Despite reports of a “savings boom”, new research by data analytics firm Kantar has revealed that British women saved an estimated £50bn less than men during the COVID-19 pandemic, with lack of confidence being cited as the main obstacle to women putting money away for the future.
What did the research find?
Britons saved an average of £154bn in the year to March 2021, as national and regional lockdowns cut commuting and spending costs, but Kantar’s data indicates that women saved significantly less than men during this period.
Women saved £2,628 on average in the year to March 2021, while men put away more than double that at an average of £5,335. Women were also less likely to utilise their savings by investing, with only 26% describing themselves as investors, compared to 37% of men.
Kantar attributed the figures to women’s lack of confidence, with a third of women saying they don’t invest because they think they don’t know enough about it. This increases to almost half (44%) of millennial women.
The findings come after a recent report by the Institute for Fiscal Studies found that women were 1.5 times more likely than men to have quit or lost their job during lockdown. With less money put aside, women left without a regular income could find themselves struggling to make ends meet.
The basics of saving money are the same for everyone, so we’ve rounded up 5 ways anyone can build up their savings pot to make sure they have enough for a rainy day or a future financial goal.
5 tips to help you save money
Budget
If you struggle to keep track of where your money is, or you want to work out exactly where your money is going, it might be worth downloading a budgeting app for your mobile. There are plenty to choose from, and many offer a round-up function, which enable you to automatically round up all your transactions to the nearest pound and transfer the difference into a savings pot for on-the-go, easy saving. See our best budgeting apps guide to help you decide which one is best for you.
Remortgage
Remortgaging to get a better rate could free up hundreds of pounds each month that you could put into savings, especially if you are on your lender's standard variable rate. The current mortgage market is extremely competitive, with interest rates as low as 1% and even less. If you are thinking of remortgaging, check out our Mortgage Best Buy Table in partnership with Habito*. Bear in mind though that there may be fees or an early repayment charge payable, so check the terms and conditions first.
Switch energy supplier
Switching energy supplier - especially if you are on a default variable tariff - can seem like a chore, but there are a number of dual-fuel offers on the market right now with very competitive rates that could save you hundreds of pounds per year. We review the best auto-switching services in the UK for those looking to switch, and we’ve got a round-up of the cheapest energy deals to help you decide which tariff is best for you.
Switch savings account
With speculation mounting that an interest rate hike is on the horizon, savings rates have begun to rise across the board, so now could be a great time to consider switching your funds into one of the higher-rate accounts to help your money go farther. We’ve rounded up the best rates on the market from banks and building societies so you can pick the best account for you.
Damien’s Money MOT
Damien's Money MOT is a free financial health check tool. In just 2 minutes, Damien can help you understand your finances, improve your financial wellbeing, identify any gaps that exist, and provide a remedy to fix any financial shortcomings. Take Damien's Money MOT today and be on your way to a better financial future.
