Savings focus shifts to household bills
The latest Moneymood survey from Legal & General shows a shift in focus among savers towards short-term needs, such as putting petrol in the car to get to work.
According to the research, the top two reasons for saving remain unchanged from last year, with saving for a rainy day a top priority (66%), followed by saving for a holiday (57%).
However, the 2012 figures suggests a rise in the need to save for household essentials as follows:
Home improvements or decorating 2012:50% (2011:35%).
Household bills 2012:49% (2011:33%).
Petrol/fares to work 2012:26% (2011:13%).
Paying off credit card debt 2012:21% (2011:12%).
New clothes 2012:30% (2011:20%).
Commenting on the findings, L&G’s executive director savings, Mark Gregory, says: “The focus of saving has shown a significant shift to managing the household bills as people continue to struggle against the rising costs of utilities and fuel with little expectation of an increase in income to help soften the blow.”
He adds: “Our latest figures indicate that very few people (only 7%) expect their household earnings to go up faster than inflation this year and even fewer (3%) expect their savings to match inflation.”
The study also found that year-on-year, the number of people who say they’re in a saving mood has levelled at 69%, but the number of women warmed up to the idea of saving has increased to 72% (2011:67%) whereas interest from men has waned slightly to 66% (2011:70%).
Category: Banking News, Savings & Investment News
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