One in five people have no emergency savings at all, new survey reveals
Men in the UK are typically putting away hundreds more than women when it comes to emergency savings, according to new research commissioned by online budgeting tool IE Hub.
The study found that men who have a “rainy day” fund have, on average, £8,771 saved for unexpected costs – around £1,300 more than their female counterparts, who have squirrelled away approximately £7,463.
But the research, which surveyed 2,000 adults across the UK in May via OnePoll, also laid bare the fragility of many people’s financial positions. A concerning one in five (20%) respondents admitted they have no emergency savings at all, leaving them vulnerable should an unexpected bill or emergency arise.
Gareth Llewelyn, chief commercial officer at IE Hub, said the findings reflected “a growing financial vulnerability among UK households.”
He noted: “The size of the typical rainy day fund is encouraging for those who have one, but the fact that 20% have nothing set aside and 9% are unsure of their monthly income highlights just how many people are navigating their financial lives without the tools or confidence they need.”
The survey also uncovered some alarming insights into the nation’s money habits. Nearly one in 10 respondents (9%) said they do not know exactly how much money is deposited into their account each month, and an equal number confessed they have never attempted to create a budget.
Meanwhile, a worrying one in six (15%) people admitted they lack confidence in knowing how much disposable income they have left after paying their essential bills each month. This uncertainty could lead to overspending or difficulty managing unexpected costs.
However, not all of the findings were negative. A diligent quarter (26%) of those surveyed said they check their bank balance daily – a habit praised by financial experts as a good step toward money mindfulness.
Encouragingly, younger generations appear to be developing a healthier relationship with budgeting. Around 13% of 18 to 24-year-olds and 10% of those aged 25 to 34 said they had recently taken up budgeting – compared with just 6% across all age groups. This suggests a growing financial awareness among Gen Z and younger millennials.
To help improve financial literacy and build stronger financial resilience across the population, Mr Llewelyn offered five key tips:
- Track your income and outgoings
Understanding where your money is going each month is vital. Keep a close eye on both income and expenses, and pinpoint any non-essential spending that could be trimmed. - Set a savings goal
Even a modest, regular contribution can build up over time. Mr Llewelyn recommends putting aside a small, achievable percentage of your income into a dedicated savings account. - Automate your savings
Treat savings like any other monthly bill. Set up a direct debit to transfer a fixed amount to your savings account as soon as your wages arrive. - Use free budgeting tools
Digital apps and online resources can provide a clear overview of your finances and help build budgeting confidence.
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- Review and adjust regularly
Life is ever-changing, and so are financial needs. Regularly reviewing your budget allows you to make informed decisions and stay on track.
As inflation, rent costs, and everyday living expenses continue to stretch household budgets, the importance of financial resilience has never been greater. Experts are now calling for better financial education and greater access to tools that support people in building stable, secure financial futures.
“Financial confidence shouldn’t be a luxury,” Mr Llewelyn added. “Everyone deserves the tools to prepare for life’s uncertainties, regardless of income or background.”
