Cash savings fell by 24.5% over last year as consumers continue to struggle with high Cost of Living 

Cash savings fell by 24.5% over last year as consumers continue to struggle with high Cost of Living

• Data insights from Moneyhub reveal consumer cash savings fell by 24.5% in the 12 months to August
• Tracker showed that savings capacity also fell by 5.5% over the same period, while consumers’ non-discretionary spending needs rose by 2.6%

 
The latest proprietary insight from Moneyhub, the market-leading data and payments platform’s Financial Wellness Tracker, reveals that consumer cash savings fell by 24.5% in the 12 months to August 2024.

This coincides with an individual’s capacity to save without making any changes to their overall spending behavior, falling by 5.5% over the same period.

Indeed, consumers’ non-discretionary spending needs (e.g. mortgage/rent, utilities and groceries) rose by 2.6% over the last 12 months, likely prompting the drop in their discretionary spend of 1.6% over the year.

Moneyhub’s Financial Wellness tracker, released each month, tracks consumer spending and saving trends across five key indices; savings, savings capacity, spending on essentials, discretionary spending, and debt to income ratios. For the full tracker click here
 
Commenting on the monthly findings, Samantha Seaton, CEO, Moneyhub, said: “While inflation has dropped and costs are beginning to ease back to a semblance of normality, it’s clear that the cost of living crisis lingers on for a vast swathe of the population. The fact that an individual’s capacity to save without making significant lifestyle changes continues to dwindle is worrying. Especially with many fixed-rate mortgages still to rise by quite some over the next year.

“ Access to cash when it’s most needed provides consumers with a sense of financial security that supports their overall well-being. Businesses that are able to provide their customers a full view of their financial worlds; all incomings, outgoings, savings and investments, in a single place via platforms such as Moneyhub, will help individuals take stock and make more informed choices and build buy-in and loyalty.This consent-driven data will also enable businesses to offer more personalised products and services that ultimately better benefit their customers.”

The post Cash savings fell by 24.5% over last year as consumers continue to struggle with high Cost of Living  appeared first on USNewsRank.