Research into the Financial Attitudes, Lifestyles and Spending Habits of UK Consumers in 2013

Prepared by Scott Owens 18th February 2013

Robust Insight: Online Consumer Panel

Robust Insight | Website: www.robust-insight.co.uk | Telephone: 078252 69235 | Email: info@robust-insight.co.uk

Background to this Study

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ABOUT: Robust Insight Online Panel

Over 5,000 active members and growing every day

Highly engaged and highly responsive panellists Extensively profiled to efficiently target respondentsActively managed by a team of panel management experts

Methodology and Sampling

Over 250 panellists took part in our studyThey completed a 25 question online surveyThe survey was a mix of fixed choice and open questionsRespondents were given the chance to win Amazon vouchers for taking part

Background & Objectives

Robust Insight has recently launched an Online Panel of UK Consumers. The

panel is available to all clients who wish to gain quantitative feedback in the

form of an online survey. We also offer expert consultancy in the areas of

survey design, sampling, survey scripting, analysis and presentation

preparation.

To demonstrate the usefulness of the online panel we have run our first study entitled ‘Financial Attitudes, Lifestyles and Spending Habits of UK Consumers

in 2013’. The results are FREE to all prospective clients and we are currently offering 15% OFF to any organisations

who commission an online survey before 29th March 2013.

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• UK consumers continued to feel the pinch of the prolonged economic downturn

• The rising cost of living and bleak employment situation led to increased dissatisfaction with life and reduced optimism about the future

• Consumers were using a number of innovate ways to save money and boost their income to help make ends meet

− For example, trading in retailer loyalty points, selling existing possessions or taking on extra work or another job

• The Internet played a major role in allowing consumers to access cheaper deals

− For example, using online discount codes & coupons, shopping through cash back websites and switching energy providers

• Despite widespread dissatisfaction with the current economic climate family remained the most important aspect of their lives

Key Highlights

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Executive Summary

Executive Summary #1:Life Satisfaction

• Almost 6 out 10 respondents (58%) were satisfied with how things were going with their life

− Career, family and good health were key drivers of high life satisfaction− Money and employment issues were key drivers of low life satisfaction

• Less than a fifth felt their career (17%) or their financial situation (18%) had exceed their life expectations

• Financial security (57%) was their greatest hope for the future

− Followed by travelling (36%) and buying a home (19%)

• Only a third (34%) of respondents were optimistic about the future

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Executive Summary #2 Lifestyles

• The areas most likely to be rated important were personal happiness (80%), family (79%), financial security (78%) and partner/spouse (78%)

• Family (29%) and children (20%) were rated significantly higher than any other area when it came to the one most important thing in life

• In an average week respondents spent the most time using the internet, watching television and caring for children/kids activities

− Hobbies, personal hygiene and cooking were also popular pass times

• The most popular ways to spend a few extra hours a week were exercising (33%), me time (32%) and spending time with my partner (30%)

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Executive Summary #3 Spending Habits

• Less than a fifth of respondents (19%) felt their personal financial situation had got better in the last year

− With only a third (33%) expecting their personal finance situation to get better in the next 12 months

• Almost two-thirds (63%) had cut back on expenditure in the last 12 months

− The most likely expenditure to cut back on was clothing (70%), evenings out with family/friends (63%) and holidays (62%)

• The most popular ways to save money were shopping online for cheaper deals (72%), buying goods in the sales (71%) and using online discount codes (62%)

• The most popular ways to boost income were using retailer loyalty points (53%), selling existing possessions (50%) and taking on extra work or a second job (32%)

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8

Demographic Profile

9

Respondent Demographics

Gender Age Marital Status

Annual Personal Income Employment Status

The results in this survey have been weighted by GENDER AND AGE to ensure they are representative of the UK Adult Online population (Q1 2012). Source: ONS Internet Access Quarterly Update, 2012 Q1

Number of children under 18 in household

50%

50%25%

37% 38%

Under 35 35-54 55 or over

61%

31%

6%

Married/ Living with partner

Single, never married

Divorced, Separated or Widowed

38%

62%

With children

Without children

60%

40%

WorkingFull time, part time or self employed

Not WorkingRetired, student, homemaker, disabled, unemployed

Less than £20,000

52%£20,000-30,000

21%

More than 30,000

27%

*2% Other

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SECTION #1: Life Satisfaction

Life Satisfaction

8% 17% 17% 47% 11%

Overall, how satisfied or dissatisfied are you with the way things are going in your life today?

Extremely dissatisfied Somewhat dissatisfied Neither satisfied nor dissatisfied Somewhat satisfied Extremely satisfied

58%

Top 2 box

• Almost 6 out of 10 respondents (58%) were satisfied with the way things were going in their life today

− A further 17% were neither satisfied nor dissatisfied and a quarter (25%) were dissatisfied

Groups with the Lowest Life Satisfaction

Registered Disabled 0% Divorced/Separated/Widowed 29% Registered Unemployed 35% Earning less than £20,000 per year 47% No children 52% Aged over 55 52%

Groups with the Highest Life Satisfaction

Self Employed 80% Earning more than £30,000 per year 76% Aged between 18 and 34 68% With children 68% Employed Full Time 66% Married/ Living with a partner 62%

N=257 11

Reasons for High Life Satisfaction

12

8%

9%

13%

13%

15%

16%

19%

23%

Children

House/home

Finances/ money

Friends

Partner/spouse

Health

Family

Career

Why are you satisfied with the way things are going with your life today?

• Career (23%), Family (19%) and Health (16%) were main areas mentioned by those who were satisfied with how their life was going today

“I am extremely satisfied as I have a loving partner, my family and my

career. I am doing well in life.”

“I am financially secure, my children and extended family are reasonably

healthy. My children are in stable jobs and in good relationships.”

“I have three happy healthy children and a

lovely husband and I am generally content.”

“I have a lovely family and extended family. I am

fulfilled with my work. I have lots of friends and

have good holidays.”

N=150

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Reasons for Low Life Satisfaction

N=164

3%

5%

6%

8%

15%

27%

29%

Old age

Single

Recession

Poor health

Dislike job

Can't find work

Lack of money

Why are you dissatisfied with the way things are going with your life today?

• Lack of money (29%), can’t find work (27%) and dislike job (15%) were main areas mentioned by those who were dissatisfied with how their life was going today

“Working more but not earning much more money - things costing more so less disposable income.”

“This recession has really affected me and my family for financial reasons as well as employment

prospects for our grown children.”

“My husband is out of a job and it

is hard to make ends meet.”

“Because my health is bad right now, which has affected

my career.”

Evaluating Aspects of Life Today

12%

13%

6%

9%

6%

7%

4%

7%

3%

2%

3%

3%

4%

33%

35%

17%

22%

27%

22%

14%

18%

16%

15%

12%

12%

10%

37%

35%

56%

47%

43%

44%

49%

35%

38%

33%

35%

31%

29%

13%

13%

16%

16%

17%

24%

25%

27%

21%

31%

29%

23%

24%

4%

5%

5%

6%

7%

4%

8%

13%

22%

19%

21%

31%

34%

Career

Financial situation

Place in society

Control over my destiny

Social life

Work/life balance

Education

Happiness

Relationship with my friends

Family

Relationship with my parents

Relationship with my partner

Relationship with my children

Thinking about what you want in life, how would you rate the following aspects of your life today?

Significantly below expectation Below expectation Meets expectation Exceeds expectation Greatly exceeds expectation

57%

54%

50%

50%

44%

40%

33%

28%

24%

22%

21%

18%

17%

Top 2 box

N=164-254 (Excludes Not Applicable)

• The aspects most likely to exceed expectations related to relationships with children (57%), partner (54%), parents (50%) and family (50%)

• The aspects least likely to exceed expectations were career (17%), financial situation (18%), place in society (21%) and control over destiny (22%)

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Hopes for the Future

1%

2%

3%

4%

5%

5%

6%

7%

8%

11%

12%

15%

15%

16%

16%

16%

18%

19%

36%

57%

Move to the city

Send my children to a private school

Simplify my family life

Reduce work hours

Buy an investment property

Move to the country

Return to work

Promotion at work

Pursue more education

Get married

Volunteer/give back

Find the right partner

Change careers or start a business

Pursue a hobby

Pay off my home

Make more time for my family

Have children/ more children

Buy a home

Travel

Financial security

What are your THREE greatest hopes for the future?

• Over half of respondents (57%) selected financial security as one of their three greatest hopes for the future – this was significantly higher than any other option

• Other popular hopes for the future were to travel (36%), buy a home (19%) and have children/ more children (18%)

N=257

Differences between Males and Females

Males were more likely than females to want:-

- Financial security - Pursue a hobby - Pay off home - Change careers or

start a business

Females were more likely than males to want:-

- Return to work - Volunteer give back - Move to the country - Reduce work hours = sig. higher

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Feelings About the Future

18% 48% 34%

In general, how do you feel about the future?

Pessimistic Average Optimistic

Only a third of respondents (34%) felt optimistic about the future, with a further half (48%) feeling average and almost a fifth (18%) feeling pessimistic

Groups most likely to be Optimistic

Self Employed 68% Earning more than £30,000 per year 48% Full Time Student 48% Aged between 18 and 34 45% With children 40% Single, never married 42% Females 38%

Groups most likely to be Pessimistic

Registered Disabled 84% Registered Unemployed 45% Not Working 42% Divorced/Separated/Widowed 29% Earning less than £20,000 per year 25% Males 25% Aged between 35-54 22%

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Lifestyles

Importance of Life Aspects

Personal happiness (80%), family (79%), financial security (78%) and partner/spouse (78%) were the most likely areas to be rated very or extremely important

N=207-255 (Excludes Not Applicable) 18

26%

33%

36%

43%

44%

48%

48%

64%

65%

73%

76%

78%

78%

79%

80%

Sport

Community

Giving back/philanthropy

Wealth

Hobbies

Career

Education

Friends

Health and fitness

Comfortable household

Children

Partner/ spouse

Financial security

Family

Personal happiness

How important are the following items in your life?

Very/ Extremely important

Sport (26%), community (33%) and giving back/philanthropy (36%) were the least likely to be rated very or extremely important

Most Important Life Aspect

10%

11%

11%

20%

29%

Health and fitness

Partner/ spouse

Personal happiness

Children

Family

And what is the single most important thing in your life? (Top 5)

• Family (29%) and children (20%) were rated significantly higher than any other area when it came to the most important thing in life

• Personal happiness (11%), partner/spouse (11%) and health & fitness (10%) were also rated highly

19

= sig. higher

Differences between Males and Females

Females selected family and children more than males

Males selected personal happiness and health & fitness more than females

Allocation of Time

1.2

2.4

2.4

2.5

2.9

3.2

4.2

4.2

4.2

5.6

5.7

6.2

7.3

9.6

13.2

13.6

Volunteer activities

Shopping (for myself, family, home, gifts)

Household maintenance

Laundry

Grocery shopping

Exercising or playing sports

Reading

Cleaning

Family Activities

Socialising

Cooking

Personal hygiene / Grooming

Hobbies/Personal activities

Caring for children/kids activities

Watching television

Using the Internet (non-work related)

On average, how many hours per week do you spend on the following activities?

Number of hours per week

Differences between Males and Females

Females spent more time than males:-- Caring for children- Personal hygiene/Grooming- Cooking- Cleaning

Males spent more time than females:-- Using the Internet - Hobbes/Personal activities- Exercising or playing sports

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Differences between Age Groups

- Under 35s spent more time socialising than older age groups

- 35-54s spent more time caring for children and family activities than other age groups

- Over 55s spent more time watching television and reading than younger age groups

• On average, respondents spent the most time using the internet (13.6 hr/wk), watching television (13.2 hr/wk) and caring for children/kids activities (9.6 hr/wk)

Allocation of an Extra Few Hours Per Week

4%

5%

9%

11%

14%

14%

18%

18%

18%

18%

28%

30%

32%

33%

Watching television

Working

Reading magazines, books, journals

Catching up with extended family

Surfing the internet

Playing with my children

Completing everyday tasks & chores

Giving back/volunteering

Studying/learning

Pursuing my hobby

Catching up with friends

Spending time with my partner

Me time – doing things that I enjoy

Exercising/personal fitness

If you were given a few extra hours every week, how would you spend them?

The most popular ways to spend a few extra hours per week were exercising/ personal fitness (33%), me time – doing things that I enjoy (32%) and spending time with my partner (30%)

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Differences between Males and Females

Females were more likely than males to spend their extra time:-

- Catching up with friends- Playing with children- Catching up with extended

family

Males were more likely than females to spend their extra time:-

- Pursuing a hobby- Studying/learning- Giving back/volunteering

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Spending Habits

Personal Finance Situation

7%

30%

47%

17%

Don't even have enough to meet basicexpenses

Just meet your basic living expenses

Meet your basic expenses with a littleleft over for extras

Live comfortably with little financialworries

How would you describe your own personal financial situation? Would you say you….

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• Almost two-thirds of respondents (63%) described their financial situation as comfortable with little financial worries (17%) or enough to meet basic expenses with a little left over for extras (47%)

• A further third (30%) had enough to meet basic living expenses and only 7% did not have enough to meet basic expenses

Most likely to have little financial worries

Retired 31% Females 25% Earning over £30,000 per year 24% Aged 55+ 20% Without children 19%

Most likely to not be able to meet basic expenses

Registered unemployed 44% Earning less than £20,000 per year 12% Single, never married 11% Aged between 18 and 34 11% With children 8%

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10% 32% 38% 16% 3%

How has your personal finance situation changed compared with this time LAST YEAR? It is…

1 - A lot worse 2 - A little worse 3 - The same 4 - A little better 5 - A lot better

Personal Finance Situation

6% 23% 38% 27% 6%

How do you expect your personal finance situation to change over the NEXT 12 MONTHS? It will…

1 - Get a lot worse 2 - Get a little worse 3 - Not change 4 - Get a little better 5 - Get a lot better

The groups most likely to feel their personal finance situation had got better (19%) were:-- Under 35s- Earning more than £30,000- Employed FT/ Self Employed

The groups most likely to feel their personal finance situation had got worse (43%) were:-- Over 55s- Registered Disabled- Unemployed/ Not Working

The groups most likely to expect their personal finance situation to get better (33%) were:-- Under 35s- Earning more than £20,000- Employed FT/ Self Employed

The groups most likely to expect their personal finance situation to get worse (29%) were:-- Over 55s- Retired- Registered Disabled- Unemployed/ Not Working

Top 2 box

19%

Top 2 box

33%

25

17%

11%

2%

4%

17%

15%

11%

10%

27%

28%

28%

17%

23%

22%

38%

35%

15%

24%

22%

33%

In a year from now I am sure that I will be financially better off

In the last 12 months I have felt financially a lot worse off thanbefore

I plan ahead more than I used to when it comes to money

I have made a conscious effort to spend less money recently

Below are some statements other people have made about money matters. To what extent do you agree or disagree with the following statements.

1 - Disagree strongly 2 - Disagree slightly 3 - Neither agree nor disagree 4 - Agree slightly 5 - Agree strongly

Attitudes to Money Matters

Top 2 box

69%

60%

46%

39%

• More than two-thirds (69%) of respondents agreed with the statement ‘I have made a conscious effort to spend less money recently’

• Six out 10 (60%) agreed with the statement ‘I plan ahead more than I used to when it comes to money’

26

6%

7%

9%

9%

10%

10%

11%

15%

17%

17%

18%

24%

25%

31%

43%

Childcare costs

Cuts in government benefits

Mortgage costs

Pay freeze

Saving for a pension

Insurance costs

Fear of losing my job or having my working hours cut

Rent costs

Debt repayments

Public transport costs

Difficulties finding a job

Food costs

Motoring costs

Lack of savings

Utility costs (gas, electricity and water bills)

What are your greatest financial worries at the moment? Please select up to 3 answer options.

Financial Worries

• Utility costs (43%), lack of savings (31%), motoring costs (25%) and food costs (24%) were the greatest financial worries at the moment

27

37%

20%

19%

14%

5%

21%

21%

16%

13%

6%

9%

6%

3%

16%

19%

16%

19%

22%

14%

17%

12%

13%

23%

26%

31%

29%

26%

36%

32%

13%

17%

23%

23%

41%

46%

38%

53%

I sometimes have to use credit to pay my bills

I sometimes have trouble keeping on top of my bills

I often run short of cash before my next payday

My family would help me out if I was ever struggling to make ends meet

I am spending more on everyday essentials and less on treating myselfthan 12 months ago

I am spending more on petrol / transport than I did 12 months ago

I am spending more on supermarket shopping than I did 12 months ago

I am paying more on my household bills including gas and electricitythan I did 12 months ago

To what extent do you agree or disagree with the following statements about household bills and managing your money.

1 - Disagree strongly 2 - Disagree slightly 3 - Neither agree nor disagree 4 - Agree slightly 5 - Agree strongly

Household Bills and Managing Money

85%

74%

72%

70%

54%

49%

40%

25%

Top 2 box

• The majority of respondents (85%) agreed with the statement ‘I am paying more on my household bills including gas and electricity than I did 12 months ago’

• Three-quarters agreed with the statement ‘I am spending more on supermarket shopping than I did 12 months ago’

N=218-248 (Excludes Not Applicable)

28

37%

63%

No

Yes

Have you cut back on any expenditure over the last 12 months?

Cutting back on Expenditure

7%

7%

22%

22%

22%

23%

25%

26%

30%

43%

59%

62%

63%

70%

Broadband

Pet care costs

Electric and heating costs

Mobile phone tariff

Satellite or cable TV

Gym membership

Insurance products

Driving/ motoring costs

Toiletries and personal grooming

Food costs

Days trips with family/ friends

Holidays

Evenings out with family/ friends

Clothing

Which of the following have you cut back on in the last 12 months?

• Almost two-thirds (63%) had cut back on expenditure in the last 12 months

• The most likely expenditure to cut back on was clothing (70%), evenings out with family/friends (63%) and holidays (62%)

29

6%

9%

15%

24%

27%

37%

39%

42%

44%

47%

58%

62%

71%

72%

Installed a pre-payment energy meter

Given up smoking

Cancelled gym membership

Booked holidays earlier to benefit from discounts

Switched energy providers to get the best deal on gas or electric

Cut back on my use of credit

Shopped at a local market

Walked/cycled instead of paying for car/bus/train

Switched to a cheaper supermarket

Used coupon websites (like Groupon or Living Social)

Switched from branded to own-brand products

Used online discount codes

Bought clothes and other goods in the sales

Shopped online for cheaper deals instead of in store

Have you done any of the following to SAVE MONEY over the last 12 months?

Saving Money

• The most popular ways to save money were shopping online for cheaper deals (72%), buying clothes and other goods in the sales (71%) and using online discount codes (62%)

30

5%

7%

9%

9%

16%

19%

21%

21%

22%

32%

50%

53%

Rented out my parking space

Taken in a lodger

Claimed back PPI (Payment Protection Insurance)

Received an incentive for referring family/friends to a company

Used a credit card to gain cash back on purchases

Moved my savings into a tax free ISA

Traded my old mobile phone in for cash (e.g. Envirofone or MazumaMobile)

Investigated what extra government benefits I/my family were entitledto

Shopped online through cash back websites (e.g. Quidco or TopCashBack)

Taken on extra work, overtime or a second job

Sold some of my existing possessions (e.g. on eBay or at a car boot sale)

Traded in retailer loyalty points

Have you done any of the following to BOOST YOUR INCOME over the past 12 months?

Boosting Income

• The most popular ways to boost income were trading in retailer loyalty points (53%), selling existing possessions (50%) and taking on extra work or a second job (32%)

31

Thank you – we hope you found the results of this survey interesting and useful.

For more information about this survey or to discuss the Robust Insight Consumer Panel in

more detail please contact Scott Owens on 078252 69235 or email us info@robust-

insight.co.uk

Robust Insight | Website: www.robust-insight.co.uk | Telephone: 078252 69235 | Email: info@robust-insight.co.uk