As the cost-of-living crisis intensifies in 2022, Brits are adapting their financial goals, reflecting significant shifts since 2019.
- Cost-of-living pressures have resulted in a 21% increase in Brits prioritising a weekly food shop in 2022.
- Comfortably paying bills has become a major financial goal, with a 15% rise in emphasis since 2019.
- The desire to pay off debts has surged notably among young people, particularly those aged 16-24.
- Weddings have become less of a financial priority, with significant decreases across all age groups.
In the face of the unprecedented cost-of-living increase in 2022, many in the UK are reshaping their financial priorities to cope with mounting economic challenges. A study by the credit management company, Lowell, delves into how these financial goals have evolved since 2019, revealing key changes in consumer behaviour. The ability to conduct a weekly food shop has emerged as a critical goal, experiencing a 21% increase in importance from 2019. This shift underscores the profound impact that rising food costs are having on household budgets.
Coupled with this, there has been a notable emphasis on the need to comfortably pay household bills, reflecting a 15% escalation since the pre-pandemic year of 2019. With the energy regulator Ofgem forecasting an £800 annual increase in household energy costs, the focus on bill payment is unsurprising. This financial strain is felt keenly across the UK, driving a substantial segment of the population to alter their financial goals accordingly.
The intention among younger demographics to repay debts has also shown considerable growth. Specifically, the 16-24 age group has seen a striking 69% rise in this priority, suggesting a significant increase in debt post-COVID-19 and during the ongoing cost-of-living crisis. These figures indicate that more young people find themselves in precarious financial situations, prompting urgent attention to debt settlement.
Conversely, the decision to prioritise weddings financially has diminished. Surveys indicate that nearly half of Brits go into debt to finance weddings, and in 2022, there is a notable shift with a 25% reduction in the prioritisation of weddings. This trend is consistent across various age groups, with a particular 32% decrease in the 16-34 demographic.
John Pears, the UK CEO of Lowell, articulated the broader context in which these changes are occurring, noting the bleak financial outlook and the necessity for realistic financial planning. He emphasised the importance of preparedness and transparency with creditors, outlining strategies to manage debt without exceeding affordability.
In summary, as the financial landscape of 2022 becomes more challenging, Brits are clearly redefining their priorities to navigate these trying times.
