More than a quarter of Brits want to be comfortable in paying bills

Financial Future Goals: Brit’s prioritise being able to do a weekly food shop in 2022

• Credit management company, Lowell, has taken a deep dive into Brits’ financial goals, before revealing how they have altered over the past three years
• Over one in five Brits admit that being able to do a weekly food shop is at the forefront of their financial goals
• One in six Brits want to be able to comfortably pay their bills in 2022

With 2022 seeing the cost-of-living increasing drastically across the UK – and therefore putting pressure on Brits to change their spending habits – how have people’s financial goals changed since before the pandemic in 2019?

Credit management company Lowell has taken a deep dive into Brits’ financial goals following the impact of both the pandemic and the recent cost-of-living crisis. The research goes onto reveal the biggest financial goals across the country before highlighting what Brits are prioritising this year, compared to 2019.

Brits Financial Future Goals in 2019 compared to 2022

Financial Future Goals	2019	2022	% Change
Being able to do a weekly food shop	10.70%	12.90%	21%
Comfortably paying bills	22.30%	25.70%	15%
Moving abroad	4.30%	4.90%	14%
Having a secure savings pot	17.70%	20.10%	14%
To achieve financial stability	24.70%	27.20%	10%
Pay debts off	22.00%	23.90%	9%
Be secure in supporting family	11.20%	11.60%	4%

Since the cost-of-living crisis, Brits’ spending habits have seen a dramatic change – but what are Brits wanting to spend money on, and what are the things that people want to save for the most?

Achieving financial stability was the leading financial goal in 2022, seeing a 10% increase since 2019.

UK inflation is rising at the fastest rate in 40 years [1], seeing food costs increasing and the cost of living putting a toll on Brits banks. Lowell found that over one in five Brits want to be able to comfortably do a weekly food shop, a 21% increase since 2019.

According to energy regulator Ofgem [2], the typical household could expect to see an £800 increase in energy use per year. Lowell’s data revealed a quarter of Brits (26%) said that comfortably paying their bills was one of their main financial goals in 2022, witnessing a 15% increase since 2019.

Young people’s spending habits have changed since 2019

	Age
	16-24	25-34	35-44	45-54
	%	%	%	%
Pay debts off – 2019	12%	28%	30%	29%
Pay debts off – 2022	21%	32%	29%	34%
% Change since 2019	69%	15%	-6%	19%

The number of young people wanting to pay off debt has seen an increase since 2019; indicating that more young people have debt since Covid-19 and the cost-of-living crisis.  Paying off debt among 16-24-year-olds has witnessed a massive 69% increase in priorities across the UK. The only age group to see a decrease, are among 35–44-year-olds who saw a decrease of -6% in priority since 2019.

Two-thirds of Brits get into debt due to their wedding day

In 2022, there are predicted to be 350,000 couples planning to get hitched, and whilst weddings are an occasion to be celebrated, they can come with a hefty price tag.

A recent study by Lowell revealed that nearly half of Brits (47%) are getting into debt by paying for their wedding using credit cards, overdrafts, and loans. So, it’s no surprise that in 2022, there has been a decrease of 25% in Brits prioritising weddings this year.  In fact, there has been a change in focus across all age groups when it comes to weddings, with 32% less 16-24 and 25-34 putting weddings at the forefront of their finances.

	Age
	16-24	25-34	35-44
	%	%	%
To get married – 2019	15%	17%	8%
To get married – 2022	10%	11%	6%
% Change since 2019	-32%	-32%	-23%

Preparing for the future

Considering how the landscape has changed in 2022 and the challenges that Brits are facing, John Pears, UK CEO of Lowell, comments:

“At Lowell, we understand that the financial outlook for 2022 and beyond feels bleak for many. We’re all facing tougher times ahead, but this is particularly true for some of our most vulnerable households across the UK.

It’s important to try and be as prepared as possible, and realistic about your financial goals over the next year or two. Building a rainy-day fund, or improving your credit score, for example, might not feel financially realistic at this point in time, and that’s okay.

“If you’re in debt, and you’re worrying about how to pay for your everyday essentials as well as your debts, the best way to manage this (whether there’s a cost-of-living crisis or not) is to engage with your creditors and talk through your options.

Creditors like Lowell can work with you to put a longer-term plan in place for paying off your debts, where you’ll never have to pay more than you can afford.

 “It’s also important to know that there are many credible and trustworthy sources to support anybody struggling financially and a helpful list is available at Lowell’s website https://www.lowell.co.uk/help-and-support/independent-support/.”