Recent analyses by Virgin Money and Nationwide Building Society reveal significant changes in the spending and saving patterns of UK consumers, driven by the ongoing cost-of-living crisis.
Virgin Money and Nationwide Building Society have recently shared insights into the spending and saving habits of UK consumers during the winter months of December 2023 to February 2024, highlighting the impact of the ongoing cost-of-living crisis on personal finances.
Virgin Money’s analysis, based on transactions from their current account customers, reported a 26% increase in holiday-related spending compared to the same period last year, with a significant 82% rise in January 2024 alone. The data reflects a consumer trend towards investing in experiences and creating memories, with package holidays identified as a particularly popular choice, suggesting a strategy among customers to manage costs effectively. Graeme Sands, head of personal banking at Virgin Money, emphasized the balance customers are seeking between lifestyle spending and value.
Concurrently, a survey by Nationwide Building Society of 2,000 individuals pointed to holidays, home improvements, and debt repayments as the top reasons for saving money in 2024. Despite these goals, half of the respondents admitted to saving less monthly than before the cost-of-living crisis. The findings underscore the economic challenges faced by UK consumers, with 21% of savers not saving towards any specific goal.
Nationwide’s director of retail products, Tom Riley, acknowledged the impact of these challenges on saving behaviours and stressed the importance of staying informed about savings products and interest rates to maximise savings potential. With many individuals not reviewing their savings accounts’ interest rates recently, Nationwide encourages using services like SavingsWatch to ensure customers benefit from the best rates and products available.
These insights from Virgin Money and Nationwide Building Society offer a comprehensive view of current consumer financial behaviours, highlighting how the cost-of-living crisis is influencing decisions on spending and saving in the UK.
