Financial ‘worriers’ on the rise in region

Financial provider NS&I’s most recent quarterly Savings Survey, which was released today, found that ‘worriers’ set aside an average of £53.47 per month, while ‘planners’ save nearly double, at £104.39 per month.

NS&I said that over the course of a year, ‘planners’ are putting away over £600 in extra savings – more than enough to pay off the average gas and electricity bill for six months.

It drew this conclusion based on the standard rate electricity and gas bill at British Gas, which comes to £99 – or £594 over six months.

The research also found that half of people surveyed in Yorkshire and North Lincolnshire spend more time worrying about their finances than planning how to save money, compared to two fifths nationally.

In the past 12 months, just over half of people in the region have looked for money-off coupons or vouchers, 29 per cent have taken a cheaper, but more time-consuming form of transport and two fifths have gone to several shops to compare the price of an item before buying it, the findings showed.

During this timeframe, 58 per cent of people in the region have bought a takeaway rather than cooked a meal, admitting to spending more money than needed to save time.

Gill Stephens, a spokeswoman from NS&I, said, “Our research suggests that the national trend of people getting into a cycle of financial fret is particularly pronounced in Yorkshire.

“For many people, time is spent worrying instead of focusing on money management and finances may suffer as a result, causing stress for some people.

“There are many ways that people in Yorkshire could save more, including using coupons, taking cheaper forms of transport or shopping around for the best price. By planning ahead and taking active steps, we can take more control of our money and work towards saving.”

She added: “So if you’re getting money worries, take some time out to review the situation and take action.”

Nationally, 41 per cent of those who worry about their finances at least once a year spend more time worrying than planning what they should do with their money, the research found.

Meanwhile, 10 per cent of those who worry about their finances at least once a day, check their finances once a month.

This “lack of action” is having an impact beyond people’s finances, said NS&I, as 25 per cent of people say they feel guilty when they overspend through lack of planning.

John Prout, NS&I savings spokesman, said “Britons seem to be getting into a cycle of financial fret.

“Time is spent worrying instead of focusing on money management and finances suffer as a result, causing more stress.”

Around a quarter of those who take active steps to check their finances regularly monitor different savings accounts to ensure they are getting a competitive interest rate. Similarly, 23 per cent have a direct debit set up from their current account to a savings account.

Almost two-fifths keep a daily diary of expenditure and 16 per cent withdraw a set allowance of money each week from their bank account.

NS&I’s research has found that among the quarter of Britons who don’t worry about their finances at all, many have invested time to make their money go further.

Mr Prout added: “By taking the time to manage your finances and setting realistic budgets and savings goals, people can reduce their financial worry. If you have a good friend or family member who doesn’t worry about their finances, why not ask them what works for them?

“It’s also a good idea to set time aside to compare financial products, using tools from the Money Advice Service, to make sure you are getting the best deal. Taking simple steps like these will lead to larger savings pots, as well as less worry.”

The NS&I Savings Survey was conducted by TNS OnLineBus, among 1,226 adults in Great Britain.

The survey has been running every quarter since winter 2004, and is a snapshot of how the nation is saving. The regional statistics were compiled using information gathered from people in South Yorkshire, West Yorkshire, most of North Yorkshire, East Riding of Yorkshire and North Lincolnshire.

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