Hand icon with piggy bank to show importance of saving

 

 

 

 

 

 

The importance of saving

 

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When you save a bit, big things follow

At Foresters Financial we are committed to helping you save towards the future. We have put together why saving is important to prepare for some of the costs of key milestones in yours and your family’s future.

With the recent impacts on the economy, there is never a better time to think about more ways to focus on your savings.

We provide financial solutions with a difference to help with yours and your family’s future.

Savings habits in the UK

 

Average savings by age

Graph of savings in the UK by age

 

 

 

Individuals in the UK have an average savings pot of £9,633. With 18-24s having the lowest savings of £2,481 and over 55s having the most savings at £20,028.

 

Although not everyone has this much, experts recommend having three months’ worth of salary as a safety savings pot.

 

Graphic explaining 12.8 million UK households have little or no savings

What do you want to save for?

Saving for a car?

Is your child eager for the freedom of driving their own set of wheels to explore different places and visit friends and family? Are you eager for a new family estate car? A car in the UK costs on average £18,139 and there are over five million leased cars on the road, with millions choosing this option to help with financing to get out on the road.

 

 

 

 

The average price of a first car is currently £3,410. This price has gone up by £864 since 2016, that’s a 34% increase!

 

Car icon, how much could buying a car cost

 

 

 

Learning to drive could cost up to £1,551. Costs include getting a provisional licence, lessons, theory and practical tests.

 

Saving for University?

Attending university is an exciting milestone. From teachers to engineers, vets to doctors, there are many courses to kickstart careers! Whatever your chosen university course, it can come at a hefty price tag.

 

 

If you or your child is wanting to study for a three-year course for the 2020/21 academic year, you could be looking at being left with £45,465 in university debt (living outside of London) or £53,727 (living in London). This figure includes the tuition fee and maintenance loan for living costs, such as food and accommodation.

Compared to the 2016/17 academic year, students were looking at debts of £42,768 (living outside of London) or £50,115 (living in London). This increase was due to the maintenance loan and the slight increase to tuition fees from £9,000 to £9,250 introduced in 2017/18.

 

 

In 2018/19 over 393,000 individuals started an apprenticeship and although there are no tuition costs, a salary below minimum wage whilst learning on the job means that the cost of living and paying for books to support academic development can have a strain on purse strings dependent on an individual’s circumstance – any savings will help support further education.

Saving for your first home?

 

Average house prices in the UK

UK house prices graph from 2017 to 2020

The average age of a first time buyer is 34. In 2007 is was 28.

 

 

Purchasing a first home is one of the greatest costs anyone will come across. For a young adult the thoughts of getting on the property ladder can be daunting, so it is one those milestones that can become more achievable the earlier it is saved for.

 

The average cost of a first house in the UK is £220,000. With an average deposit of 22% this means you would need to save £48,400 for the deposit alone, excluding all house buying fees.

 

Recently banks have begun offering 5% mortgages and reduced stamp duty up to March 2021, meaning getting onto the property ladder today could be a little bit easier – as long as you already have the savings available.

 

Looking at the overall average of a home in the UK has risen by 5% from 2017 at £226,185 to £237,834 in 2020.

Saving for your big day?

 

 

Have you thought about planning yours or your child’s special wedding, one of the happiest days in our lives? Do you imagine big bouquets or a fairy tale wedding with a horse and carriage?

UK weddings in 2019 cost on average £31,974, which has seen an increase of £4,813 from 2017! Much of this increase for wedding planners was due to the venue, costing £1,052 more than in 2017. Food alone can add an additional £3,887 to the bill and a dazzling honeymoon can be around £4,645. This has seen a jump of £534 and £1,015 respectively. And it doesn’t stop there, as there are further costs for flowers, photographer and entertainment, such as your usual band, DJ to having something a little different at a wedding such as a magician.

Although many weddings have been put on hold in recent times, having an idea of some of the costs involved can help you plan for a happy future with you and your partner, or for your child’s future when they are ready.

 

Top 5 wedding spends

Top 5 wedding costs in the UK 

 

Saving to start your family?

The introduction of children into your family is a remarkable experience and changes your life forever. From seeing them take their first steps to sending them off to primary and secondary school, there are costs to give them the best possible life and making them a huge part of your family.

 

The average cost of raising a child from birth to age 18 could be as high as

£695.24 a month

 

This expense equates to

£22.92 a day

 

So whether having a family is in the near or far future, having a savings pot behind you can help make raising a family a little easier.

Saving for rainy days and fast cars?

It’s not all about retirement money as you will also need easily accessible funds for backup. Many experts recommend having at least three months’ worth of salary saved and some suggest it should be as much as six months’ worth. Don’t worry, you don’t have to save it up all at once. You can work up to it slowly but surely.

 

 

 

 

With a rainy day fund in place, you may want to have a separate savings pot for rewarding yourself. Perhaps you may fancy purchasing a new set of wheels.

 

Umbrella up for a rainy day

 

 

 

Do you want a Mercedes S class? Or a Land Rover Discovery? With an additional savings pot in your name, these dreams may be possible.

 

Saving for a bigger (or better) home?

 

House illustration showing the cost of renovating a home

 

 

 

UK individuals have different average savings amounts, depending on age. With 18-24s having the lowest savings of £2,481 and over 55s having the most savings at £20,028.

 

Although not everyone has this much, experts recommend having three months’ worth of salary as a safety savings pot.

 

UK individuals have different average savings amounts, depending on age. With 18-24s having the lowest savings of £2,481 and over 55s having the most savings at £20,028.

 

Although not everyone has this much, experts recommend having three months’ worth of salary as a safety savings pot.

 

Saving for retirement?

 

 

For some of us retirement may seem like a long way off, but by working we’re all contributing little by little towards a milestone we reach in our adult life! So, if you can’t wait to jet off on holiday or explore different sights and cultures you’ve not had the chance to do before, you can start planning (and saving!) early.

 

It’s been widely argued that to have a good retirement when the time comes, you should aim to save about 12.5% of your monthly salary. The average person in the UK will spend 3,507 days working in their lifetime, so reaching your retirement age can feel like a well-earned achievement.

 

If you haven’t retired already, your pension age will be calculated using your date of birth. Everyone born on or after 6 April 1951 (male) or 6 April 1953 (female) are eligible to receive the New State Pension. This is currently £175.20 per week, assuming you have 35 qualifying years.

 

Bubble imaging retirement as lying on a deck chair at the beach 

 

Make the most of your savings

If your child’s Plan is with us you, friends or family can make a contribution to their savings account, so they can be closer towards achieving some of life’s biggest milestones. As the parent or legal guardian, you can manage your child’s Plan online with MyPlans, and family and friends contributing to their Plan can also have their own gifters MyPlans account. So if you want to make their savings go further, top up to their Plan today.

Top up a child's Plan

If you already have a Plan with Foresters, why not top up to your savings by logging into your MyPlans account, which you have access to online 24/7. MyPlans lets you view your Plan value, fund information and make payments into the account in just a few clicks online 24/7. If you haven’t already created your account, activate now >

Login to MyPlans

Alternatively, you can request to speak to one of our Financial Advisers through face-to-face or video appointments for discussing your current and future financial needs. Request an appointment >

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ISA

Our ISA gives you the chance to save into a Stocks and Shares ISA and Lifetime ISA under one Plan.

Find out more about our ISA

 

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Junior ISA

Save for your child’s future with our Junior ISA, from as little as £10. We look after over 1.5 million children’s savings accounts.

Explore our Junior ISA

 

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Child Trust Fund

We’re one of the largest CTF providers in the UK. A CTF can be transferred to start saving with us.

Transfer a CTF

 

As with all stock market investments the value of the Plan can fall as well as rise, and you may get back less than has been paid in.

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