In a rapidly evolving financial climate, our Bauer Insiders panel has taken a deep dive into a variety of factors that are shaping the way people approach their personal finances today and in the future. From analysing current patterns in spending and saving habits to exploring emerging trends across different age demographics, our panel has examined how individuals are navigating economic shifts, adapting to inflation, and responding to fluctuating market conditions.

 

Key areas of concern

 

Rising prices (79%) and inflation (66%) are the biggest financial concerns, with the relatively new Government also causing considerable concern amongst 43% of consumers.

These reasons may be key factors in how different age groups plan to spend this year, with over half of 35–54-year-olds claiming that they will be putting off larger purchases, with 42% saying they will need to tighten their belts financially.
34% of 18–34-year-olds expect to be better off financially than previous years, but over half will be buying fewer luxury items this next year.

Looking to the 55+ age bracket, 65% expect their finances to be adversely affected by the general election – more than any other age bracket.

 

Spending trends

 

Over the past year, consumer spending trends have shown a continued interest in retail spending as well as a focus on personal savings. 69% of consumers have spent money on new clothes in the last year, and nearly half (48%) plan to buy new clothes in the next 12 months. This highlights the importance of fashion in consumer habits, despite broader financial concerns.
Other key areas of expenditure include holidays (51%), and concert, theatre, or sporting events (50%). However, many consumers are also being mindful of their personal finances, as 57% have managed to add money to their savings as well.

Looking ahead, the year to come shows that 1 in 10 plan on buying a major domestic appliance. Yet, alongside this, 50% have expressed intention to add to their savings.

 

Saving habits

 

When it comes to saving, many turn to digital and personal sources for financial advice, with both online resources/blogs and guidance from family and friends being the most common channels for consumers seeking to manage their finances.

Consumers also stated they would feel most confident managing their finances if they had money-saving expert Martin Lewis on speed dial (26%) or by paying off their debts (23%).

This desire for expert advice is further reflected in preferences for financial products as consumers are increasingly looking for dependable options, with the appeal of low-risk services like savings accounts (65%) & ISAs (47%) leading as preferred choices.
Interestingly however, 48% claim to not use any products or services to manage their finances.

 

Money management

 

Despite a strong interest in saving, consumers are finding it increasingly difficult to stay on top and manage their finances. Although nearly 2 out of 3 say they understand the financial landscape, this is falling (-11% since 2021) and only half get any kind of help managing their finances, with the other half relying mostly on financial websites, financial advisors, or built-in services.

The end of the month is the most popular time to do financial admin, with lack of money and time showing as the biggest barriers to staying on top of finances.

Despite this, 76% say that they feel confident managing finances and 15% agree that creating a monthly budget makes them more confident in managing their finances.

 

Bank switching motivations

 

When it comes to managing their bank relationships, 1 in 4 have switched banks – noting better deals as the key decision driver.
Cashback is often the biggest motivator for switching banks, with 34% citing this as a their reason for switching.
Further to this, 74% of consumers have trust in their digital banking platforms.

Future spending shifts

 

Looking to the future consumer priorities are shifting as insurance spending is expected to rise, with 26% saying that they plan to spend more on insurance in the next year. This shows a 15% increase from 2021, as well as automotive costs rising 5% from 2021 costs to 14% in the coming year.