Research by HSBC has revealed that improved mental health is a key motivator for adopting better saving habits, with nearly one in three people in the UK (31%) saying they feel less stressed when saving regularly.
As the festive season winds down, many are using the ‘Twixmas’ period to reflect on finances, with nearly a quarter (23%) identifying as having a frugal mindset. Even among those who don’t consider themselves frugal, nearly nine in ten said they frequently practised at least one money-saving habit.
Common strategies include skipping takeaway drinks (40%), cancelling unused subscriptions (40%), limiting meals out (34%), and carefully planning lunches to reduce costs (35%).
Younger age groups are showing a strong interest in professional financial advice, with 47% of 18-24-year-olds and 53% of 25-34-year-olds considering using a qualified financial advisor to build better habits.
While many are focused on saving, certain behaviours continue to hinder progress, particularly among younger generations. A quarter of 18-24-year-olds admitted to “yo-yo spending,” alternating between overspending and strict budgeting.
Similarly, 29% of 25-34-year-olds and 20% of 18-24-year-olds reported being “saving dippers,” unable to resist spending their savings once they hit a certain amount.
A smaller but significant number of 18-24-year-olds (17%) acknowledged “doom spending,” where pessimism about the future discourages long-term saving—a figure twice the national average of 8%.
Despite challenges, nearly half (46%) of respondents are satisfied with their financial situation.
Common saving goals include building an emergency fund (52%), planning for unexpected expenses (51%), and achieving milestones like holidays or home renovations (39%). On average, Brits aim to save 23% of their income.
Pella Frost, HSBC UK’s head of everyday banking, encouraged savers to use the start of the new year to set financial goals.
“Planning your financial future can be easier if you start by mapping out your goals, whether that’s the holiday of a lifetime or boosting your rainy-day fund. Tools like our Savings Goals feature can help customers develop regular saving habits and improve financial resilience over the long term.”
