Lockdown lessons teach us benefits of frugal living

COVID-19 rules may be easing but almost three-quarters of us plan to stick to new money-saving habits established during the lockdown.

This means going out less, making fewer impulse purchases and buying clothes less often, in a bid to stop frittering away money.

Britons saved on average £581 each during the first three months of the crisis and Hargreaves Lansdown personal finance analyst Sarah Coles said: “There wasn’t much to love about lockdown life, but at least it was cheap.”

While one in five are desperate to start spending again, most are taking a more frugal approach.

Coles said many will have no choice, as incomes fall and jobs go, but others question whether their spending was necessary. “While the lockdown has taught us the value of being out and about, it doesn’t have to be as regular, or as expensive as before the crisis,” she added.

Many are looking to cut back on impulse purchases, others will save money by working from home. Coles added: “Ditching the commute for a couple of days a week could be a major cost saving.”

Separate research shows Britons putting bigger life plans on hold, by delaying getting married, starting a family or buying property.

Grandparents have also delayed plans to help younger family members financially.

Emma-Lou Montgomery, associate director for personal investing at Fidelity International, said the impact of Covid-19 will ripple through generations: “Pay cuts, job security concerns, volatile markets and a possible recession are just some of the reasons why many of us are rethinking life events.”