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NORTH SOUTH DIVIDE WHEN TALKING MONEY
28 November 2016
NORTH SOUTH DIVIDE WHEN TALKING MONEY

Families in the south of the UK spend more time talking and thinking about money, exclusive research from RCI Bank has revealed, with the top four cities for money talk located in the southern part of the UK. On average, families living in southern England spend over an hour and a half (1hr 32mins) discussing money each week, compared to an hour and 17 minutes spent by families living in northern England.

 

Money issues have traditionally been seen as taboo for Brits to discuss at the kitchen table, but families are now spilling the beans on their money ideas and concerns, with one in ten (8%) families across the UK admitting to always having money matters on their mind or talking about them out loud. RCI Bank’s exclusive data further reveals that on a national level, a quarter (25%) of families are now spending on average over 21 hours per year more thinking and talking about money than they were six months ago, with one in ten (9%) spending at least two extra hours per week doing it.

 

Jean-Louis Labauge, CEO of RCI Bank, said: “With political and financial uncertainty continuing to be felt following the Brexit vote and the recent US election, it is clear that families across the UK are keen to voice their money concerns, with the aim of strengthening their financial situation. Whilst it’s encouraging to see southern families taking up the money talk mantle, hopefully families in the north and the UK’s older generations will be upping their money talk in the future.”

 

Although discussions about money are increasing on average across Britain, the data reveals that families in Brighton are spending on average almost 40 minutes more every week on money talk than those in Newcastle, adding up to more than four working days over the course of a year.

 

Top four cities for money talk:

City

Time spent on money talk

Brighton

1 hr 37 mins a week – 20 mins more than six months ago

Bristol

1hr 36 mins a week – 8 mins more than six months ago

Norwich

1hr 35 mins a week – 34 mins more than six months ago

London

1hr 34 mins a week – 31 mins more than six months ago

Source: RCI Bank October 2016

 

Bottom four cities for money talk:

City

Time spent on money talk

Newcastle

1 hr a week – 25 mins more than six months ago

Leeds

1hr 07 mins a week – 31 mins more than six months ago

Sheffield

1hr 09 mins a week – 19 mins more than six months ago

Edinburgh

1hr 14 mins a week – 21 mins more than six months ago

Source: RCI Bank October 2016

 

A shift has not only been seen regionally but demographically as well, with the younger generation aged between 18-34 almost doubling the amount of time they spend thinking and talking about money in the last six months, jumping from 46 minutes to 1 hour 35 minutes per week. In contrast, adults aged 55 and over spend just over one hour per week talking about money, an increase of only nine minutes compared to six months ago.

 

Money talk makes Brits better savers

When asked to explain their new found financial openness, over a third (34%) of UK families stated that thinking and talking about money more often makes them better savers, with a further third (32%) saying they are able to find better deals on their finances once they share ideas with each other.

 

Who’s to be trusted?

The research also revealed that despite families talking and thinking about money more, only a fifth (21%) of adults would trust their partner the most to give them sensible advice around money. Nearly a quarter (23%) of adults trust their parents to give them sensible money advice, three times as many as those who said they would trust their bank manager (8%).

 

RCI Bank’s research also revealed that a third (31%) of adults are also saving more per month than they were last year, and just 15% are saving less. Of those saving more, people are putting away an average of just over £62 extra per month, totalling an impressive £750 over the course of a year, and just over one in ten (11%) adults are saving at least £100 more per month than they were in 2015.

 

The impact of Christmas

With Christmas fast approaching, a third (30%) of adults are planning to dig into their savings in order to cover their festive spending habits, with a further one in ten (13%) using their credit cards and one in 20 (5%) having to use their overdraft.

 

Furthermore, the research revealed that a third (34%) of adults in a relationship do not plan on telling their partner how much they plan to spend around the festive season, with a quarter (23%) reasoning that is this because they are more generous with their gifts than they’d admit to being and a further quarter (23%) saying they don’t like their partner knowing how much they spend on gifts. A quarter (25%) of men also admit that it’s because their partner normally spends more than them, compared to just 6% of women.

 

Jean-Louis Labauge, CEO of RCI Bank, said: “We welcome the news that so many families are putting more money away than they were 12 months ago, and that adults are securing their financial future with an extra £750 a year in their savings pots. Saving for the future is important at any stage in a family’s progression and we hope these conversations continue to be had, be it first thing in the morning or around the dinner table. With the festive season also fast approaching, it is important families plan ahead to the best of their abilities, as strong saving habits can go a long way to make the holiday period less stressful.”

 

RCI Bank account range

  • Freedom easy access: 1.00% AER gross variable
  • 1 year Fixed Term: 1.20% AER gross
  • 2 year Fixed Term: 1.35% AER gross
  • 3 year Fixed Term: 1.50% AER gross

 

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