Young people dismiss savings for spending

Thursday, November 24, 2005

Young people's attitudes to savings have changed, according to new research from Alliance and Leicester Savings & Investments.

The younger generations now predominantly live in the "can't go without" mindset as opposed to a more frugal frame of mind as characterised by previous generations.

"Times have changed and with the passing of phrases like 'waste not, want not' and 'money doesn't grow on trees', attitudes towards spending and saving are also different," said Mike Woodward, manager for savings at Alliance and Leicester.

"Perceptions of what we need to buy versus what we could cut back on have been influenced by our busy working lives and a sense of urgency and immediacy that is compounded by the growing use of phrases like 'you only live once'."

And this culture of buying treats and using taxis rather than public transport is having a detrimental effect on the savings of 20-somethings.

However, many are unwilling to cutback to improve the balance of their bank or savings accounts, with 22 per cent claiming they will not consider curbing spending.

In related news, NatWest has revealed that Britain's 11-18 year olds have savings worth a combined total of £107 million.

Get some help finding the right savings account here:
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