Treats go as Brits dig in for cost of living crisis

As the cost of living crisis worsens people are tightening their belts
July 22, 2022

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.