Fakeaways and Joint Baths To Beat Frugal February

DIY Takeaways and Doubling Up Bath Water Help Brits Get Through Toughest Financial Month

While January is typically considered the worst month for financial blues, new *research shows February is just as crippling, if not worse when it comes to managing the family budget. Many are left with ‘empty pocket syndrome’ – i.e. no budget left to cover daily expenditure.

February sees the arrival of higher winter utility bills and credit card statements containing the majority of Christmas spend – two key reasons why 78% of families are attempting to cut domestic costs in February, according to loyalty card Nectar, as they launch their annual ‘Savvy Family’ campaign.

And while 30% of families admit they’re still paying off Christmas, research shows the average parent has just £273.17 of disposable monthly income, and will have exhausted this seven days before their next pay day. Over 15% even admit to spending their entire disposable income halfway through the month!

NECTAR Watching the pennies

Result – 35% of Brits have undertaken a review of their finances, with a further 43% planning to do so in the coming weeks. Top expenses to be reduced are groceries (57%), restaurant meals (53%), nights out (46%), clothing (42%) and alcohol (40%). Around 12% also say they are spending less on the lottery and a similar number are seeking alternatives to paying for public transport. Encouragingly, 66% of families polled claim to be savvy with money and finances, and the research uncovers a many ways the nation is saving valuable pennies this month:

Fakeaways: forget costly takeaway meals, 35% are making their own replica Chinese and Indian banquets at home for a fraction of the cost

Sharing it: 12% of families save money on household bills by sharing bath water, while 5% do their weekly food shop with a friend or neighbour to take advantage of special offers 

Bringing Hollywood home: 26% of families are reducing cinema visits, and 17% are recreating the experience at home with a DVD, dim lighting and microwaved popcorn 

Bargain hunters: 50% of respondents will seek the reduced items section at the supermarket with 42% relying on loyalty points and vouchers. A thrifty 17% make purchases at charity shops

Food for thought: families are using creative tactics to keep stomachs full without emptying their wallets – 21% cook a big meal in bulk and freeze portions to eat throughout the week, and 40% avoid expensive cafes and take a packed, home-made lunch to work

When it comes to financial advice, 24% of families will likely procure savvy money tips from family members, against just 4% who would consult their banks. TV presenter and property developer

NECTAR Budgeting

Sarah Beeny, who will be helping Nectar find the nation’s Savviest Family, said: “Many people breathe a sigh of relief when the January payday comes around – but a lot of people are still picking up the financial slack in February and struggling even more for cash.

This Easter, a families across the UK will be blogging on nectar.com about their money-saving tips in a bid to be crowned the UK’s Savviest Family. Families wishing to enter Savvy Family 2013 can apply now at www.nectar.com/savvy.

*Survey of 2000 UK adults with at least one child under 16 living at home, carried out by One Poll

Nectar is the United Kingdom’s leading coalition loyalty programme, is owned by Aimia, a global leader in loyalty management. In 2012, Nectar celebrated 10 years of rewarding British shoppers and has given back £2billion of rewards to collectors.