Many people find it all too easy to spend money on their bank or credit cards, whether online shopping or using contactless machines in the shop. This is why taking cash out can a good way for a lot of people to regain control of their finances.
Instead of being able to tap a card on to a reader and not be aware of how much is spent or is left in your account, taking out any spare cash and knowing you only have that to use can really help spenders think twice before parting with their cash.
Research by money app Snoop found there has bene an increase in people using cash machines recently, in a bid to reign in their spending. Two-thirds of shoppers used a cash machine over the summer, withdrawing an average of £60 each time.
It also found shoppers typically took money out of cash machines five times between May and July 2022.
Scott Mowbray, a spokesperson for Snoop, told the Telegraph(1): “Some of our customers only feel truly in command of their finances when they can see, touch and spend physical money.”
“With prices rising as fast as they are now, and with so many people deeply worried about how they’ll cope financially, being able to get hold of real cash matters more than ever,” Mr Mowbray stated.
These findings support figures released by the Post Office(2) in August, which showed demand for cash withdrawals had increased by eight per cent between June and July.
It also revealed Post Office’s branches across the UK handled a record £3.32 billion in cash deposits and withdrawals, which is the greatest monthly amount it has handled in its 360 years.
The £801 million personal cash withdrawals from Post Office branches in July was also a 20 per cent increase from July 2021.
Martin Kearsley, banking director at the Post Office, stated: “We’re seeing more and more people increasingly reliant on cash as the tried and tested way to manage a budget.”
He commented: “Our latest figures clearly show that Britain is anything but a cashless society.”
The cost-of-living crisis has, and will, hit a lot of people in the UK hard, which is why more are trying to manage their budget, so they do not find themselves without enough cash to pay for essentials.
Despite their efforts, the Big Issue revealed(3) many children and families are sliding into “deepening poverty”, which is why many lots of have set up food banks to help those who cannot afford to buy food.
Dr Will Baker, a researcher at the University of Bristol, told the publication: “Schools are on the frontline of the cost-of-living crisis. The spread of school-based food banks reflects a growing level of poverty, destitution and food insecurity.”
Almost ten million people in the UK are living in food insecurity, with more than a quarter of these being children.
As a result of soaring energy prices, another 1.3 million face poverty over the winter months, forcing many to choose whether to keep their children fed or warm.
If you are struggling with debt as a result of the cost of living challenges talk to us about debt solutions in the UK. For more information, call us today(4).
Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.