Shift In Consumer Spending Habits
New research shows that people would sooner spend money on others to lift their spirits than on self-indulgent treats. Consumer spending is heading for an all time low, shoppers are abandoning the high street and family finances are harder pressed than ever.
But does this crunch time encourage us to focus on priorities and teach us to be better with our money for the future?
The research, commissioned by Unum - the Income Protection specialist - reveals that most of us (58%) are spending less on little luxuries than we did last year. But when we do splash out, we’re choosing to spend our hard-earned cash on shared experiences and treats for our friends and family rather than on self-indulgent, throw away treats for ourselves.
Family is at the heart of Britain’s priorities, with over half of us (51%) unable to live without spending money on our loved ones and almost two-thirds (64%) directly linking treating friends and family to household happiness levels.
Interestingly, some financial commitments previously seen as a luxury are becoming a standard part of our monthly outgoings, along with rent/mortgage and utility bills. Almost half of us (48%) say we could not live without our home internet subscription.
In stark contrast, just 35% of us couldn’t live without a car, indicating a shift in priorities with social value overtaking material worth.
In accordance with the latest ONS figures showing that clothing and footwear sales continued to fall in September, research showed that only 16% of us purchased new clothes, 12% spent money on make-up and 9% on hair and beauty treatments for ourselves.
In general, men are the bigger spenders - on average, they spend £51 on treats per month compared to women who spend £37. Notably, 64% of women have cut down their spending on treats, compared to 12 months ago.
Unum commissioned the research because, whilst it understands that protecting lifestyles is important to people, it also wanted to understand how much this was at risk.
Despite the importance we place on spending time and money on others for our happiness, nine out of ten people admitted they don’t have a back-up plan should they lose their income, meaning they’d no longer be able to treat their loved ones and maintain the standard of living that they have become accustomed to.
Joy Reymond of Unum UK, said: "The value of shared experiences with friends and family goes beyond just the price tag. Unlike the treats you buy for yourself, the research demonstrates how important treating our loved ones is for our happiness and wellbeing.
"However, we shouldn’t take the ability to do this for granted. Without an income, people would not be able to afford the little luxuries and treats for loved ones that mean so much to them.
"It’s essential that people make sure that they have a back-up plan in place to protect their current standard of living against all eventualities."
Professor Geoff Beattie of Manchester University commented: "As the cost of living continues to rise, and with everyone feeling the strain of the recession, we’re seeing a significant shift in priorities. The boom years were defined by excess and self-indulgence - throw away culture for the ‘because we’re worth it’ generation.
"But when times get tough, our instinct is not to focus on self-indulgence to make us happy, but on shared experiences with our friends and family.
"Being part of a strong family unit, spending time together and treating those important to us provides a sense of wellbeing that we’re craving in tough and uncertain times. We also significantly benefit from psychological security and reduced stress by having plans in place to enable us to continue to provide for, and to be able to afford, shared experiences with loved ones.
"As this contributes both to our own happiness and the happiness of those around us, it’s really important that we have a back-up plan to make sure we protect our income."
Whilst it appears that we’re becoming an increasingly altruistic nation, it’s the Welsh who are the most selfless - confirming their commitment to family and community values with 60% of them unable to live without treating loved ones.
But perhaps surprisingly, the South East - often seen as emblematic of throw away self-indulgence - is in fact almost as selfless (59%).