2020 was a tough year in all sorts of ways: many of us were separated from loved ones and struggled with homeschooling, our own mental health and perhaps our most intimate relationships.
The pandemic impacted us all in different ways, but the financial affects have been felt by many of us. With redundancies, pay cuts and lower earnings for small businesses, how and what we spend on our money on is more important than ever, as we try to make our budgets stretch as far as possible.
So what will Brits be spending their money on in 2021?
An Exploration of Worth, a new research report from online bank Marcus by Goldman Sachs, indicates that the nation’s financial priorities are changing, with some people surveyed saying they plan to spend less money on technology (21%), and more on improving their homes (33%).
The report uncovered what over 8,000 people surveyed in August and September 2020 said that they would spend more, less, or the same amount on in the next 12 months. Despite having to amuse ourselves at home in 2020, the research also found that only 3% of people were planning to increase their spending on on-demand entertainment services, with 16% planning to cut back.
According to the report, some of us plan to spend less on our physical appearance in the coming months, as 18% of respondents said they planned to set aside less for this, with only 11% saying that they planned to spend more.
Keeping our children happy could be a priority after a tough few months, as 33% of parents (with at least one child under 18) said they plan to spend more on their children, for example by treating them or taking them out for the day.
The research report also found that one in five (22%) respondents planned to spend more money on holidays and travel in the future, with a similar percentage (20%) planning to spend less. This roughly even split shows how we may be divided in our opinions about the possibility of future travel.
18-24 year olds were the most likely age group to be planning to spend more on holidays in future, with 32% of this group expecting higher travel-related outgoings, perhaps indicating that saving for a holiday might be a current savings goal for some.
40% of homeowners surveyed said they plan on spending more on home improvements in the coming months. Those who are working full time are the most likely of all working statuses to spend more on home improvements (37%), perhaps inspired by the desire to create a better working from home environment.
The research also found that 68% of those surveyed believe their home influences their overall sense of wellbeing, which perhaps could explain why 36% of people surveyed think that it is worthwhile borrowing money to undertake home improvements.
So, in short, this year, we’re cutting back on phone and tech upgrades, but souping up our living rooms. What are your spending plans this year?
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