Brits feel optimistic about their finances for the New Year

• 39% of Brits say they will have more control of their finances in 2025
• Two fifths (38%) have boosted their savings in the last six months, by an average of £1,572
• Over a third think they will make better financial decisions in the new year

The new year brings a growing optimism for Brits and their financial position, with 39% resolving to be more in control of their short and long term finances in 2025, up from 34% in 2023.

Younger generations are spearheading this with nearly three in five (58%) 18-34 year olds determined to be in control of their finances in the coming year.

This ambition could well be driven by the increase in savings that some people have seen in the last six months. Nearly two fifths (38%) of Brits have bolstered their savings in the last 6 months, stashing away an average of £1,572.

Being in control financially goes hand in hand with wellbeing, as 33% of people think they’ll be empowered by their financial position in 2025 and 36% believe they’ll be able to make better financial decisions, up from 32% the previous year.

Money goals and savings will also be a hot topic in 2025, with 33% of people thinking they’ll be more confident talking about the financial goals they have, jumping to 53% amongst young savers.

Chris Henderson, Savings and Payments Director at Tesco Bank, comments: “The start of 2025 is the perfect time to get yourself in the best financial shape. But it’s important to remember it’s never too late, or too early, to start building towards your goals. Setting them is the first step, large or small, so think about what you want your money to do for you. From here you can start to work towards your goals, building good savings habits along the way, and begin to see your money grow.”

Chris shares his top tips on managing your finances and getting in the best financial shape in 2025.

1. Budget, Budget, Budget

Budgeting is perhaps the number one rule when it comes to managing your money. Plan how much you’d like to spend per month on weekly essentials, entertainment, or ‘nice-to-haves’, and pop it all into a planner. You can jot this down on paper or use one of the many apps out there to help you. And if you want, let people know your plans. As many as one in ten (11%) people have used ‘loud budgeting’ – a trend where people openly discuss their finances and say “no” to purchases or events they can’t afford or don’t want to spend money on – and say it has helped with their money management.

2. Identify what cutbacks you can make

Set some time aside to review your spending during the past year and think about where you can make savings. For example, are you on the best possible rates for mortgage payments and energy bills? Do you have any subscriptions you don’t really use or have forgotten about? It’s worth looking at where your money is going and keeping an eye out for anything you can comfortably do without, even if it’s just for the short term.

3. Be wary of the new year sales

Many retailers have new year sales and it can be all too tempting to purchase items that you otherwise wouldn’t have bought. The festive period can be an expensive one, so it’s important to ensure any spending fits with the budget you have set yourself.

4. Ringfence money

Make it a priority to get your essentials in order before all else. Create spending pots that will cover things like your weekly food shop, rent or mortgage or household bills and aim to keep that money untouched. If you set this money aside first, you can then ringfence for other spending and savings, safe in the knowledge that the necessities are taken care of.

5. Set your goals

Nearly two in five (38%) people don’t have set savings goals. It can make it a little harder to put money away if you’re not saving for anything in particular. Spend some time thinking about the things you want to achieve in 2025. This might be on your own, but it could be with your partner or even with friends so make sure you involve them too. These don’t need to be big financial commitments. Achievable goals are more motivating – it might be adding a little extra to your savings at the start of each month, starting to save for your children’s future, managing your debt or building an emergency spending pot. Set yourself a target, work out how you will get there and make a head start if you can.

6. Look after the pennies and the pounds will take care of themselves

It’s hard to imagine small amounts of money will add up to anything, but over time this pile can really add up. Saving what you can afford, no matter how big or small, is a great habit to form. You could even start with a family penny saving challenge, putting away 1p on day one, 2p the next day, 3p the day after and so on. After a year, this could add up to a total of £667.95! You can earn even more by setting this aside in a savings account, where interest can bulk up your pot.