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Daily Record
a day ago
- Business
- Daily Record
Five tips to help people on any income get into the habit of saving this summer
Simple steps from Tesco Bank on boosting your savings pots by over £1,000 in just six months. Income tax rises for Scots in April - how the changes affect you New research from Tesco Bank suggests that over a third (35%) of Brits have increased their savings in the last six months, by an average of £1,076. Despite continued cost of living pressures, many people have stuck to their savings goals and priorities in the last six months with almost half (47%) contributing monthly to their savings pots, while 20 per cent of savers top up when they can. Tesco Bank found that 39 per cent of savers see their goals as long-term, such as working towards retirement (43%) or long-term financial stability (41%), while 17 per cent are saving towards shorter term goals like holidays (36%) or building an emergency savings pot (36%). Delving into which age groups are leading the savings charge over this period, millennials and baby boomers have both stashed away an average of £1,127 in the last six months, while Gen Z aren't far behind with an average of £1,118 in their savings pots. Meanwhile, Gen X have saved on average £1,006. Only 17 per cent of people said their savings had dropped in the last month but, more worryingly, the research showed that 12 per cent of people don't, or can't, contribute to their savings at all. Some 32 per cent of savers said they didn't have a savings goal they are working towards. Commenting on the findings, Chris Henderson, Save and Pay Director at Tesco Bank, said: 'Getting into the savings habit isn't always easy, especially when life feels a bit more expensive, but it's great that so many people are setting goals, sticking with them and seeing their savings grow. 'Little and often is usually the best approach to saving, with some flexibility for those months where your spending rises, like the summer holidays. 'We know, however, it isn't always as simple as that and we see from our research that a considerable number of people around the UK aren't saving anything at all. This is maybe because they can't, or they simply aren't in the saving mindset. 'If you have some spare cash, setting savings goals is important as it can motivate you, and remember you can start really small and steadily grow your money over time.' Tesco Bank's five tips to start saving this summer To help you get into the habit of saving, Tesco Bank have shared five of their top tips to help everyone - no matter their income - start building better savings habits. It might help change your mindset and boost your bank balance by over £1,000 before Christmas. Give yourself a goal To help you stay on track it's good to have a goal in mind. Giving yourself something to work towards is a great way to stay motivated. Create saving pots, at home or in your banking app, so you can see the money grow as you work towards your goals. Budget, budget, budget Budgeting is your friend. If you don't have one in place already, it's worth getting a budget tracker set up as it can be a useful tool to track your spending. Your spending may vary from week to week, so having a monthly overview can help you assess where your money is going and whether you need to make any changes to cut costs. Ringfence money for your savings Setting up a monthly transfer into your savings account will help earmark money for savings, so you don't spend it elsewhere. A good time to do this is right after you've been paid, so you could set up a standing order to go out on, or just after pay day. Small wins can boost your savings Additional savings can also come from money you budgeted for but didn't end up spending. Perhaps your weekly shop cost less than you had budgeted for, or you decided to eat at home rather than go out. If you can take some of that money and divert it into your savings, even if it's just a few extra pounds, you'll be able to build up your savings pot and reach your goals quicker. Set yourself a savings challenge There are lots of different savings challenges out there, whether it's saving a certain amount every day or increasing the amount you save each day or each week. Each is designed to get you in the habit of putting money away and seeing it grow over time, so have a look and see which one could work for you and start saving today.
The Independent
08-06-2025
- Business
- The Independent
Finance experts suggest ways to teach children good money habits over the summer
The summer holidays can be a 'perfect time' for parents to teach children about budgeting and spending, finance experts have said. Introducing children and young people to good money habits from a young age can help to build financial confidence and set them up for life, they added. They made the suggestions ahead of My Money Week (June 9-13), a campaign and activity week which aims to encourage children and young people to learn about money matters. Chris Henderson, save and pay director at Tesco Bank, said: 'It's so important to teach children about money, and how to manage it, from a young age. 'The skills and knowledge that are gained, which we carry with us into adulthood, can really impact how we live our lives and our financial wellbeing.' He suggested making everyday spending a 'fun challenge,' adding that the summer holidays 'can be the perfect time to talk about budgeting and spending'. Mr Henderson added: 'It might be a quick trip to the shops to pick up dinner or something bigger, like a day out. Let your children take charge of the budget and see how they would spend the money – you could even set them a challenge, like planning a day out.' With many transactions taking place digitally rather than with physical cash, Mr Henderson also suggested showing young people 'what it looks like when you get paid, the money landing in your bank account, and then the things that you have to pay for – like water, electricity or housing costs. 'For older children, you can start introducing them to things like national insurance and your pension.' He also suggested introducing the idea of savings with a 'wishlist' of items children want, inviting them to consider how much money they would need to save and how they might reach their savings goals faster. Mr Henderson added: 'Not only will this help them save, they'll also value their purchases more and only spend on items they really need, rather than the first thing that catches their attention.' Brian Byrnes, head of personal finance at financial app Moneybox, suggested that some parents could consider opening a junior Isa. He said: 'By the time your child turns 18, a junior Isa is automatically transferred into an adult Isa, allowing them to decide on how they wish to spend, or invest their hard-earned savings.' Mr Byrnes added that if parents are concerned about how their children will spend the Isa money once they reach adulthood: 'You could put a small amount into a junior Isa and the rest of your savings into a different account earmarked for your children's future.' As with adult Isas, junior Isas have tax advantages and the money held in them is ringfenced from the taxman for as long as it remains in its Isa 'wrapper'. Mr Byrnes also suggested talking openly about money with children, adding: 'Talking about any money you have put aside for your children with them is a fantastic way to include them in your plans and educate them on savings and investing.' Susan Hope, a retirement expert at Scottish Widows, highlighted recent research it had commissioned which indicated that more than two-fifths (44%) of adults doubt they will ever achieve financial independence, 'with confidence in making everyday financial decisions a driver of this'. She suggested that going through payslips with young people could help them to understand concepts such as tax and national insurance (NI). Ms Hope added: 'Let your children see how you budget, compare prices, or plan for your weekly spending. Involving them in decisions, like choosing between two activities based on cost, teaches practical skills they'll use for life and should instil money confidence.' As children get older, she suggested talking to them about 'important topics like saving into a pension and what this means. A pension is something they will likely encounter for the first time when they start full-time work and we know that engaging early gives people the best opportunity to build a healthy pot for later on in life.'
