Survey says Scottish saving pots lighter than rest of UK
New research into people’s money habits has found that Scots have some of the smallest savings pots in the UK, and admit they would need to more than double their savings to feel secure.
According to research, commissioned by money app Plum, the average adult in Scotland has £17,599 stashed away for a rainy day. When asked how much money they would need to save to not worry about their savings, Scotland residents said hitting £36,139 would be the golden “stress-free threshold” they would need to cross.
This means Scots need to more than double their savings – topping them up by an extra £18,540 – to feel secure. Plum adds that, encouragingly, the majority of Scottish savers (53 per cent) believe they can hit their savings goal within the next five years.
The average Scots pot at £17,599 is significantly less than the UK average of £23,679. This means residents in Scotland have £6,080 less to fall back on.But, despite their overall smaller savings pots, just one in 20 (5 per cent) of people living in Scotland say they don’t have any savings at all – significantly less than the UK average, where almost one in ten (8 per cent) say they have no money saved up.
However, 19 per cent of Scots have less than £500 to fall back on .Just under half of respondents in Scotland said they always or often feel stressed about their savings, with only 7 per cent saying they never worry about it.
Rajan Lakhani, personal finance expert and head of money at Plum, says: “Lots of people don’t feel financially secure and Scottish savers are clearly conscious of the need to build up their nest eggs, ready for a rainy day.
“This research shows that many feel years away from reaching their ‘safety net’ threshold and that savings levels vary dramatically across nations and regions.
“But hitting these goals could be closer than you think. With the majority of people not regularly putting money into their savings, the first step is to build stronger financial habits.”
Four simple hacks to boost your rainy-day finances, by Rajan Lakhani
1 Remove “tap and go” temptations
Creating small barriers can encourage you to instil good purchasing habits and help you avoid trigger-happy spending.
2 Set bite-sized savings goals
Rather than aiming to set aside a grand annual savings sum, establish a monthly savings goal based on what’s actually realistic for you – whether that’s £50 or £200. Having a tangible target to aim for and celebrate each month will also help you stay nicely motivated for your goal.
3 Make saving automatic
Making saving as simple and frictionless as possible is important when you’re trying to change your money mindset.
4 Understand your spending triggers
If your “treat” spending habits are hampering your savings goals, it’s well worth digging into what’s triggering those purchases… Whatever they may be, identifying these spending triggers can help you to avoid pulling them.
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