The latest Lloyds Bank Quarterly Savings Report shows the overlap between savvy saving and personal wellbeing, with regular savers feeling happier and less anxious than their non-saving counterparts.
Almost half of people (46%) say that money matters are their biggest cause of stress. Younger age groups particularly feel this way, with 58% of 25 to 34 years olds stating this. Almost three in five (59%) 35 to 44 year olds also claim to be anxious and worried about their personal finances.
Despite this, it is clear that saving regularly can have a positive impact on finances and people’s happiness. Almost three quarters (74%) of regular savers felt happy over the month prior to being asked, as opposed to just over a third (36%) of non-savers.
Over three quarters (76%) of regular savers say that getting into the savings habit made them feel less anxious over their personal finances, and for the youngest age group, the impact is even more stark. Over four-fifths (86%) of 18-24 year-old regular savers claim that saving regularly makes them feel less anxious and insecure about their personal finances. For those that don’t save, two-thirds (68%) say that they would feel less worried if they did save regularly.
The research suggests that just putting a plan in place for your finances can also help. Over half (53%) of savers agree that having a savings plan has had a positive impact on their mental health, and again for those aged 25 to 34, this rises to 64%.
Mark Rawcliffe, Head of Savings, Lloyds Bank said: “Getting into the savings habit can not only help your finances, but it can also ease financial worries and reduce stress for many. Having savings provides peace of mind that there is a financial buffer for any unexpected costs arising or reassurance of the ability to pay for something if you are saving up for a longer term goal. Putting a small amount away each month in a regular savings account is often a good first step on the path to building your savings pot.”