How Do UK Consumers Spend Their Disposable Income?

A new study from Bauer Media Outdoor found that 38% of people in the UK are spending more of their disposable income now than they did a year ago. This comes despite ongoing cost of living pressures.

The research, which involved 2,000 people across the country, shows that many are choosing to prioritise enjoyment and quality of life over cutting back lately…

Travel is the top choice for spending, with 33% of people saying they use their spare cash for trips. Then, clothes at 26%, followed by home improvements at 25%, entertainment at 23%, and hobbies at 20%. People seem to be splitting their money between both longer term goals and short term pleasures.

The reasons behind spending are different across the board. 32% of them spend to feel better emotionally, while 31% wants new experiences, and then about 23% say they spend in pursuit of self-improvement, with 19% going to wanting to strengthen social bonds. The pattern of spending also differs depending on income, age, and location.

 

What Are Younger People Spending Their Money On?

 

Spending patterns change with age. Gen Z and Millennials are more focused on social experiences. A third of Gen Z say snacks are their top spend, followed closely by entertainment. Nearly 1 in 5 spend most of their money on watching films, and about 9% of younger Gen Z respondents spend heavily on dating.

Millennials tend to spend more on clothes, with the report showing 37%, and 30% for travel. They are also a bit more socially active than Gen Z.

So, the report shows that 5% of Millennials go out every day, compared to just 2% of Gen Z. They are also the group most likely to say that self-improvement drives their spending.

Older age groups are more interested in things like travel and experiences. For those aged 35 and above, travel takes up most of their extra money. People aged 35 to 44, who tend to have the highest disposable income, also spend more on technology and beauty products.

 

 

Where Are People Going Out, And How Often?

 

The idea that people in the UK have stopped going out due to rising costs , according to this report’s findings, isn’t quite true.

In fact, about 25% of those surveyed go out at least once a week, and 10% go out every few days. Among 25 to 34 year olds, 32% go out weekly, with a small but active group of 5% going out daily.

Those aged 18-24 showed nearly a third going out a few times a week. These outings often include spending, especially when linked to socialising. Younger adults are more likely to spend on nightlife, dining, and entertainment compared to older generations.

 

Do Men And Women Spend Differently?

 

There are small but clear differences between men and women in how they spend their free time and money. Women are more likely to spend money on clothes and groceries. About 22% of women spend on clothes compared to 15% of men. Women are also more active in grocery shopping, with 73% citing it as a main area of spending, compared to 64% of men.

When it comes to quality time and eating out, spending is more evenly spread. About 26% of respondents spend money on family time, and 29% enjoy eating out.

 

Which UK Cities Are Spending More?

 

Aberystwyth has seen the biggest increase in disposable income spending over the past year. People in the town are more likely to spend on snacks, technology, wellness products, and beauty. This is more than many other spending categories, even more than large cities.

Ben Hope, Marketing Director at Bauer Media Outdoor UK, says, “It’s a common misconception that only big cities have consumer potential. Our insight challenges that theory.

Other places with high spending levels include Glasgow, London, Manchester, Sunderland, and Belfast. The data shows that spending is happening across the country, and not just in well known urban centres. Cities like Chelmsford and Portsmouth also made the top ten list for disposable income spending.

Hope added, “Across the UK, there are consumers with a strong spending power, in cities both big and small.”

 

Who Does The UK Spend On?

 

Most Brits spend their disposable income on themselves or their children. Just under a third focus on themselves, while 28% direct that money to their kids. 19% use it for their partners. As income goes up, people tend to spend more on their children than themselves.

This spending is often used to make people feel better, or improve quality of life. It could be by getting some sweet treats, going on holidays, or just simply family time… Point is, people across the UK are finding ways to make their money work for them in ways that matter on a personal level.