Figuring out where your money is going is the first step for anyone putting together a budget and a great place to start if you’re revising a current budget that isn’t working.
The Office for National Statistics has released a breakdown of family spending in the UK in 2018, 2019 and 2020 that can be used as a template for your personal financial plan.
On average, UK households spend £ 588 per week (£ 2,548 per month) on living expenses, including a roof over your head, food, clothing and transportation to and from work or school. However, the cost is higher if you have a rent or an apartment mortgage.
The comparison across all regions of the UK allows consumers to gauge their own budget to see if they might be overpowering the essentials of the household or if this bargain hunt is paying off.
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Find out if you are spending below average on major household items
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thinkmoney.co.uk, a personal finance website, recommends breaking a household budget into realistic amounts by dividing your monthly income across your expenses as follows:
- Rent / mortgage – 35%
- Utilities – 5%
- Transport – 15%
- Food – 5%
- Debt Settlement and Savings – 10%
- Spending – 30%
Adjust the amounts to suit your circumstances and remember that you should always pay more than the minimum repayment amount on your debt.
According to thinkmoney.co.uk, rent in the UK averages around 31.1% of a person’s salary, but in Scotland it drops to 27%.
Here is a breakdown of the spending per household
Depending on where you live, your stage of life and your financial situation, you can also spend additional money on education, health and weekly groceries.
This data comes from the ONS 2020 Family Spending in the UK Review and includes food and drink consumed at home but excludes food and drink outside of the home, household cleaning items, toiletries and medication.
Food and soft drinks
The average household in the UK spends £ 63.70 a week on groceries and soft drinks, while Scotland spends an average of £ 57.60.
That’s £ 3,312 a year for food, milk and soft drinks.
This doesn’t necessarily mean that groceries will cost more or less in different areas, but if you live in Scotland and your average shop is £ 65 a month you can save.
All in all, food and beverages use 19% of our total annual budget, and food prices in the UK have increased about 2% a year.
We also spend more on some products than others and are a country that loves carbohydrates.
Bread, cookies, pasta and rice add up to a total of £ 10.40 a month.
We spend more on sausage and other processed meats than anything else, while some products cost us less because they are reasonably priced – eggs, tea, and coffee, for example.
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Transport
Transportation costs were among the highest weekly expenses, with the UK averaging £ 82.60 per week and Scotland £ 75.30.
This money is mainly spent on buses, trains, subway and international flights, but also includes insurance, the purchase of vehicles, gasoline or diesel, and vehicle costs.
communication
Communication was another high-spending area, with the average household in Scotland spending £ 19.30 a week.
This means you can spend more than average if you spend more than £ 77.20 a month on phone contracts or other communication devices.
Alcoholic drinks
According to the data, Scots spend £ 14.90 a week on alcoholic beverages, tobacco and narcotics, while the average south of the border in northeast England is £ 13.40.
Look at the average for the whole of the UK and that number drops even further to £ 12.80 a week.
A minimum unit price of 50p each was introduced in Scotland on May 1, 2018, which could explain the above-average spending.
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health
Scots spend the least amount of money on health, with only £ 6 a week being spent on gyms and fitness activities.
The North East and North West of England spend just £ 5.30 a month and those in the South East of England spend an average of £ 10.20 a week on health.
education
In Scotland we spend one of the lowest amounts on education at just £ 2.30 a week per household
The UK average is £ 6.30 but £ 16.70 in London and £ 1.60 in the North East.
Housing, fuel and electricity
This is another area where expected spending will be significant, but on average the UK household spends £ 79.50 a week.
That’s around £ 318 a month, but that figure drops to around £ 262.80 a month for Scots.
clothes and shoes
Across the UK, the average spend is between £ 20 and £ 30 a week.
The figure is highest in Northern Ireland at £ 30 and in Scotland it drops to £ 23.90.
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It is important to note that the average house in Scotland is rated for 2.2 people to live in it. So if you have a large family, your monthly expenses may be higher.
This data comes from the ONS 2020 Family Spending in the UK Review and includes food and drink consumed at home but excludes food and drink outside of the home, household cleaning items, toiletries and medication.
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