This year has been full of ups and downs, with little of the former and much of the latter, let’s be honest. With the ongoing pandemic and the threat of lockdowns ever present, it has definitely been unique in myriad, unexpected ways. Unfortunately, such uncertainty has led to people across the world having to reassess how they spend their money as income streams become inconsistent and job security waver.
As the final quarter of 2021 begins, BravoVoucher has released a study titled the Smart Shopper Index 2021, analysing the spending habits from 25 OECD countries to find out which country came out on top when it comes to handling their money in a smart way.
But wait, just what is a smart shopper, we hear you ask?
According to the Association of Common Research, smart shopping is defined as a “tendency for consumers to invest considerable time and effort in seeking and utilizing promotion-related information to achieve price savings”.
Anyway, the total score of each country in the Smart Shopper 2021 index was given based on their performance in household savings, household debt, purchase consideration, overall spending relative to cost of living, and food spending relative to cost. So, how did they do?
Well, France came in at the top with 421 points. Although their household debt percentage (119%) is slightly higher than the average, they seem to have the highest percentage overall when it comes to making considered purchases (93%).
Ireland ranked second with 312 points. And third were the Germans with 288 points and a significantly lower percentage of household debt (95%) than France and Ireland, which definitely impacts their overall score. They also have a higher percentage of household savings (11%) than the top two countries.
The United States of America just missed out on a top-three spot, coming in fourth with an overall score of 284. Although they have a high percentage of household debt (107%) and have an average score when it comes to purchase consideration (78%), the reason they are able to score high is because of their ability to save up and consider spending vs. costs.
The fifth spot goes to Norway with 211 points on the Smart Shopper Index. Out of the 25 countries researched, Norway had the highest scores on the cost of living index (70) and the food prices index (100) outlined in the study. With this in mind, it’s quite easy to see why the Norwegians try to engage in smart purchasing habits. That said, and although they spend a lot of money overall, the Norwegians also seem to get the most value from their cost of living.
Unfortunately, us Brits did dismally, coming 20th with a negative score of -227. As Bravo Voucher explains “Brits love a bargain, but they love to spend more. On average, Brits spend almost as much as they earn, saving just 1% of their disposable income and spending the rest”.
They continue, ”It doesn’t come as a shock to find they score poorly on overall spending habits, except when it comes to food. It seems the Brits know how to get the best value out of their meals”.
Interesting stuff, indeed, and it’s certainly apparent that us Brits have a lot to learn when it comes to being conscious of how we spend and how to plan and budget our income. With all this in mind, here’s how to be a smarter shopper.
BE PATIENT AND WAIT
If you don’t need a particular item right now, then sit back and wait for a while, particularly if it’s a newly released product or the latest piece of tech. Most products will eventually come down in price even if you have to wait a few months.
If you can stay disciplined and have a very clear idea of the type of product you want to buy, then flash sales or time limited sale sites could be worth a try. Usually, this involves signing up to a website that then sends you alerts when products become available or the price drops.
LOOK FOR PROMOTIONS & DISCOUNTS
On Bravo Voucher’s Smart Spending index, one thing Brits did well at was looking for promotions on the food delivery app UberEats. We are also the most eager to find bargains in fashion and look harder for discounts on other ‘high street’ purchases. In fact, as the Mirror reported in 2019, Brits are prouder of bargains than they are of big buys, and are more likely to show off about money saving tricks than their spending power.
So, although it’s easy to ignore those daily emails and vouchers as junk, and commit them to the spam folder or shove that physical discount voucher to the bottom of your bag along with your receipt, if you take more care with promotions, you’ll see that there are great savings to be had.
SHOP AROUND
It’s no secret that there’s a clear difference between the likes of Tesco, Morrisons, Sainsbury’s and Waitrose when compared with Aldi and Lidl in terms of price. It’s imperative, then, that you shop around and compare prices to get the best results.
The website Trolley is amazing for helping you do just that. Simply enter a product name or brand and the platform will show you a price comparison across all local supermarkets, as well as a detailed price fluctuation history and the chance to sign up for price alerts on any product from your usual supermarket shop.
PRUDENT MEAL PREP
Being prepared when it comes to grocery shopping and planning lunches for the week can help save your cash, too. Even making a shopping list before you head to the supermarket could lead to savings. In fact, 60% of people who take a shopping list to the supermarket said it saves them money, according to the Money Advice Service. This is largely because it prevents those impulse purchases which afflict us all when doing our groceries on an empty stomach.
You should also endeavour to plan your meals carefully for the week, so when you go to the shops, you’re only buying what you need. Check out these 5 IDEAL strategies for meal planning for more on that.
Other things you can do to be a smart shopper include:
- Shop at factory shops and outlet stores: Set your sights on stores like TK Maxx and Homesense for major savings.
- Buy travel tickets in advance: If you need to book a long train journey, try to book a few months beforehand. TheTrainline.com claims it can save you up to 43% on fares nationwide, if booked up to 12 weeks early.
- Buy End-of-Season Clothes: A markdown on clothing prices can always be found at the end of the season? That new winter coat you need for next year could cost half the price if you buy it in the summer sales.
THE BOTTOM LINE
So there you have it, our top tips on becoming a smarter shopper today. Now, can we get the UK to number 1 on next year’s Smart Shopper Index.