A fifth of Brits would spend a windfall on a holiday

Published on 5 December 2016 by Raffick Marday

A fifth of Brits would spend a windfall on a holiday

Everybody would welcome a little unexpected cash heading their way, and according to a new study by J.P. Morgan Asset Management, British consumers would split into two camps when it comes to what they would do with the money.

In the event of receiving a £15,000 windfall, people would quickly divide into savers and spenders, the report said.

Nearly half of the people asked said that they would save the money, and a further fifth would invest it. One in six would take the opportunity to pay off some of their mortgage.

Opening a bank account tailored to your personal needs is an excellent way to encourage good savings habits.

However, a number of people were less financially savvy and suggested they would not be able to resist making an expensive purchase.

22% of people would spend the money on a holiday and 18% would use it for home improvements. A new car was top of the list for 11% of those who took part.

Head of UK Funds Marketing at J.P. Morgan Asset Management, Keith Evins, said: "We are a nation divided on how we would spend a £15,000 windfall, and it's a case of head versus heart – long-term planning versus short-term gratification.

He continued: “It is interesting to delve into how the nation has changed its views over the last five years, as people's personal finances have come firmly under pressure in difficult economic times.

“It is perhaps not a surprise that these days many of us would spend a windfall on a holiday or home improvements, which we might otherwise have put off because of lack of funds.”

Those in full time work are more likely to use the money to pay off their mortgage, 25% compared with a national average of 16%, and those in part time work were more interested in home improvements.

“Those in full-time work are focusing on paying down their mortgages, perhaps because they are worried about how a lack of job security could impact their ability to pay in future, while those out of work are unsurprisingly concerned with putting some cash away to meet unexpected expenses," concluded Mr Evins.

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