Lockdown prompts three quarters of the nation to make new financial resolutions

Three quarters of Brits (77%) say lockdown has prompted them to make new financial resolutions for the next three to six months, rising to a 9 in 10 people aged under 35 (91%) according to AA Financial Services. The new study suggests months of home isolation and an uncertain economy has created a fundamental shift in people’s attitudes to money, spending and saving.

With the nation cautiously coming out of months of lockdown, the AA Financial Services poll of 2,000 adults reveals that a third of people (35%) plan to increase the amount of money they put away each month. A quarter (23%) vowed to hold back from dipping into savings for luxuries, whilst 16% said they would get rid of their credit cards and one in 10% would put more money into their pension. 

Those under-35 were twice as likely than the over-55s to say they would put more away in savings than they had done before lockdown (46% vs 22%). The under-35s were also those most likely to say they would cut back on luxuries (30%), put more into their pension (13%) and consolidate their debts into a single loan (10%). 

More broadly, the research found that seven in eight people (87%) said lockdown had prompted them to make significant changes to their lifestyle, from everyday money management to reassessing their carbon footprint.

A third of people (37%) said they intended to spend more time at home, while a quarter (23%) planned to cook more than they had done previously. Overall, 25% said they now had a greater appreciation of the environment and a stronger desire to protect the planet, while 18% of respondents intended to take more staycations.  

The study also found home isolation had helped many people appreciate the simple things in life. More than a third (37%) said lockdown had brought their family together, prompting plans to spend more time with their loved ones in the months ahead. Also, 30% of adults said they now had a greater appreciation of the simple pleasures in life; a quarter (25%) were planning to maintain a slower pace of life, and one in seven (14%) vowed to spend less time on social media. 

James Fairclough, Director of AA Financial Services told B365“The last couple of months have been very challenging and, for many, a period of anxiety and loss. But, as we emerge from lockdown, there are signs some positive habits from lockdown will remain. Many people have used the period at home to reflect on their lifestyles and make positive changes for the future.

“For some, the next few months will be a time for a money makeover. The two clear priorities relate to saving more money, to build up a rainy day fund for the future, and to consolidate debts. At AA Financial Services we have a strong track record for value and service with both loans and savings. For ideas on how to save, and the different options that are available, visit our website.” 

Financial resolutions people have made for the next 3-6 months

 Total18-3435-54 55+
To put a lot more money away in savings35%46%39%22%
To avoid dipping into the savings I have to avoid spending on luxuries23%30%21%20%
To get rid of my credit cards16%18%22%9%
To add to my pension10%13%13%6%
To invest in home improvements/ Increase value of my property10%14%11%6%
To clear my mortgage early9%12%11%4%
To consolidate my credit cards and debts into a personal loan with a simple monthly repayment7%10%10%3%
None of the above9%5%8%12%
I do not have any financial resolutions23%9%18%40%

The ways people intend to live their lives differently after lockdown restrictions have been lifted

 Total18-3435-54 55+ MaleFemale
I will spend more time at home37%38%40%32%34%39%
I will spend more time with family and loved ones37%32%37%41%31%43%
I will enjoy the simple pleasures in life more30%29%28%32%25%34%
Be more respectful of the environment and the need to protect the planet25%24%22%27%21%28%
I will have a slower pace of life25%23%24%27%20%29%
I will cook more23%28%25%18%18%28%
I will have a summer holiday in the UK more often18%13%17%22%19%16%
I will spend less time on social media14%20%13%11%11%17%
Give more to charity8%9%7%9%9%8%
I will work from home more8%8%11%4%8%7%
Not applicable – nothing will change for me13%7%14%18%17%10%