Why now’s the time to look at your budget

As the US-Israel war with Iran continues, many of us will be worrying what it could mean for our household bills.

The conflict has, predictably, led to global oil prices surging, with the benchmark oil price passing $100 a barrel for the first time in four years.

And while prime minister Sir Keir Starmer has sought to reassure people, he’s also conceded that “the longer this goes on, the more likely the potential for an impact on our economy, impact into the lives and households of everybody and every business”.

So it’s really important, especially now, to make sure you’re on top of your household budget and able to keep up with essential expenses.

More Brits budgeting for 2026

More than half of UK adults - 51% - have a budget for the year, according to YouGov.

That’s up from 46% in 2025. 

And encouragingly, budgeting is particularly common among younger adults.

Figures show that 58% of 18 to 24-year-olds have a budget, along with 57% of 25 to 34-year-olds.

That compares with 45% of people aged 55 and over.

YouGov also found that women are more likely to budget than men, with 55% saying they have a plan for their finances, compared with 47% of men.

Work out where you can save money

Nevertheless, the YouGov figures show that two in five UK adults (40%) don’t have a budget for 2026.

If you’re one of those people, check out our guide on how to create a budget to help you get started.

And try our handy budget planner - it’s free and easy to use.

Creating a budget is a great way to work out where you can make savings, and identity those expensive habits that are costing you money.

For instance, you might be:

• paying for subscriptions you’ve forgotten about or don’t use
• paying over the odds for utilities like broadband when you could get a better deal elsewhere
• forking out for small but regular expenses, like a daily coffee

Once you know where your money is going, you’ll be better able to: 

• avoid overspending
• free up money for savings and essential expenses
• not have to rely on credit
• prepare for unexpected costs without panic

Households want to cover essential costs

Ultimately, budgeting helps to give you a sense of certainty that you’ve got the basics covered.

Among those with a budget in place, nearly two-thirds (61%) say they want to ensure they have enough money for essentials like food, rent and bills.

And many say they’re aiming to:

• increase their savings - 43%
• stop overspending - 41%
• save for something specific, like a car, holiday or house deposit - 34%
• manage debt - 17%

Once you’ve worked out what your priorities are, you can design your budget with them firmly in mind.