Households across the country have slashed their personal spending during lockdown and saved an average of £2,879 each during the coronavirus pandemic, according to a new report.
The study by online financial comparison website money.co.uk shows that 71 per cent of the UK have saved £221.50 every week as a result of the restrictions imposed by the Covid-19 crisis.
The personal finance experts at money.co.uk have produced a lockdown best savings calculator to show exactly how much households could save if they continue to keep their spending habits in check.
Salman Haqqi, personal finance expert at money.co.uk, said: “During lockdown, many people have cut back on their spending on non-essential items.
"The savings have been largely made by households cutting back on the amount of cash they spend on items like alcohol, cigarettes, clothes, make-up, cosmetics and grooming products, meals out, haircuts and beauty treatments, plus shop bought lunches and takeaway coffees.
“They’ve also spent less because many are not having to use their car to travel to work and have also cut back on other outgoings like sports and gym memberships."
The biggest savings made by UK households has been on:
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buying clothes - £34.39 per week on average
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running the family car - £34.14 per week
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paying for meals out - £33.57 per week on average
Many have stopped buying clothes because staying at home has meant there’s no need to upgrade their wardrobe, the report reveals. Some have even started making their own clothes, saving significantly on the cost of shop bought items.
An average weekly saving of £27 per household was made as a result of cutting back on the amount of alcohol consumed during lockdown.
Savings of around £25 a week have been made on haircuts, spa treatments and manicures while reduced spends on shop bought lunches and takeaway coffees accounted for a further boost of £21.
If households continue to save at the same pace now that lockdown is relaxing, they could save an impressive £8,638 on average by the end of 2020.
Salman Haqqi added: “The biggest opportunity to save money, according to our study, is in cutting back on going for meals out. More than a third of the 2,000 people we surveyed said that would be the top priority for continuing to save money.”
Top areas for continuing to save money post-lockdown include haircuts, buying cosmetics or grooming products, gym and sports memberships and cigarettes, the study reveals.
Try the money.co.uk lockdown best savings calculator here.
