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News release
Wednesday 2 March 2005
SAVING IS BACK IN FASHION
A desire to have more fun, a better quality of life and some hard earned time off has put Britons back in the mood for saving.
New research by Skipton Building Society has revealed what it believes to be a radical shift in attitudes towards finances, with nearly one in two (46%) saving an average of £146 a month – or nearly £2 billion 1 across the UK.
And debt could even become a thing of the past, with more than a third of people – 39% - putting by more money than they did three years ago.
The opportunity to wave goodbye to the workplace is proving to be a strong incentive to save the pennies. The survey reveals that 16% of us are saving for an early retirement and one in ten (13%) put money aside for more time off work, such as sabbaticals.
For many thrifty savers it’s been necessary to make significant life changes in order to bolster their reserve funds. Nearly one in 10 (9%) have postponed having children, 8% have put off getting married, and 10% have forfeited living in a decent area.
Getting the most out of life is one of the main drivers for setting aside cash – 31% said that saving will help them do all things they dream of and a further third (33%) think it will lead to more fun in later life.
Jennifer Holloway, Skipton Building Society spokesperson, said: “It's good to see that thrift is back in fashion - instead of the mantra 'spend, spend, spend', the UK is replacing it with 'save, save, save'. No-one can deny it is sensible to prepare for your future, but many can be daunted by getting started: How much do I need to save? How will I ever manage to build up the amount I need?
"Although the general rule is to aim to save 10% of your take home pay, the main message is that every penny helps, so start saving today and get back in fashion.”
Skipton has provided the following guidance for people who want to save:
- Set up a monthly standing order to take the money from your current account to your chosen savings account as soon as you get paid.
- Start saving today – even a small amount every month can add up.
- When choosing a savings account make sure you consider the following:
Attitude to risk – a regular savings account will give you a small, but definite amount of interest over a period of time. An equity account may be higher risk, but you could get a better return on your money.
Access to the money – Decide whether you want to put your money away for a long period of time (eg a three year bond with no access). Alternatively, if you want instant access to your savings, you can put it in a regular savings account.
- Avoid spending money on credit cards unless you can afford to clear the balance every month.
ENDS
Editor’s Notes
- There are 28.52 million workers in the UK . 46% of people save on average £146 per month. 46% of 28.52 million = 13.1million x £146 = £1,913 million
- The research was undertaken by Tickbox.net in February 2005 amongst a sample group of 2,088 people
For further information journalists should contact the Skipton Press Office.