Average weekly household spending rose to £554.20 in the financial year ending 2017; in real terms, a return to pre-economic downturn levels, according to the ONS.

“While there was a slight rise to overall household spending, families are still having to tighten their belts,” Foresters Friendly Society chief executive Paul Osborn said.

“This means all too often, very little is left over for the important long-term savings goals. Taking advantage of the variety of savings products available can really maximise your finances, but it’s important to match your savings goals and habits to the right product.”

Moneyhub CEO Samantha Seaton said: “Over the last year household finances have been squeezed left, right and centre, with the price of food, transport, bills, and our other everyday essentials all going up. With real term wages falling, people are increasingly reliant on debt to help them cover the cost of living. The latest report by the IFS shows that one in ten households has more than £10,000 of unsecured debt, whether it’s through loans, credit cards, or finance agreements.

“Technology has transformed the way we interact with our money. But with so many things to juggle, it can be really hard to keep track of all your outgoings and see where savings or cutbacks can be made. By using a digital financial management tool, you can manage your finances in one place. This not only makes saving easier, but also peace of mind much more achievable. Having greater financial wellbeing is one of the most common New Year resolutions, so this month is a great time to take control.”

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