The people of Ireland are known anecdotally as a nation of savers. In lockdown we saw rates of ‘accidental saving’ increase as we had less opportunity to spend. In this issue of Reflecting Ireland, we find that with lockdown a distant memory, the challenge of a high cost of living still persists, which has taught us to continue to be cautious with our money as we seek the sense of security and control that savings provide.

In other respects, however, we are leaving money on the table. While there is a growing sense of relief and positivity about the economy and our own personal finances, there are undoubtedly opportunities to save more. Where we consider switching suppliers, we do not always follow through, similarly, while most of us intend to avail of grants and supports we may be eligible for, there are often barriers that get in the way or slow us down.

Mood of the nation

• For the first time in 2.5 years of tracking sentiment, we see some positive green shoots of optimism, with significant uplifts evident across many of our Public Mood measures.
• Despite economic sentiment being at its highest level, anxiety is still the dominant emotion. However, overall, positive sentiment has increased with less of us feeling pessimistic and more of us feeling calm and cheerful.
• The rise in people feeling more confident about their personal finances suggests people are moving towards a more sustainable approach to managing their future budgets.

Attitudes towards saving

• If we were given €1,000 in the morning, 6 in 10 said they would put their money aside for the future into savings or their pension, whereas just a third said they would spend it ‘in the now’ on the likes of a holiday or shopping spree.
• When it comes to motivations for saving, we are more likely to cite security, preparedness and control rather than saving for reward/treats. Women and 18-24s are more likely to report an emotional association with savings, with saving playing a role in lessening anxiety for these groups more than others.
• When it comes to choosing savings accounts, the safety and accessibility of our money is a priority, ahead of rates of return.

Saving behaviours

• Since April 2022, people are feeling more in control and equipped when it comes to managing their money. There has been a significant decrease in those who say they are budgeting more as a result of the cost-of-living. More people are saying they feel confident managing their day-to-day expenses and that they have money left over at the end of the month and that they could handle a major unexpected expense.
• Three-quarters of the population say they regularly save, meaning a quarter of the population are not saving on a regular basis. Those aged 45-54 are less likely to be regular savers.
• Saving for a ‘rainy day’ remains the number one reason to save for Irish people – this has increased since 2021.
• Just over half of parents have a savings account for their child. The main driver for having a children’s savings account is to instil good savings habits.

Cost-saving

• 2 in 5 say they considered changing utility providers in the past year to save money. There has been an increase in intention to switch providers for some utilities since 2022.
• Most who say they are not going to switch believe they are currently getting the best value. However, for those who may feel they could get better value elsewhere, the perception of hassle when it comes to switching is a barrier.
• When we look at where people are making sacrifices and cut-backs, it appears that less people are willing to cut-back on holidays (domestic or foreign) this year versus 2022.
• When it comes to benefits and entitlements, there appears to be some level of confusion about what people are eligible for and how to go about claiming these benefits.

Download the full #ReflectingIreland Report here

Read tips on how to save money here

The content of this blog does not constitute advice and is for general information purposes only. Readers should always seek professional advice before relying on anything stated in the blog. Some of the links above bring you to external websites. Your use of an external website is subject to the terms of that site.