VIRUS GETS MORE OF US SAVING FOR A RAINY DAY
MAJOR SHIFT IN ATTITUDES TO SPEND CULTURE
CORONAVIRUS has caused much financial hardship and disruption to many people’s lives.
However, it has also triggered a huge shift in attitudes – as threequarters of people say money is now more important to them.
Research from the Mortgage Advice Bureau reveals that a third of people plan to save for a rainy day, while one in four intend to plan ahead more, realising that you never know what’s around the corner.
Despite the challenges faced, almost a third of those surveyed said the pandemic has had a positive impact on their household finances – they have spent a lot less and it has given them the chance to save a bit more.
Brian Murphy, head of lending at the Mortgage Advice Bureau, says: “Covid-19 has tested our resilience for how well we can cope during unexpected financial events.
“Although everybody thought the impact would be more of a financial pinch at the beginning, the coronavirus became a financial punch for the majority of us, and with it brought to our attention how we really think about money and the things in life that matter most.
“Crucially, the pandemic has heightened the importance of having a financial buffer for unexpected events, such as job losses or salary reductions.
“It also seems that some people have picked up good habits – such as saving for a rainy day – which can only be a positive for their future.”
Hayley Busby, from Barking, Essex, has managed to boost her savings towards her house deposit while in lockdown.
Hayley, 26, who
Hayley has saved home deposit sooner than expected works in marketing, has saved an extra £400 a month, which she would usually have spent on travelling to work, going out and takeaway coffees. She says: “My partner and I are buying a threebedroom newbuild, and were on track to have the £21,000 deposit by October, but now we will reach our goal by the end of this month.
“Lockdown has made me think about how much I spend on things I don’t really need. I won’t be going back to spending £3 a go on takeaway coffees when I go back to the office. I’ll also be taking packed lunches – it’s so expensive buying shop-bought sandwiches every day.
“At first I found it hard during lockdown, and I know a lot of people have struggled and had a hard time. But it was a blessing in disguise for me to stay in and cut back. I didn’t get the usual fear of missing out you get when you cut back on socialising to save a bit of money – everyone was in the same boat.
“This has certainly been an eye-opener. I now know where I can carry on making savings, and feel better about moving into my own home and having more bills to pay out each month.
“Before it was the norm to meet friends in bars and restaurants, but you can still meet up and have drinks and food at each other’s houses – and have a good time.”
Halifax is offering new customers
£100 when they switch to its re-launched Halifax Reward Account. By using the Current Account Switching Service, the money will be paid directly into the new bank acccount before the seven-day switch process is complete. The account was created to reward customers who hold their main bank account with Halifax. On top of the £100, customers can choose one reward, such as stream two movies a month throughout the year (worth up to £120), one free cinema ticket a month for Vue Cinemas, a digital magazine, such as Cosmopolitan and Men’s Health, or £5 cash monthly. Plus, cashback with selected retailers.
■ Covid-19 has changed priorities for tenants in London. Fast broadband is the most sought-after feature as working from home for many looks set to continue into the future. This was the second most sought-after requirement pre-pandemic. Outside space is now the second most important, followed by nearby green areas in third place. Previously, these wishes were seventh and ninth most important.
Other things that will sway a renter are a concierge or on-site security, and transport links within a nine-minute walk. Transport links used to be the No 1 priority, according to research from letting and estate agent Benham and
Reeves.
Covid has brought to our attention the things in life that matter the most
■ Budget hotel chain Travelodge is celebrating 21 years of being by the seaside by offering more than 250,000 rooms for £34.99 or less at its coastal properties. It has 36 hotels close to UK beaches – the first to open was in Brighton in 1999.
Locations now include Blackpool, Bournemouth, Isle of Wight, Newquay, Plymouth, Scarborough, Southend and St Austell. To book a £34.99 room, which sleeps a family of two adults and two children, for stays until March 4, 2021, visit travelodge.co.uk.