Young people are leading the way as UK adults increasingly look to save more and spend less day-to-day, according to new research from online banking service Marcus by Goldman Sachs.
Marcus by Goldman Sachs finds that 46 per cent of those under 35 in the UK plan to save more in 2025 than they did the previous year – more than double (18 per cent) of those aged 55 and over.
Through its annual research, which is now in its seventh year and surveys 2,000 UK adults, it reveals that, overall, 34 per cent of people plan on saving more in 2025, and 31 per cent intend on spending less.
As many UK adults focus on saving, the research suggests that people are being more discerning and intentional with their spending priorities. Discretionary spending such as on alcohol and nights out have seen the biggest budget cuts, with spending on alcohol dropping by 20 per cent on average, from £348 in 2023, to £279 in 2024.
However, people do not appear willing to reduce spending on purchases in certain categories. In fact, spending on holidays has increased by six per cent since 2022, rising from £864 to £917, while attending sporting events has increased 25 per cent since 2022, rising from £247 to £309.
The research also suggests that spending regrets are common. Just over a third (34 per cent) of Brits regret a purchase decision made last year, increasing to 58 per cent of those aged 18 to 34. The biggest regret purchases in 2024 include clothes (£283), items for their home they didn’t need (£147) and takeaways or delivery food (£205).
Rob Basinger, head of product and marketing at Marcus by Goldman Sachs, commented: “It’s positive to see that UK consumers are re-assessing how they can manage their money better in 2025. Our research shows that there’s been a shift in spending habits, with people planning to save more this year.
Financial worries on the up
For many, financial worry is a concern, with 43 per cent stating that they worry about money a lot. This is most felt among young people, with 51 per cent expressing financial worries. Over a third (33 per cent) of people feel they are financially worse off than they were at the same time last year, while a fifth (20 per cent) believe they are better off.
In a bid to improve their financial situation in 2025, many consumers plan to focus on reducing spending in certain areas. In line with their spending regrets,10.7 million Brits (20 per cent) plan to eat fewer takeaways, while other changes include eating out less (22 per cent), buying fewer clothes (21 per cent) and buying less coffee (10 per cent).
The latest UK government Budget has also been a catalyst for many people to adjust their priorities to save for 2025; 36 per cent have changed their saving habits in response. The data indicates that 13 per cent have prioritised savings in Cash ISAs, 12 per cent in easy access accounts, and 10 per cent in fixed rate savers.
Basinger continued: “With various savings accounts available, such as cash ISAs and easy access accounts, it’s essential consumers choose the account that best fits their needs and to consider factors like any fees, charges, and withdrawal restrictions before deciding.”
