While the economic consequences of lockdown saw many households struggle, others have been able to save far more than usual.
We’ve have been talking to our clients and the Berry & Oak team to see how the lockdown has affected their finances.
Here’s a summary of a family of four with two school age children and how the lockdown affected their finances.
The family is increasing their savings for the first time since having children.
Lockdown was a worry at first as one parent is on furlough, so income is reduced. However, savings have been made due to lack of breakfast clubs, school meals, bus fares and children’s activity clubs. Not mention the gym membership, cinema trips, Friday night takeout, ice-cream in the park and petrol! It’s amazing how all this regular expenditure adds up.
All of this is being transferred from the ‘daily spend’ account to a savings account.
Some expenditure has increased though; mainly food and alcohol. The supermarket shop has to be done differently too – bulk purchases from the larger shops to avoid going out regularly and ‘treats’ from the local deli. The increase is modest though – because when it’s gone, its back to the store cupboard and freezer supplies until the next shop.
So, whilst the savings are being set aside for a replacement holiday, the family is very mindful that the employer might not survive lockdown or if furlough ceases before the employer can re-open, savings will be needed for day to day necessities.
Data suggests that UK households could have been saving an average of around £171 per week during lockdown, with pubs, restaurants and high street shops closed. Country wide, savers have stashed away a record £157bn as many day-to-day expenses disappeared.
Now restrictions have eased – with restaurants, pubs and non-essential shops open again – most will see their outgoings creep back up.
As you start to spend again, we thought that we would share with you our top tips on making your lockdown saving habits last for the long run.
During the month on our Social Media pages we will be sharing with you the top tips from the Berry & Oak team. If you are not currently following us, you can find us on Facebook here. https://www.facebook.com/BerryandOak/