Brits spending and saving habits

Following the unveiling of last week's biggest ever UK lottery winners, new research from The Co-operative Bank Current Accounts reveals the nation's current attitudes to money.

The findings show the average person in Britain has £3,492 in savings, but actually dreams of having an amount that is 188 times higher at £656,723.

However the research shows that this varies throughout the country, with people in East Anglia wishing for £868,000, whereas people from the North East would be content with just £389.000.

In a typical month, the average person saves £219, spends £195 on non-essential items, has £345 of disposable cash and overspends by £150.

Overall the research does show that we are becoming more financially aware, with three quarters of people (72%) now spending within their means, three fifths of people (67%) setting themselves a budget and almost nine tenths (86%) of people checking their bank statements regularly.

John Hughes, Director of Retail Banking for The Co-operative Bank comments: "It is encouraging to see that people are taking a close interest in their finances and by monitoring spending and saving regularly, people can ensure they have the money set aside to pay for any unexpected events."  

The research highlights that Londoners are the worst at sticking to their budget, overspending by an average of £195 a month, followed by people from Scotland, who overspend by £164 and Wales at £154.  However the findings also show that Londoners are also the most likely to save, putting aside an average of £296 a month, followed by those from the East Midlands, saving £241 and East Anglia who save £232.

When looking at the reasons for this, the findings uncover the events most likely to trigger overspending, which include Christmas (51%), a partner's birthday (35%) and a holiday (34%). However over one in five people still overspend on more everyday events, such as the weekly supermarket shop (19%), food (17%) and clothes (19%).

John Hughes continues "It is also important that people look to regularly review their financial situation and ensure that they have the right bank account for their needs."