Savings go north whilst spending stays south

Results from the latest Legal & General Money Mood Survey show a growing regional divide in the spending and savings habits between the North and the South of Great Britain.

The results show that when questioned, 31 per cent of Londoners were in the mood to spend compared with only 21 per cent of people from the North. However, when asked about saving, 70 per cent of Northerners were in the mood to save compared to just 57 per cent of Londoners.

Julia Clayworth, Legal & General’s Wealth Management Head of Marketing, said: “Whilst the overall spending and savings patterns haven’t changed dramatically this month, what we have noticed is a growing regional difference in spending and savings habits.”

When asked about their abiltiy to meet monthly bills at present, worryingly nearly one in five people from the North claimed to be spending more on paying bills and debts then they earned. This compares to six per cent in the South West and fifteen per cent in London. When it comes to going out and entertainment only a quarter of Londoners said they spent nothing this month a dramatic difference from 45 per cent of Northerners.

Julia comments: “In times of financial uncertainty it is more important than ever for people to keep a close eye on their spending and budgets. Although it is worrying to see nearly 20 per cent of people in the north region can’t pay their monthly bills at the moment, it is reassuring that people are acting in a responsible manner by spending less on going out and entertainment. When money is tight it is all too easy for a larger than expected utility bill to push you into financial difficulty. This is when a savings plan really comes into action. Just putting aside a small amount each month can make the difference between coping or struggling through difficult financial times. If people do find themselves in financial difficulty we could always urge them to seek independent financial advice.”