A new report published by Toynbee Hall looks at the informal savings habits of low income households. The report finds that low income households employ various informal financial savings techniques that help them to be more financially resilient, particularly with budgeting and preparing for unforeseen expenses. In this report Toynbee Hall has created a brand new typology of low income savers, calls for the development of new partnerships between debt advice agencies, financial service providers and FinTech start-ups, and the design of a brand new financial support programme. This research helps to dispel the myth that low income households do not have savings methods or personal techniques for financial resilience, but find that these methods are often overpowered by other external pressures like low wages or the rising cost of living.
Report summary can be found here.
Report author: Carl Packman, Research and Good Practice Manager at Toynbee Hall