Residents in the North West of England are most likely to regularly save and invest their money, a study reveals.
A total of 72% of the area say they carry out those financial habits, compared to just two-thirds of the UK (66%) who do the same.
Scottish and Welsh savers were the second most likely to put money away or contribute to an investment fund, according to research from Nutmeg.
Those living in the London boroughs were below the national average for the likelihood of saving money or investment, with just 61% doing so.
Also, around two-thirds (61%) of UK adults are paying off debts as quickly as possible, with two in five (39%) concentrating on their credit score too. In terms of tax breaks, just under half of men (45%) are likely to make the most of any allowances, compared to a third of women (34%).
‘More and more people engaged with money’
Meanwhile, baby boomers – born between 1945 and 1965 – are three times more likely to have an ISA than millennials and Gen Z adults aged between 25 and 34.
At a time when many savings accounts are beating inflation, Claire Exley, head of advice and guidance at Nutmeg, believes “now is a great time of year for a financial health check” ahead of the start of the tax year commencing on 6 April.
Exley said: “Personal finance tasks often find themselves at the bottom of our to-do lists, but it’s encouraging to see more and more people engaging with money and establishing good finance habits.
“In a complex financial world, speaking to a financial adviser about money goals was considered as important among 18-34-year-olds (22%) as with those over the age of 65 (23%). This younger group is also most open to paying for financial advice.
“In many respects, today’s young adults face increasingly complex financial decisions – be it understanding workplace pension arrangements, compared to parents who potentially benefitted from final salary schemes, to knowing which ISAs may be best for their goals.”
Exley added: “While this might feel daunting or difficult to know where to start, free guidance is increasingly available, while seeking out professional advice can really benefit us all, not just those with high incomes or lots of savings.”
The wealth management company provided five tips to maximise your potential savings’ amount.
Five ‘spring cleaning’ finance tips
- Be realistic about spending and saving – Putting even a little money aside each month for a rainy day will help in the long term, but make goals achievable. Scrimping on food or energy use can lead to you becoming resentful of your budgeting plans. This may lead you to overspend in the long term, rather than create a sustainable savings habit.
- Maximise Government help – Many people are entitled to more help with their finances than expected, while the Government also offers solutions to encourage savers and investors. If you do have money that you can put away for the future, tax-efficient products such as ISAs and pensions can ensure every penny has more of an impact, with no tax paid on growth, income or returns.
- Make the most of your savings – Higher interest rates mean you may be paying more on any mortgages or loans that you have, but the good news is that it also means better rates are available for your savings too, whether in a savings account or cash ISA. Making the most of rates on your savings will help your money grow and mitigate the impact of the cost-of-living crisis. However, you will have to shop around.
- Take a longer-term view with investing – Higher interest rates on cash savings are helpful, but inflation means your money may still lose value over time. This means you may need to think about investments, as studies show that, over time, investments tend to outperform cash savings.
- Check in on your pension – Workplace pensions can be really valuable because there are potentially two types of ‘free money’ on offer – contributions from your employer, and Government tax relief. If you can afford it, you might consider making extra contributions, however big or small.
