Couples with separate finances miss out on savings

Households in the UK could be saving up to £350 a year by merging their finances, according to new research by Aviva.

The study, which surveyed 2,000 UK adults, found that 57 per cent of all households were missing out on the savings by not consolidating their money with family discounted products.

Participants were asked about their circumstances and finances and found that couples who are living together without any children are the least likely group to make use of multi-person policies – only 27 per cent of couples take advantage of the many discounts available.

Multi-person policies and services appear in many different areas. For example, households with more than one car can make large savings using multi-car insurance providers. Mobile phone contracts may also generate savings as do family railcards.

These policies can create savings of up to 30 per cent and couples who are not taking up the offers are simply missing out.

Marriage leads to more awareness

It appears that big life events are causing people to address their financial situation as they begin to seek out some multi-person savings to help with daily living expenses. Married respondents were much more likely to take advantage of the savings. Some 44 per cent of those who were married without children said they did, while this figure rose to 46 per cent for those with children.

The research showed that the largest savings available on a multi-person policy are family railcards, which can save families up to £99 a year and car and van insurance, with savings averaging £84 a year.

Of all the areas where group discounting is available, it appears people are least aware of mobile phone contracts and sports memberships, with only 22 per cent and 29 per cent revealing they took advantage of these offers respectively.

Joint-breakdown cover can also save households around £14 per year, which is a fair amount considering the average yearly spend on this is £108.

Director of marketing at Aviva Heather Smith said: "At a time when many families are feeling the squeeze, reviewing finances across the household and consolidating spending to make the most of multi-person discounts could be a simple and effective way to save money."

Savings "make a real difference"

One married couple who took part in the survey was Darren and Emma Whitlock. They have two children and are reaping the benefits of the multi-person savings by merging their finances together. The couple were able to generate a whole range of savings thanks to taking up schemes such as joint insurance policies and mobile phone contracts.

Mr Whitlock said: "The savings we make on an annual basis make a real difference, meaning that we can have more flexibility in what we spend on our children and on our home. Any extra we manage to save goes into our joint savings account as well."

With individuals currently struggling to keep on top of finances, many are finding themselves falling into debt. It is important to make savings wherever possible so that money can be put towards becoming debt free.

By James Francis