% in April 2022, a record increase, and are likely to rise substantially again in October and the New Year. 2
Cutting back ‘the new norm’
While a quarter of households are yet to notice an impact from the increased cost of living, cutting back – on both essentials (69%) and luxuries (81%) – is the new norm. Even the majority of those with no debt and a higher income (over £50k annually) are being more cautious. 61% of those with a household income of over £50k are cutting back on essentials.
Nearly 2 million adults have no money left each month, a rise of 330,000 in the last 2 years. Concerns are particularly high for the UK’s poorest workers. Those earning under £20,000 a year – 5 million people in the UK – are living paypacket-to-paypacket and the average household in this group has no safety net should the worst happen.
Legal & General’s recent Rebuilding Britain Index also found that the cost of living crisis is increasing inequalities between different parts of the country, disproportionately affecting households in areas where there is a greater need for levelling-up initiatives.
Older workers most at risk of overconfidence
Older workers in the UK (55 to 65 years old) tend to have higher levels of financial reserves they can draw on, meeting their expenses for an average of 99 days in the event they lose their income. However, these households are also the most likely to overestimate their safety net, assuming they can manage for at least 180 days.
This raises concerns as older households have less time to build their savings back up before retirement and typically find it harder to find new roles following redundancy.
Bernie Hickman, CEO, Legal & General Retail, said:“Our latest research presents a challenging picture for working households across the UK. We often talk about managing money month-to-month but, as our findings indicate, for some it’s a case of day-by-day.
“The cost-of-living crisis is squeezing the purses of people all over the country, leaving households of every shape and size with money worries. The fact is there is only so much people can do to manage their budgets in these difficult times but there are resources available that can help.
“Half of all people in the UK (52%) haven’t taken advantage of financial guidance available, including free services like MoneyHelper, to help make the most of what they have.
“It may feel overwhelming but we encourage people to do what they can now so they are best prepared for a further squeeze on finances coming this autumn.”
Legal & General’s Deadline to Breadline report, published later this year, will explore the financial resilience, security and engagement of working households across the UK.
To help people better understand their money and make informed decisions, the insurance and retirement provider has put together a financial safety net content hub signposting tools and resources.
With food prices rising amid the cost-of-living crisis, parents are being provided helpful ways to feed their children during the summer holidays.
The penny-pinching experts at NetVoucherCodes.co.uk have looked at affordable ways to plan family meals throughout the summer break.
As supermarkets and fast-food chains increase their prices at the highest rates in over a decade, many parents are worried about the cost of feeding the kids during the holidays.
To support parents in the UK, restaurants and garden centres are offering discounted meals for kids to eat out, but there’s also simple methods to save money when cooking for the family at home.
Mitch Barnes, online consumer expert from NetVoucherCodes.co.uk said: “We wanted to give parents a helping hand this summer, as many will feel the pinch of rising food costs in their weekly expenses.
“There are numerous schemes available this summer with a wide range of pubs and supermarket restaurants offering special discounts for kids to eat out.
“But we also wanted to provide simple ways for parents to save money on making meals at home for their children during the holidays.”
Here are NetVoucherCodes.co.uk’s budget-friendly ways to feed your kid on a budget this summer:
Picky bits for dinner
A classic British summer favourite which many households are familiar with this summer. To make the most of the leftover meals, leave them in the fridge overnight and get creative about which bits can be used for dinner. This tip will save you from making a last-minute trip to the supermarket.
Batch cooking
Many parents use this effective way to make batches of school lunches in the week. Use this tip throughout summer by freezing your food and allocating which days the kids can tuck into a delicious meal without going out to buy more ingredients.
Shop around for summer deals
If the local supermarkets are near one another, don’t be afraid to venture out to each store to work out which has the best offers. Most shops will be near the end of summer discounts, which means the chances of finding even better deals are at an all-time high.
Discounted pub meals
Local pubs are providing a variety of discounts for kids to eat cheaper this summer, from half price fish and chips to chicken nuggets for a dime. Head down and find out which are available.
A trip to the garden centre
Taking the family to the garden centre is the perfect summer day out, with fresh flowers, gardening tools and this summer – discounted meals. Lots of centres are taking on the helping kids this summer initiative, so look up your local garden centre to see what offers are available.
Cheap meals at supermarket restaurants
Throughout the summer holidays, many supermarket chains are offering further discounts on kid’s meals to help with the rising food costs. Have a look at which ones are offering free meals, with many promoting a £1 dine out option.
‘Once a week’ rule
Set some time aside for a family meal out by using the ‘once a week’ rule where you either dine out weekly or you get a takeaway of your choice as a family treat. This way you can plan around your food shops so less food will be wasted, which will also help to prevent overspending allocating food budgets.
Social media budget recipes
Everyone has a favourite social media recipe which has become a weekly make. But if you’re unsure of any meals which can be added to your cookbook, explore social media apps for simple recipes which will cost less than a fiver to make.
Family pizza making
Instead of the Saturday night takeaway, it can be a proper family get together making your own homemade pizzas. While the children are off school it’s a perfect initiative to use this to spend quality time with them, without having to splash a fortune on takeout.
Yellow stickers before scheme ends
The best before scheme is phasing out, so it’s important to make the most of a late minute dash to the shops for reduced labelled food. Have a look in the evenings and on a Sunday afternoon to have the best chance of securing food on a budget.
Family meal plan
It’s best to be organised when planning meals to save the extra pennies. To make this more creative, mark each day with a different colour pen and decorate with stickers when it’s time for a special dish or a day when you’re dining out.
Try veggie days
Meats typically cost the most on weekly meals. If you decide to swap the meat for veggie choices it can save around a third on select meals during the week. Have a look at meals which don’t involve meat or try out some delicious veggie options for half the price.
For budget-friendly ways to feed the kids during the summer holidays, head over to NetVoucherCodes.co.uk.
Financial expert explains the money-saving trend taking TikTok by storm
‘Cash stuffing’ is a money-saving technique currently blowing up on social media.
With the cost of living crisis impacting the majority of the UK, Gen-Z and Millenials are looking for new ways to save. Within the past year, Google searches for the term ‘cash stuffing’ have increased by 274% (Source: Google Trends/Glimpse) and the TikTok hashtag has generated over 498 MILLION views to date.
Dan Whittaker, Personal Finance Expert at CashLady.com, has released comments explaining the trending method of saving at home, how it works, along with the downsides:
What is ‘cash stuffing’?
“Cash stuffing is a method of saving money by physically withdrawing money from your bank account and organising it in a folder system.”
“Using a personalised folder containing several labelled envelopes, savvy savers divide their monthly outgoings into categories, label each envelope with a category, then select a budget for each category and put the allocated amount of cash into the envelope.
“For example, if your monthly take home pay was £1,000, you would make your essential payments as normal, such as rent, mortgage and bills. Then, you split the remaining money into several categories within your folder.
This could be for things like ‘the weekly shop,’ ‘birthday funds,’ ‘socialising,’ ‘holiday savings’ or ‘pocket money for kids.’ Each category and its envelope would contain the exact amount allocated in your budget.”
“The technique is also sometimes referred to as the ‘cash envelope system’.”
“At the end of the month, you can see clearly how much money you have spent in each area and track it on a spreadsheet. You can then readjust your budgets for the next month to stay on track. If you’re lucky enough to have funds left over, these should be moved into a separate folder which acts as bonus savings for whatever your ultimate saving goal is.”
Why does it work for some people?
“This method of saving can be a great way to keep you motivated to achieve your savings goals. Breaking down larger savings goals into smaller monthly targets makes the task of saving less overwhelming, and being able to literally see the money saved each month can lead to a greater sense of achievement.”
“Also, seeing your money physically dwindle can make you more aware of the current state of your finances. Using Apple Pay, Paypal or even online banking can sometimes feel as though you aren’t actually spending money as there is no physical cash exchanged. With cash stuffing, you have a visual representation of your earnings and outgoings which can lead to a greater sense of awareness of your finances; when you see what you’re spending, you think more about what you’re spending.”
“This is perhaps why the method is particularly popular amongst young people, who have been brought up using online banking and are seeking a new way to view and manage their money.”
“Another bonus with this method is that you’re avoiding the risks that can come with credit cards or overdraft fees. Avoiding credit cards altogether stops those prone to overspending from racking up debts, as once your monthly budget is gone, it’s gone.”
What are the downsides? “Security is the biggest downside. When your money is locked away in your bank it is protected by the banks security systems and protected by schemes such as the Financial Services Compensation Scheme.”
“However, with your money living outside of your bank in cash form, it may be more vulnerable to theft, loss or damage (for instance from fire). If this were to happen then you would essentially have no recourse to recover that money. If you are interested in this technique, investing in a safe or something similar would be advisable.”
“You also aren’t earning any interest on your money while it is not deposited in a bank, building society or other savings scheme.”
How can I do it?
“If you want to give Cash Stuffing a try then firstly, you need to think about what you typically spend money on. Dividing your usual spending into categories will help you to start your envelope system. Spends such as shopping, dining out, entertainment, petrol, gifts and groceries might be the most consistent monthly costs to begin with.”
“Then, think of your longer-term savings goals. Assign an envelope for this, where you can start to deposit any spare change at the end of each month. This could be for a car deposit or saving for a renovation or holiday for example, but having a specific goal is a great way to keep you motivated. Having these additional folders means you’re always allocating some money to long-term goals.”
“Next, you need to work out how much money to assign to each category. If you know you spend too much on socialising, then lower your budget in that category, and so on. After you’ve budgeted, it’s worth creating a spreadsheet to track your spending, simply writing down how much you allocated and then spent that month. This creates an awareness of your spending habits and helps see where you went right and where you could cut back. Any leftovers can be added to your long-term envelopes to encourage you to keep going.”
“The important thing is to only spend what is in that envelope. Restrict your spending to only using the allocated amount on each category and you should have savings in no time.”
Research from Royal Bank of Scotland reveals Scots spending priorities in 2022
Young people battling desire to splurge post-pandemic with need to budget for the future
Soaring energy costs identified as key concern
As the country begins to look at life beyond the pandemic, new research from Royal Bank of Scotland reveals that nearly half (42%) of young people surveyed in Scotland view spending money on fun as more of a priority post-lockdown.
Despite the renewed sense of freedom and recent relaxation of restrictions, young people are struggling with an internal conflict between the desire to enjoy life and pressures to save, with as many as 85% of 18 to 34-year-olds feeling guilty when splashing their hard-earned cash on themselves.
This is further compounded by social situations, where nearly two-thirds (63%) of 18 to 34 year-olds admit to feeling pressured by their friends to spend money – even when they feel they don’t have enough cash to spare.
Contributing to this feeling of guilt, just over half (51%) of those interviewed confessed that they don’t have a monthly budget set aside for having fun, with nearly eight in ten (79%) admitting that they will need to rethink their spending this year in the wake of energy price rises.
Respondents cited the pandemic – and prolonged periods of lockdown – as key motivators for their changing spending patterns. Almost two-thirds (63%) agree they’re happy to splurge if it means the chance to make memories with friends and loved ones, whilst a third (33%) are keen to make up for the experiences they lost during lockdown.
The findings suggest that the desire to spend more money in 2022, combined with a lack of budgeting confidence and the rising cost of living is mixing together to create a financial storm.
Addressing some of the key concerns raised in the survey, Royal Bank of Scotland is launching a new campaign to help young people balance their longing to make up for moments and memories lost to the pandemic, with the need to set realistic and achievable budgeting goals.
Backing the campaign to support young people, social wellbeing analyst and award-winning businesswoman Charlotte Armitage said: “Dealing with anxiety related to your personal finances is one of the most pressing challenges coming out of the pandemic.
“Financial goal setting can be an effective strategy against the struggle. Momentum is critical and if you have a long-term savings goal, you need to break it down into manageable milestones, give yourself some easy wins and reinforce positive actions.
“After the past few years, it’s certainly okay to have fun and spend your hard earned money on yourself. Taking stock of your finances and getting a clear picture of your spending and saving will allow you to spot those areas where you can make small changes without sacrificing fun, allowing you to create memories and be confident about your financial future.”
Royal Bank is committed to improving the nation’s financial capabilities and will continue to offer every person in Scotland a free, judgement free Financial Health Check. The importance of such services is demonstrated in the research, with over one-fifth (22%) of respondents aged 18-34 citing a lack of knowledge as a reason why they don’t have a financial plan whilst almost one in five (19%) feel they are unable to afford a financial advisor.
Royal Bank is also encouraging customers to make use of new features available through its award-winning app such as the new ‘spending’ and ‘savings’ tabs, which allows customers to easily understand where their money is going and how they’re tracking against their goals.
Commenting on the findings, Malcolm Buchanan, Chair, Scotland Board, Royal Bank of Scotland, said: “It’s vitally important that we continue to listen to young people and understand the everyday challenges they face when it comes to managing their money.
“Whilst everybody’s financial situation is unique, it is through research and dialogue like this that we can design effective solutions and provide the tools to help make dealing with money easier for our customers.
“Royal Bank is committed to providing everyone with the support and skills they need to make responsible financial decisions, which in turn, will help them have fun and make memories.”
Royal Bank continues to make financial management easier and more accessible by providing the following:
· Financial Health Check – A free 20-minute conversation with a banking advisor who provides guidance to make banking simpler, as well as tips for everyday spending and achieving future goals. This could include setting savings targets, advice on tracking monthly spending and creating budgets. Customers can choose to chat in a branch or over the phone. personal.rbs.co.uk/personal/financial-health-check.html
· Royal Bank of Scotland app – Customers using Royal Bank of Scotland’s award-winning app are able to easily see where their money is going with the new ‘spending’ tab which will show them how much they’re spending by category each month, helping them stay in control of their money.
· MoneySense – MoneySense provides parents and teachers with the tools to give young people the confidence to use money responsibly on their own. The programme is the longest-running bank-led financial education programme for young people in the UK. MoneySense is fully digital and downloadable, and can be delivered by teachers in schools.
Paul Wilson, Personal Finance Expert at CashLady.com, shares his ideas on how to keep going with Veganuary if you’re on a budget.
Veganuary is a great time to try starting some new habits and making a change to your lifestyle. If you’re not used to a plant-based diet, you might be starting to find it tricky to stay on track.
We know more about money than making delicious meals, but with a few weeks left of January, here’s some tips on how you can keep up with Veganuary without it costing the earth:
1.Yellow labels
Fresh produce is by far the most likely to be reduced in the supermarket. Different supermarkets generally reduce their stock at different times; ask in store when they start marking down prices and make sure you get there when they do. You can pick up lots of reduced fruit and vegetables to whip up stews and curries with.
2.Bulk buy
If you’ve found a few recipes you know you like and have gotten the hang of cooking plant based meals, then stock up on the things you know you’ll use. You can make savings by buying multipacks rather than individual items every time you need them
3.Save your leftovers
Don’t throw away what you don’t eat. Save it and use it for lunch the next day. Saving money by not buying yet another meal deal could help see you through until the end of January.
4.Shop online
Type ‘meat free’ or vegan into your shopping app and it will bring up all the relevant options. You can then see which are on offer or are cheaper and choose those instead of more expensive options. Rather than planning what you are eating and then buying those ingredients, do it the other way round and buy the items on offer then make a meal from them.
5.Offers everywhere
If you’ve had enough of cooking and fancy a Friday night off, January couldn’t be a better time. There are a huge number of restaurants trying to tempt us back in with 50% offers. Be sure to search for offers in your area before you book anywhere to make sure you’re getting a good deal alongside a good meal.
6.Eat more veg
Meat or dairy substitutes can be costly. Eating meals that are vegetable based means you aren’t forking out for big name brands or packaging. Cooking from scratch can really help you keep a handle on what you spend and also be much more exciting than a pre-packed burger.
7.Visit the greengrocer
If you have the time, get down to the greengrocers. Just as with the yellow labels, you can ask if they have any produce that is near it’s best before and ask for a discount. You can also buy in singles rather than pre-packed bundles, and find items that might not be in the supermarket to give your diet variety and inspire you to keep going.
8.Meal boxes
If you’re really struggling to come up with new dinner ideas in Veganuary, then you could try signing up to a meal subscription service. They always offer introductory discounts, like 50% off your first box, and you can cancel any time. You can select only vegan meals and they send you recipe cards with step-by-step instructions. Keep the recipe cards, and once you’ve got the hang of it, cancel the subscription and start buying and making the recipes yourself.
9.Pin It
There are so many resources on the internet to find new vegan recipes, but it’s easy to forget where you saw them. Create a board on Pinterest and save all your favourite meals on there. That way, you won’t run out of ideas and end up spending too much on takeaways or meals out.
Paul Wilson is a Consumer Finance Expert at Financial Conduct Authority authorised and regulated credit broker CashLady.com
Finance can be a difficult topic to tackle with young children, but teaching them to have a healthy relationship with money from a young age is important to lots of parents around the globe.
With this in mind, financial experts from money.co.uk have compiled a list of their top 10 tips for teaching your children about money.
1. Start with the basics of money and finance
How you introduce money to your children will partly depend on their age. A good place to start is getting children comfortable handling cash and coins. Explain to them how money is used to buy things and that it must be earned before it can be spent.
2. Speak openly about small financial decisions
Start getting your child involved with minor financial decisions, such as which brands and items to buy when shopping. This way your child is able to understand the decisions you make while also feeling in control of certain financial choices.
Older children could also help with budgeting while shopping if you ask them to keep a running total of the items you buy. Not only will this help their maths skills, but it can also help them to understand how small items can still add up in price and not everything is affordable on a budget.
3. Try simple games and toys with younger children
Creating easy monetary games such as counting pennies can help your child understand the value of different denominations of money. Try using a pile of 1p coins and asking your child to match the number of coins to the price of a higher value coin, such as 10p or 50p.
4. Set a good example with your own finances
There’s no two ways about it, children learn money habits from their parents. Showing them small activities such as checking the receipt after your shop or putting money into savings can start developing positive habits from a young age.
Encourage your child to ask questions without repercussion in this setting. While you might not necessarily have all the answers, opening up a dialogue is a healthy way for your child to learn more about finance.
5. Use pocket money as an incentive for small tasks
Using pocket money as an incentive to do chores around the house not only helps you, but it also helps your child learn more about the value of money and what it takes to earn it. Creating a simple plan with a set amount of money for different tasks, along with caps per week or month, is a great way to help your child start understanding where money comes from.
6. Use pocket money to teach children how to save
Alongside teaching children the relationship between work and money, household chores and pocket money is also a great opportunity to show children how to save. If your child has shown interest in a more expensive purchase, you could set them up with an old-fashioned piggy bank where they can ‘deposit’ their earnings or chart for them to fill out so they can track how much money they have.
7. Reward them by learning about interest
Paying small amounts of interest on the money your child has saved is a helpful way to encourage them to keep saving. Older children will be delighted to learn that the interest they earned last week can be used to earn more interest if they save until next week.
8. Use trips to the shop to learn about saving vs. spending
Another practical way to teach a child about the benefits of saving is by visiting shops. Allow them full control of their own money on the understanding that if they don’t have enough they won’t be able to borrow any more. The more they feel in control of their own finances, the more they will be able to make sensible decisions when it comes to spending or saving.
9. Use digital tools with older children
There are a whole range of online tools for teaching older children about online banking and using cards for payments. One of the leading products on the market is GoHenry, which is suitable for those aged six and up, costs £2.99 a month and allows parents to set strict spending limits, monitor what their kids are buying and where they are spending their money.
10. Teach older children about selling old toys for extra money
If you don’t want to give your child pocket money, teaching them about ways to earn money for themselves is a helpful alternative.
When they’re old enough, you could ask your child to go through their old toys, books and clothes and set aside which ones they’d like to sell.
You can then sell these on their behalf through online auction sites such as eBay or Facebook Marketplace. Not only is this a great way for your child to feel independent in earning their own money, it presents an opportunity to also discuss how to use the internet safely.
Salman Haqqi, personal finance expert from money.co.uk, speaks about why teaching children how to handle money from a young age is so beneficial.
“Creating an environment in which you are able to speak more openly with your children about your financial decisions is vital to engaging them from a young age on the value of money. Showing them how to make choices when shopping will set up good habits and understanding of managing money.
“It’s important to make sure your lessons are age-appropriate and that you continue to involve and teach your children about money as they grow. A healthy relationship with finances starts at a young age, and children learn most of their habits from their parents.”
This week is National Care Leavers Week and the UK’s community bank, Metro Bank, is supporting the Care Leaver Covenant – a joint promise made by the private, public and voluntary sectors to provide support for care leavers aged 16-25 to help them to live independently.
Around 11,000 young people (aged 16 – 18) leave care each year and the aim of the Care Leaver Covenant is to provide them with additional support. The Covenant centres around five key areas – independent living; education, employment and training; finance; safety and security; mental and physical health.
Since signing the Covenant, Metro Bank has started to deliver new bespoke Money Zone sessions for young adult care leavers. Money Zone is a series of financial education lessons about budgeting, saving and banking that Metro Bank has already delivered to over 203,000 UK school children.
Metro Bank has also introduced a special identification and verification process for care home residents and care leavers to make it easier for them to open bank accounts and become financially independent.
In addition, the Bank has worked with its recruitment team and the Care Leaver Covenant to communicate its “hire for attitude and train for skills” ethos by promoting roles that are available and suitable for young adults across the business.
“We are committed to supporting young adults leaving the care system,” explains Kat Robinson, director of customer experience at Metro Bank. “We are helping them take their first independent steps towards managing their personal finances.”
New research by credit reference agency Equifax reveals that the financial uncertainty of 2020 means 85% of people in Scotland will change the way they manage their personal finances in the immediate and long-term future.
Although one third (34%) of Scots said 2020 brought greater financial uncertainty, 16% have entered this year feeling positive about their finances. 54% of those who experienced financial uncertainty in Scotland said they are now trying to be more frugal, compared to 46% of the wider UK.
Key data:
46% of residents in Scotland are trying to spend less disposable income each month
31% of Scots feel confident about their finances going into 2021 compared to just 19% of the UK as a whole
70% of 18-34-year-olds across the UK said 2020 brought them financial uncertainty, steadily decreasing across all age groups with only 11% of those aged 65 plus feeling the same
As a result, 63% of 18-34-year-olds plan to change the way they manage their money in the immediate future, with 32% starting to save or put money aside
52% of UK women compared to 38% of men who experienced financial uncertainty in 2020 said they will be more frugal in 2021
41% of UK women plan to ‘buy more things I need and less things I want’, compared to 33% of men
Lisa Hardstaff, Head of Customer Experience at Equifax commented: “Our latest research suggests vital personal finance lessons have been learned in this pandemic, and more people are looking to better manage their money.
“54% of those surveyed in Scotland said they are trying to be more frugal and it’s encouraging to see that 13% are proactively researching ways to manage their money. 19% of the region are also starting to put money aside and will be using spreadsheets and apps to help them budget.”
Despite the huge financial uncertainty of last year, the research revealed that 28% of residents in Scotland used credit less than they did in 2019. However, 14% used short-term ‘Buy Now, Pay Later’ services for their online Christmas shopping.
Clare Seal, author of Real Life Money and frugality champion added: “One of the silver linings of last year is that as a nation we are now being more open about financial concerns and mental health issues. In fact, 8% of the region said they are proactively seeking more financial advice from family and friends.”
As the Christmas credit card bills land on people’s door mats, Equifax has a wide range of useful articles and tips in its Knowledge Centre. It also has an online budget planner that allows people to monitor their income against their outgoings, to help them take control of their finances now and in the future.
“A financial planner not only helps manage outgoings each month, it allows people to prioritise important financial commitments like mortgage payments, council tax, etc” concluded Lisa Hardstaff.
“It can also help to see where money can be saved, such as unused memberships or cutting back on food bills. If we are in the Year of Frugality have a clear view of all outgoings is essential.”
