Consumer spending growth slowed for a second consecutive month, and it seems shoppers are being more cautious with their buying decisions. Analysis indicates that the rising cost of essential items is leaving the UK population with less disposable cash for indulgent purchases.
Despite this, 46% of Brits say they will always find money to spend on areas that are important to them, with 45% regarding holidays as a priority. So, with this in mind, we asked some of the SynerGIS team how they would spend their savings.
Glenn Palmer, Director;
Sensible: If I were being sensible? Paying for my children’s education. The cost of private schooling is way too high and it can sometimes leave me demotivated, so I try to focus on saving for some individual classes like tennis, music and ballet.
Splurge: I love trying both new and established restaurants, following the Michelin guide and any recommendations I see or hear of. That is one of my most irresponsible spending habits!
What do you wish you’d known about money and savings when you were 18? I wish I had known more about the savings products on offer, including easy ways to invest in equity and bonds, and the risks associated with them.
‘British consumers spend £21.7 Billion on impulse purchases each year’
Marissa Arrows, Marketing and Digital Channels;
Sensible: I think my view of sensible spending would still fall within the splurge section, but if I were being really strict? I would reinvest in fixed-term accounts, so that my money is locked away and I would benefit from a larger sum in a few years time.
Splurge: I’m a bit of a shopaholic (putting it mildly), so given the opportunity, I’d probably spend all my savings on completely unnecessary clothing and shoes– but make sure there was a bit left to buy some extra storage!
What do you wish you’d known about money and savings when you were 18? That savings can start from the smallest amount, and keeping it in a fixed-term account will take away any temptation to dip in to it. I started saving in my early twenties when I sold a festival ticket and put the money aside in a drawer. It’s much easier to add to savings once you have that initial starting point, but putting it in an account with a competitive interest rate would have maximised my savings!
‘Households spend more than £45 a week on restaurants and hotels’
Aim for the Boundary
Matthew Pullan, Associate;
Sensible: Travelling to see family around the world and, on a more sombering note, car insurance.
Splurge: Without a doubt, I would splurge on a brand new cricket bat for the upcoming season, so I would have no excuse for not scoring any runs. A quick city break to Prague, Budapest or Venice wouldn't go amiss!
What do you wish you’d known about money and savings when you were 18? Don’t spend your student loan on clothes the moment you get it; food is important too. Tinned spaghetti is nice from time to time, but not twice a day.
Whether you’re aiming for a specific financial goal, or just trying to be smarter with your money, ensure your savings are working hard to give you the best returns. SynerGIS offers fixed-rate investment bonds, meaning you know exactly what you’ll get back before you invest. Plus you can use your tax-free ISA savings allowance.
SynerGIS is a brand name of GIS. GIS is regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Provided for informational purposes only. Not designed as advice. Speak to your IFA or tax advisor for advice tailored to your individual circumstances.