Families are feeling the financial pinch

BRITS ARE UNDER PRESSURE TO CUT BACK ON SPENDING, SAYS SURVEY

VER half of people in the UK say they feel pressure to cut back on their spending at the moment.

In an Ipsos MORI survey of over

2,000 bank account holders in the UK, almost two-thirds (63%) of people expressed concern about current levels of inflation.

Women and families appear to be most stretched – with 56% of females feeling under pressure to reduce their spending versus 47% of men.

Families in particular are feeling the pinch, with 60% of those with children saying they are under pressure to cut back versus

47% of those without children. Among those who describe their household financial situation as tight, the most common areas where spending has been reined in (versus 12 months ago) are shopping for leisure (48%), socialising/entertainment outside of the home (46%) and non-essential groceries (43%).

But they are far less likely to have cut back on entertainment subscriptions and personal electronic devices, with only 25% having done so in the last year.

With spending power reduced, almost six in every 10 people (58%) say they now spend more time looking for the best deals before spending money on nonessentials, such as clothes or holidays, than they did this time last year.

Women are the savvier shoppers. Almost two-thirds (62%) say they are spending more time seeking out the best offers compared to this time last year (versus 53% of men). When asked where they would cut back on discretionary spending if faced with less disposable income in 12 months’ time, people indicated that socialising/entertainment outside of the home (45%) and holidays/short breaks (44%) were the most likely areas to make savings in.

Lloyds Bank’s analysis of its own customer account data showed that the year-on-year growth in consumers’ essential spend for September was around 2%. This was the 16th consecutive month of year-on-year growth in essential spending.

Set a weekly or monthly budget for all your expenditure based on only what you can afford.

Have a small amount each week which you can save – this is your emergency fund for unexpected costs which might arise.

Track all spending, making sure you know where every penny is going. Pay the important things first – rent/mortgage, food, utility bills and council tax.