|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    19th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Banking News feed Banking News

All Financial News feed All Financial News




Savings prioritised over luxury spending

Bookmark and Share

by David Masters
Savings prioritised over luxury spending

Britain’s attitude to saving has seen a stark turnaround since the start of the credit crisis, with most savers now shunning luxury purchases in favour of keeping money in their bank account.

In a survey by Birmingham Midshires, only one in ten (9%) confessed to raiding their savings to buy a luxury item over the last three months, compared with 39% a year ago.

Meanwhile, the average amount Brits raided from their savings in the last three months dropped 40% on year, from £506 a year ago to £302 today.

Dipping into savings to pay for a holiday is also falling in popularity, with just 12% willing to do this compared to 18% in January 2008.

However, saving for weddings and house deposits has increased in the last year.

The results indicate that Brits are cutting spending on non-essentials in order to keep savings back for essential items in case times get even more difficult.

Tim Hague, Birmingham Midshires director of savings, said: “Those who are raiding their savings are doing so for essential reasons such as emergency repairs and increased utility bills rather than spending on luxury items.”

A recent survey by Nationwide found that nearly half (46%) of Brits are regular savers.

Discuss this in the Finance Markets forums

Story link: Savings prioritised over luxury spending



News posted: February 12, 2009

Financial Services:





Related financial stories to: Savings prioritised over luxury spending:
Previous: «
Next: »

Visited 2863 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , ,