The first set of data comes from a survey of 532 parents surveyed in Jan 2023, produced in conjunction with our partner Peekator:

Cost of Living – Overall Impact

Single parents have been hardest hit by the cost-of-living crisis, with more than half (52%) saying the economy has had ‘a significant impact on their life and finances.’ The contrast is quite sharp with almost the same number (49%) of dual income parents saying it has only ‘slightly impacted them.’

Even if the gravity of cost-of-living’s impact is uneven, most have been affected to some degree. Two-thirds of parents (66%) overall say they have cut back on spending to combat the rising cost of living, and 55% saying they are trying to save when and where they can.

Spending

We’ve written separately on cost of living’s impact on travel, explaining how and why ‘holidays are a non-negotiable purchase.’ So, even if those trips may be cheaper, their overall number doesn’t seem to have reduced.

The only question remains, where else are parents making savings? For two-thirds (67%), it’s in eating out, and for slightly fewer, entertainment and luxuries (60% and 59% respectively). Interestingly, among the highest earners, mothers are more likely to cut back on eating out (72%), while for fathers, luxuries top the list (66%).

When it comes to spending on children, 41% understandably say they have spent less on gifts year-on-year. It is also notable however that 20% have, despite cost pressures, still spent more. Could this be because of inflation, as parents try to offer children the same as before? Or are a fifth of parents actively prioritising gifts at the expense of other spending?

On a slightly more positive note, in terms of business, more than a third (36%) of parents are planning to purchase home and furniture items, choosing to budget their income for large purchases. However, when considering financial products, only 11% of respondents said they expect to buy financial products such as stocks and shares – possibly reflecting either the growth of alternative forms of investment, or simply that parents don’t have the money to put into savings.

67% of parents say that they have some cash or savings put away for emergencies, also down, 4% on 2021. On a more positive note, the number of parents with a pension was up 4% over the same period, reaching a total of 47% of the overall group. Finally, parents are 25% more likely to have annuity investments such as mortgage, insurance or pension payments compared to the general UK population.

Automotive

Almost half of parents (45%) say that price is the biggest factor they consider when purchasing a car, with only 19% by comparison choosing space inside the car, and a similar number (18%) picking child-friendliness.

When it comes to single parents, dads put more emphasis on price as a primary consideration (56%), while for mums the same option scored under 50%.

Perhaps unsurprisingly, single dads favour technology – with 14% selecting it as a priority, second only to pricing. Single mums chose space inside the car as their second favourite option (15%).

To give a general idea of the ownership of the respondents, more than a quarter (26%) were Ford owners, 15% owned Audis, and a similar number (14%) said they own a Nissan.

By having a deeper understanding of intents in which parents overindex in and their purchasing habits, we’re able to intercept the right live intents at the right time.