So, what does the huge volatility mean for how Brits spend and save? Interestingly we found that, despite the turbulent world we live in, we’re still finding the time and the money to treat ourselves, particularly to those smaller luxuries in life and on those things which connect us with the people we love.
A combination of our attitudes to treats, low interest rates and a decline in disposable income mean that Britain has become a nation of “piggy bank savers”, where we have good intentions to save but we’re only putting away a little, not necessarily regularly, with our eye on the short, rather than the long-term.
Coupled with this, debt is higher than it has ever been before and is growing annually – with those starting out often relying on credit to achieve their goals. Underlying this is a lack of financial literacy, with almost universal agreement that we need to know more and that the best place for us to learn is at school. This lack of understanding is reflected in our use of online sources to research finances, but these often teach us how to get the ‘best debt’ or spend in the most efficient way.
All this presents opportunities for brands; for them to understand the role they play in their customers’ lives and help them navigate their financial future.
Alternatively, you can listen to our OMD UK podcast below: