From streaming subscriptions to memberships, many of the little costs we pay out every day can quietly add up over time. L&G’s survey explores the nation's hidden spending habits, revealing the everyday payments that often go unnoticed, and the steps households are taking to stay on top of their finances.
The subscriptions people forget about
Recurring payments, such as subscriptions and memberships, were one of the biggest areas of unnoticed spending. Over a third (35%) said they pay for services they use infrequently, no longer use, or are unsure which subscriptions they are paying for.
Of those respondents, more than a quarter (27%) said they had forgotten to cancel a subscription, while 23% admit that they did not realise they were still paying for it.
The average amount spent on forgotten or unused subscriptions was reported to be £22.47 a month, with the highest spend being from those aged 25-34, £23.53 a month.
Staying on top of finances
Encouragingly, many adults are already taking steps to keep track of their spending. More than four in 10 (42%) said they regularly review the subscriptions, memberships, direct debits, and recurring services they pay for.
Overall, UK adults check their regular payments nearly four times a month (3.83), while those in Wales reported the highest average review frequency of any UK region, at over six times a month (6.14).
The findings suggest many households are taking positive steps to manage their finances. Managing day-to-day living costs was the most common financial priority among respondents (42%). Nearly one in five (19%) said protecting their family's financial future was a current priority.
Looking beyond everyday spending
While reviewing everyday expenses can help households stay on top of their finances, many people are also thinking about how they can build financial security for the future.
More than half (51%) of respondents reported they have some form of financial protection in place. Life insurance was the most commonly held product, with almost a third (32%) saying they currently have cover in place. Decreasing life insurance was held by 15% of respondents, while 12% have critical illness cover and 10% have income protection.
However, more than four in ten (41%) people said they do not currently have any form of financial protection in place. Among those without cover, the most common reason was a belief that they did not need it (28%), while 21% thought it would be too expensive and 16% said they had other financial priorities.
James Shattock, Managing Director, Protection and Retail Retirement L&G: "Our research shows that many people are becoming increasingly aware of the smaller everyday expenses that can quietly add up over time. Whether it's subscriptions, memberships or other recurring outgoings, regularly reviewing where your money is going can help ensure it remains aligned with your financial priorities."
"Building good financial habits isn't only about managing day to day spending. It's also about thinking ahead and considering how you might protect yourself and your loved ones against life's unexpected events. Having the right protection in place can provide valuable peace of mind and greater financial certainty for the future."
Read L&G's full report
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