Duncan Fortune, Head of Commercial at Tesco Bank, commented: “There are certain times in the year when people feel most motivated to review their finances and ensure everything is on track. September, with its back-to-school mindset, is one of those moments. As routines return and people take stock of their summer spending, it’s a natural opportunity to do your own financial homework and reassess budgets, review savings goals and get finances back in order. Taking the time to do this can help you feel more in control and confident about managing your money in the months ahead.”
Duncan shares his top tips to get on top of your “financial homework” this year:
Know where your money is going
It’s essential to understand your financial habits and where you’re spending your money. Reassess how much you need to cover essential outgoings, such as your mortgage or rent, household bills and food costs. It’s also worth checking whether any regular contracts or subscriptions could be reduced or switched for a better deal.
Once you’ve covered the essentials, see how much you’ve left for lifestyle spending, whether that’s dining out, hobbies or time with family and friends. This is particularly important given that 21% of Brits admit they don’t know how to best balance saving with day-to-day living costs and other financial goals, while 33% say they prioritise experiences and treats over how much they have in savings. Taking the time to lay your finances out on the table can give you a clearer picture of your money and help you make more informed decisions about spending and savings.
Keep a money journal
Keeping a clear record of your spending can make it easier to stay on top of your finances and spot areas where you could save more. Whether it’s on paper, a spreadsheet or one of the many budgeting apps available, tracking your income and outgoings can help you manage your money and stay focused on your savings goals.
While our research found that 28% of Brits are on track and fully committed to achieving their savings goals as quickly as possible, 26% admit they are still easily tempted to dip into their savings for other things. Regularly reviewing your spending can help you stay accountable and avoid losing sight of your longer-term objectives.
Just like setting aside time to check homework, it’s worth dedicating some time each week to review your finances and make sure you’re staying on track with your budget.
Find the right “money microtrend” for you
Money microtrends can be a great way to try new savings habits while working towards your financial goals. For example, a ‘no-spend challenge’, where you avoid non-essential purchases for a period of time, can curb impulse spending and boost your savings. There’s also the 1p challenge, where you increase your daily savings by 1p each day, can help you accumulate £667.95 over the course of a year. While the amounts may seem small at first, these simple can be an effective way to make a meaningful difference to your savings over time.
Turn money planning into a family lesson
Why not get the whole family involved in managing money? Whether children are just starting to learn about money or becoming young adults, there are valuable lessons to learn. Simple activities, such as saving pocket money or doing jobs around the house to earn a bit more cash, can help children understand the importance of budgeting and saving. Involving them in family tasks, such as the weekly food shop, can also provide useful lessons in planning, comparing prices and understanding the value of money.
Look to plan ahead
Looking ahead to the months ahead, whether that’s household bills, birthdays, family occasions or holidays, can help you avoid financial surprises and make your savings goals feel more achievable.
Even if it’s just putting a spare few pounds away each week, planning ahead for upcoming costs in advance can make you better prepared when they arrive and mean you’re less likely to dip into your savings to cover them.
