Nationally, 88% of people are adjusting their money management to the cost of living crisis, a measure of amount of people that already feel affected by rising costs. The main coping strategies adopted in recent weeks related to making sweeping cut-backs on treats and non-essentials, whilst around two in five people had already decided to put off plans for major lifestyle purchases in the months ahead.
These are some initial findings from a new elephant research study which explores consumer reaction to the cost-of-living crisis. The new elephant study wanted to know how people were feeling — who was and wasn’t seriously affected by price rises, and how attitudes, priorities and behaviours have changed as a result. The study looks at retail, property, motoring, leisure, health, culture, travel and sustainability, the third sector and food.
One aspect of the report was to explore personal finance. The findings suggest that, at the start of the cost of living crisis, only 39% of adults said they had savings for a ‘rainy day’ and only 16% felt a meaningful sense of financial freedom in their day-to-day lives. In recent months, there has been a significant drive from younger people to prioritise getting into to savings habit and put away money each month (36%).
Of interest, the nationwide move to cut back, save and live within means was common across all income groups. The biggest variations in money management were by age group, with different generational attitudes to money management, saving and debt clearly shown.
The elephant team will be running sessions on the full study in August. If you would be interested in a session, do get in touch.