This week is UK savings week. Each year around this time, UK Savings Week produces articles and advice about savings. This helpful advice is for individuals that are looking to start saving and those that have already got a bit of money in their pot. But for businesses, too, it’s important to understand what people are spending their money on. So this week’s blog from Direct365 is based on exactly that. Using our customer knowledge, and a bit of research too, we’ve brought together the top five most popular things customers spend their savings on. Now, this list isn’t cut and dry, and every saver is different, but these things are what we think customers are saving for. And our list doesn’t include saving for a rainy day. So settle down and take a look at our guide to customer spending.

PS – we’ve even included a bonus 6th option too.

 

Facts About Savings in the UK

  • 53% of people consider saving for the future an important task. This is up from 44% in 2020.
  • Saving looks to be becoming more popular. 22% of Brits plan to open a savings account in the next 12 months.
  • 83% of Brits agree with the statement “I am planning to save more money next year”
  • It doesn’t look good for the hospitality industry – 30% of people are looking to cut back on eating out to make savings.

 

5 Things Customers Spend Savings On

Now for the main event. Here are the five + one things we think the Great British public use their savings for.

 

An image of a wallet with payment cards.

 

Home improvements

Home improvement is one of the best ways to invest money into property. It adds value to your home, while allows you to enjoy the fruits of your savings right up until you sell your home. Alternatively, you may also see the value in extending your property instead of moving house. Using savings to improve your home is one of the most common ways to spend savings.

 

Vehicles

Saving for a car, or at least a deposit for a car, is something most people at some point. So it’s no surprise that this is something 17% of active savers are saving for. Getting the balancing act right between a deposit and an affordable level of finance is the key to buying a great car.

 

Holidays

Many people need to save money to go on holiday, regardless of the type of holiday. The bigger the holiday, the longer it will take to save up for. But an escape from reality is exactly what people need to recharge their batteries, and using savings for that is a popular way of paying. So much so that 35% of Brits say they are using their savings for a holiday.

 

Unexpected Events

Things can always happen in life. And whether that’s a DIY issue at home, or a TV on the blink, it pays to have savings readily available. Whatever the unexpected event, you’ll wish you had savings if you didn’t. And that’s the same for those that own businesses. You can never be too sure about what may come next.

 

Investments

Investing your money into bonds or stocks is a good – but risky – way to turn your savings into more savings. Now of course, this was serves as a high risk, high reward method, and can’t be advised by us. But it’s a popular way to use your money if you have that extra cash and can afford the risk.

 

Bonus:

Cosmetics

And one final way that customers spend their savings is on cosmetic work. Cosmetics, which would be considered both larger surgeries down to hair, make up and tattoos, is a popular way to spend hard earned cash. Because some of these procedures costs quite a lot of money, it’s always best to save up for these, or supplement payment with savings.

 

These are just a few of the things people would consider spending their hard-earned savings on. But based on our research, we think they’re the top 5 most popular. Got any other thoughts? Leave us a comment!

 


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