Yahoo Finance UK consumers increase spending on payday by 40% , survey finds
British consumers spend almost a fifth of their income on groceries, suggests the Spending and Saving Index by B, a digital banking service by CYBG. Thus, 19% of total monthly spending goes to groceries, followed by “getting around” (7%), eating out (6%), fuel (5%), style (5%) and home (5%).
The survey analyses data from 190,000 B accounts.
However, the study suggests that spending patterns change dramatically with age.
Groceries spending increases from 14% for 18- to 25-year-olds to 18% for 26- to 35-year-olds and peaks at 22% for the over 66-year-olds. At the same time spending on eating out decreases from 12% for 26- to 35-year-olds to only 3% for over 66-year-olds.
On average B customers have spent £26 per day within the analysed time frame from October 2017 to September 2018. In February they spent the least with only £697 while spending peaked in December at £833.
Compared to any other day British consumers increase their spending by 40% on the last day of the month, a payday for most working people.
In terms of saving habits, the report concludes that 6% of consumers transfer savings at the beginning of the month, in comparison to an average 3% on other days of the month. Friday is the most popular week day for saving with 25% of transfers occurring on that day.
Almost a third of B customers (32%) said they would save for holidays. This is followed by savings for cars (16%) and simply “saving” (15%).
Similar to groceries spending, savings rise with age: under 18-year-olds transfer an average £84 to a savings account. For 56- to 65-year-olds average deposits are at £364.
Surprisingly, December turns out as the month with the highest saving rate, despite the Christmas holidays. In January and February average savings reach an annual low.
