Saving up cash for a rainy day is important for all families, but spending our hard-earned money well is just as vital.
New technology is already making it easier for a new generation of “smart consumers” to shop around for the best deals and compare prices and products across the high street and online.
For many, carrying out some internet-based research before making a purchase has become a way of life.
Research now, buy later
A survey by YouGov for Carphone Warehouse shows that nine out of 10 (89%) of the 3,500 adults who took part have already looked up the product they’re going to buy before they visit a store, meaning they are better prepared to spend wisely.
These savvy shoppers use online reviews and comparison sites to check what others think about products before they buy, meaning they are less likely to be seduced by special offers once in store, or influenced by hard-sell tactics. What’s more, many are doing their research a month in advance, suggesting that these purchases are carefully thought through before a shopping trip is even made.
This trend, which is the opposite of the impulse buying sprees that got so many families into debt before the financial crisis, suggests that Britons have come out of the recession as more sensible spenders than when they went in.
The YouGov survey dubs the phenomenon “smarter comparison”, which independent retail expert Clare Rayner says is a blueprint for our spending futures: “The future for retail is not online or offline, but a combination of the two, something that lets customers enjoy the best of both worlds.”
“Increasingly sophisticated and flexible technology is allowing customers more and more freedom to choose and cater to their own particular tastes.”
Reviews now drive our shopping choices
Shopping smart is not always about buying the cheapest possible product. Using online review sites is a way of assuring that families don’t “buy cheap and buy twice”. Instead, these families are taking advantage of feedback on which products will last.
Sensible shoppers are also learning to use different spending methods to help them budget. Credit cards have the advantage that families have additional consumer rights if a product is not satisfactory. However, many families still choose to spend with cash because it helps them to balance the budget.
“Some customers feel that the tangibility of cash means that they know exactly how much they have available to spend.
“This is particularly important to many on low incomes who want to tightly control their spending,” says Neil Aitken of the Payment Council, which represents card issuers in the UK. “We are not expecting cash to disappear any time soon.”
Opinions expressed here do not necessarily reflect the views of Sainsbury’s Bank.
SaveBack is a unique way of saving. Brought to you by Sainsbury’s Bank, it is the first ever UK service to let customers deposit money when they pay for their shopping using a debit card. When you open an Extra Saver account with the SaveBack facility you’ll receive a SaveBack card, which you can then use to deposit money into your savings at the checkout while you do your weekly shop. SaveBack is available at all main Sainsbury’s stores during opening hours. Not available at Sainsbury’s Local stores. Please refer to www.sainsburysbank.co.uk to find a main store near you.
Our savings products are covered by the Financial Services Compensation Scheme
