Latest News | 25 August 2020
New attitudes outlined
A recent study by Bondholder Mortgage Advice Bureau (MAB) reveals how attitudes towards money have changed because of Coronavirus.
The coronavirus pandemic has caused much financial hardship and significant disruption to many people’s lives. MAB's study surveyed 2,000 people across the UK uncovering how we approach conversations about money, as well as the financial challenges faced in recent months.
The research reveals 30% of Brits say their attitude towards money has changed and almost half (49%) now have a different outlook on life due to COVID-19.
When asked specifically in what way their attitude has changed towards money, three quarters (74%) said money is more important to them now than pre COVID-19. Although an estimated 12.5 million people have been affected financially by the impact of coronavirus, it has taught some valuable lessons when it comes to people’s savings. Almost a third of all asked (29%) say they will now save for a rainy day and have an ‘emergency fund’, while a quarter (25%) intend to plan ahead more, as you never know what is around the corner.
However, despite the challenges faced, 30% say the outbreak has left a positive impact on their household’s finances. With less consumer spending following a time of socially distanced restrictions, many Brits have been given a chance to save money where they can, whether that be from cutting commuting costs or less unnecessary spending, such as eating out or entertaining. Comparatively, 22% feel the coronavirus had a negative impact on their finances whereas almost half (48%) were neutral and said their situation had not changed.
COVID-19 has not just transformed people’s attitude to money. For half of Brits (49%), their entire outlook on life has changed. Almost half (45%) say they will now value the things that are most important in life and 50% say they will appreciate the everyday things they weren't able to do during social distancing restrictions, such as going for walks in the park with friends, eating out, or going on holiday.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Although everybody thought the impact would be more a financial pinch at the beginning, the coronavirus became a financial punch for the majority of us, and with it brought to our attention how we really think about money and the things in life that matter most. Crucially, the pandemic has heightened the importance of having a financial buffer for unexpected events such as job losses or salary reductions.”
As part of the research, MAB partnered with chartered psychologist, Kim Stephenson to uncover five practical exercises anyone can try based on the things people cited as finding most challenging about money. Learn more here.
