A recent study by Barclays revealing what millenials are are most looking forward to as lockdown starts to ease also revealed many younger people have also been using the time to think about how they can boost their savings towards future goals, or set aside money for a rainy day.
The exclusive data shows that during lockdown 18 to 29 year olds have increased credits to their savings accounts by 3.8 per cent, and their savings balances have increased by 9.9 per cent – the highest percentage increase than any other age group.
Supporting Barclays’ data, a survey of over 2,000 adults revealed the average amount saved by millennials since lockdown officially began on 23rd March sitting at £604; 11 per cent more than the national average of £545.87.
Dr Peter Brooks, Head of Behavioural Science at Barclays shares his tips on how you can make the savings habits you’ve learned in lockdown stick:
1. Every little counts: Lockdown has shown many of us the big effect that comes from not having all those little amounts, that you don’t even think about, leaking out your account. From snacks on the go, to petrol or public transport costs, the small things really do make a difference to the overall state of your finances. Therefore, as you look forward, don’t forget the real value that controlling the small expenses can have in helping you save each month.
2. Give your finances a health check: A great exercise to do both now, and again when life starts to feel a bit more normal, is to take a look at your bank account and assess what you’ve been able to spend and save money on and what changes you can realistically keep. Identifying what you could credibly do without, and moving that spend to straight savings will help build up that pot of money quicker than you think. Money management apps can help make this painless.
3. Pay yourself on pay day: It’s worth getting into the habit of moving money straight into a separate savings pot every time you are paid so it’s a proactive decision, rather than a tentative end of month aim. If you’ve taken the money out of your everyday account, you will also remove the temptation to dip into it as out of sight is out of mind.
4. Embrace the unexpected: People tend to be much better at saving windfalls of money rather than making saving part of their regular budgeting. But getting a windfall doesn’t have to mean winning the lottery. Why not move any refunds you received during lockdown, or the cost of any suspended memberships straight over to separate savings pot where you can keep it ready for a rainy day, or keep growing it towards a future goal.
5. Don’t make comparisons: It’s an unsettling time and we’re faced with people documenting their lockdown lives online. Naturally, we can start to compare what we’re doing and the same can be said for how we spend our money now and in the future. It is often the experiences rather than the items our money buys which have the biggest effect on our happiness. Try to ditch any comparisons with what your friends are doing with their money and focus on what works for you.
