Prepaid Cards Can Help Limit Impulsive Spending
Britain is a nation of ‘impulsive’ shoppers, a new study reveals, with many throwing away £2,256 annually by failing to plan ahead on purchases. Find out how prepaid cards can help with your budgeting.
To prevent overspending and help keep a strict eye over budgeting on everyday items, Brits could load their money onto a prepaid card.
Last minute spending on everyday items, First Direct claims, adds up to a huge £43 a week.
Of the 1,000 adults surveyed, 71 percent admitted they do not plan ahead on spending and realise they have paid too much for items as a result.
Women were shown to be the worst offenders as 74 percent said they spend in this way compared to 68 percent of men.
Women’s wardrobes were partly responsible for the difference as most admit to not thinking about what they are going to wear on a big night out until the day of the big event, resulting in 28 percent buying an outfit at the last minute. Unsurprisingly, 26 percent admitted they spent too much as a result, too.
“By failing to plan ahead Britons are needlessly throwing away their hard earned cash that could otherwise be used to add to their savings pot,” said Richard Brown, First Direct’s senior savings product manager.
“With rising inflation and VAT set to rise in January, it is more important than ever that people take advantage of potential savings.”
Adults over the age of 45 are the worst at impulsive shopping, with 76 percent of this age group admitting to doing so.
Air and rail tickets were found to be the items Brits were most likely to waste money on, amounting to £988.45 wasted from not shopping around.
A further £445.81 is wasted on groceries, £334.92 on theatre and cinema tickets, £280.00 on insurance, £172.57 on petrol, and £33.53 on electrical goods.
Prepaid cards UK prevent users going over their financial limit and so help aid budgeting.
Once money has been loaded onto the card it can be used to purchase items in shops and at ATMs to retrieve cash.