Men have hundreds more saved in ‘rainy day’ funds than women, research indicates
IE Hub also found a fifth of people surveyed said they have no savings to call upon in an emergency.
Men who have a savings pot for emergencies have around £1,300 more than women squirrelled away on average in “rainy day” funds, a survey indicates.
Men with emergency savings funds have £8,771 put away on average, according to the research for online budgeting tool IE Hub.
Female savers with rainy day funds have around £7,463 typically put by for emergencies, the research found.
- Men, £8,771
- Women, £7,463
However, a fifth (20%) of people surveyed said they have no money put away to call upon in an emergency.
Nearly one in 10 (9%) people do not know exactly how much money they have going into their bank account each month, and the same proportion (9%) have never tried budgeting.
One in six (15%) people do not feel confident about how much money they have left after paying essential bills each month.
But a diligent quarter (26%) of people said they check their bank balance on a daily basis.
The research also indicated an appetite for budgeting among younger generations, with 13% of 18 to 24-year-olds and 10% of 25 to 34-year-olds saying they have recently started budgeting, compared with 6% across age groups.
Some 2,000 people were surveyed across the UK by OnePoll in May.
Chief commercial officer at IE Hub Gareth Llewelyn said: “The latest survey findings highlight a growing financial vulnerability among UK households.
“With one in five people not having a rainy day fund and 9% unsure about their monthly income, it’s clear many are navigating their finances without the tools or confidence they need.”
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
ADVERTISEMENT
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
ADVERTISEMENT
He said the size of the typical rainy day fund “is encouraging for those who have one, but financial resilience should be accessible to everyone”.
Here are some suggestions from Mr Llewelyn for managing finances effectively:
1. Track your income and expenses
Start by understanding what is coming in and going out each month. Identify any unnecessary spending and look for opportunities to cut back.
2. Set a savings goal
Even a small, regular amount can add up. Consider putting aside a realistic percentage of your income into a separate savings account each month.
3. Automate savings
You could try setting up a direct debit or standing order to transfer money into your rainy day fund as soon as you get paid – and treating it like any other essential bill.
4. Use free online budgeting tools
Tools can give you a clear picture of your finances, help manage spending, and build confidence around budgeting and saving.
5. Review and adjust regularly
Life changes, and so do your finances. Reviewing your budget frequently can help you to stay on track and make informed decisions when circumstances shift.