The current economic climate has brought Britain's finances into sharp focus, marking the end of the ‘buy now, pay later' culture, but despite gathering economic gloom almost two in five Brits (37%) are saving less, according to a new report by Lloyds TSB Consumer Banking.
The report reveals the nation's savings and spending habits, debt levels and tests Briton's overall financial know-how.
The in-depth study, of over 5,000 adults, shows a distinct change in financial behaviour as the credit crunch bites. But whilst spending levels have been curbed, the current financial crisis has hit consumer's appetite to save at a time when a cash reserve is vital.
Declining debt
The report reveals a third of people have changed their spending habits in the last six months and spent less to cope with the credit crunch, with almost 40% of under 35s reporting that they have been cutting back.
People have also reassessed their finances, with over half (55%) of
Savings slump
But, almost two in five (37%) are saving less, particularly the older age group; with 43% of 45-54 year olds currently neglecting their savings. While the younger generation are bucking this trend, with almost a third (32%) of under 25s currently putting more money to one side. But when it comes to long term savings, almost three quarters (74%) of under 25s do not have a pension and are not saving enough to secure their future.
Worryingly, one in five people have less than £500 in their savings, with four out of ten families having less than £500 available to them should disaster strike, making many consumers vulnerable to financial difficulty during these uncertain times.
The report also reveals a significant number of consumers who do not have any savings, with over four million yet to get on the savings ladder. More than one in three do not save on a regular basis, with over of half (57%) of these saying this is down to a lack of spare cash.
Date: 14th, October, 2008
Author: Malcolm Gerrard
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