There are eight types of money-spenders in the UK, so where do you stand in terms of budgeting your hard-earned cash?
Research has found Brits are most likely to spend with their heart, rather than their head, but with the need to sit in a beer garden in hot weather and the ease of ordering with Deliveroo, can you blame us?
A study of more than 9,000 consumers, carried out by HSBC UK, revealed spenders can be split into eight ‘attitudinal segments’, with each group possessing unique attitudes and characteristics which tell how they manage their money.
Take the test to find out which one you are!
Here are the different groups:
Trend Spender (16 per cent) – Trend Spenders are ruled by their heart so stretching their finances doesn’t scare them as long as they can maintain their lifestyle. After all, if they see it, they want it.
Driven Achiever (15 per cent) – Driven Achievers know what they’re doing when it comes to managing their money. They spend time doing their research, allowing them to make savvy decisions and are comfortable pushing their financial boundaries if they think there’s going to be a pay-off.
Sensible Sage (15 per cent) – ‘The sensible one!’ That’s possibly what Sensible Sage’s are likely to hear. ‘Save now to spend later’ is their motto. Being considered is very important to them and they see no point in getting into debt unless they can pay it off in full every month. Bargains matter, as does finding the best deal.
Self Sufficient Spender (14 per cent) – Sufficient Spenders are confident multi-taskers who know what they want. They’re independent in spirit and like to make things as easy as possible, so they’re keen online shoppers. Although they’re not flashy, investing in quality matters to them and they like to live life their way.
Controlled Saver (14 per cent) – They’re in total control when it comes to finances. Saving is important to them and they’re cautious when it comes to taking on any financial risk. They’re no slave to labels and rarely splash out, but they’re loyal to the brands they know and love. The personal touch is important to them, so they prefer to conduct their financial affairs face to face
Skilled Saver (10 per cent) – Skilled Savers keep a tight rein on their finances and their strict budgeting skills mean they always stay on track. A resourceful nature means that nothing goes to waste when they’re around. Careful saving habits make them averse to taking on credit cards or loans so they always live within their means
Spontaneous Spender (9 per cent) – Their friends come to them for wisdom as they are always trying new things and have new ideas. Spontaneity is very important to them. If it’s a choice of staying in to save money or going out to the latest restaurant they’re all about the latter.
Budget Guru (7 per cent) – Their financial discipline is the envy of their friends as they balance the books to come in on budget. They’re not ones to splash out but take careful considered financial decisions.
While we all might wish to be a Budget Guru, ‘Trend Spenders’ emerged as the most prominent group – those who are ruled by their heart when it comes to money and don’t feel worried about loosening the purse strings as long as they can maintain their lifestyle.
More people found themselves in this category than in ‘Sensible Sage’ or ‘Skilled Savers’, which describe those who are more cautious when it comes to their spending.
Becky Moffat, Head of Personal Banking and Advance at HSBC UK, spoke about the habits of British spenders, saying:
Brits are notoriously reluctant to talk about money and this can impact our financial behaviour.
Forty-five per cent only check their main bank account once a week or less and one in 10 only check it once a month.
We want to encourage Great Britain to start thinking about how their financial personality could affect how they manage their money, which is why we’ve released the Bank-Life Balance test.
The research also found London is home to a higher number of ‘Driven Achievers’ than the national average.
Meanwhile, millennials are most likely to be ‘Sensible Sages’. Way to go, millennials!
HSBC UK released the test to coincide with the roll out of its Connected Money App, which lets customers see accounts from different banks on one screen.
Raman Bhatia, Head of Digital Bank, HSBC UK explained how the app is useful:
The test showed me that I am a Trend Spender, so it really doesn’t surprise me that 55 per cent of people like me admit to making impulse purchases.
As one of the UK’s biggest retail banks we have a responsibility to make banking simpler and easier. Bank-Life Balance is one way we are doing this in addition to Connected Money.
The app provides a joined-up view of your financial life, no matter who you bank with, all in one place.
Through all of these efforts we remain committed to helping customers to have a better relationship with their money.
The Bank-Life Balance Test is available here.
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