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Lloyds CEO urges automatic savings and emergency funds

Charlie Nunn recommends building an emergency fund equal to one to three months of salary, and setting money aside soon after payday through mechanisms like standing orders or round-up tools.

Reported · Written up by our desk · Fund Industry

BBC Business interviews Charlie Nunn, CEO of Lloyds Banking Group, the UK bank that provides one in four current accounts, with advice on how people can develop saving habits and better manage day to day money.

Nunn says saving should be treated as an automatic routine rather than something people defer, suggesting people move cash into savings straight after they get paid, set up standing orders, use cash “envelopes,” or use round-up tools that put spare change aside when they spend.

He also recommends keeping an emergency fund for unexpected bills, such as a broken boiler or car repairs, advising that if possible people target one to three months of salary depending on their circumstances.

Nunn further discusses financial transparency in relationships, noting he and his wife use a joint account with “complete transparency” and that he views care with money as an important relationship signal. He also flags growing challenges for younger people from online information, misinformation, and spending pressure.

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