A recent UK wide survey conducted by merchant service provider Paymentsense has revealed that 45.5 million UK residents have less than one month's salary set aside in savings.
In addition to this, the study also found that 30 percent of Britons do not in fact have any money set aside in a savings account, to protect us from unforeseen circumstances.
It also seems that many may in fact be leaning on credit cards to keep us in the black, with over 66 percent of survey respondents admitting that they owned one or more credit cards and a staggering 79 percent of those credit card owners confirming that they use these cards as a means to backup expenses.
For those with savings, the new findings showed that 21 percent make a holiday their top priority.
The percentages were lower when it came to long-term saving goals – like buying a house (10 percent) and retirement (17 percent). Just nine percent of people save for their children's’ futures, which might include education fees or deposit for a first home.
Top things people save for:
1. Holidays (21 percent)
2. Retirement (17 percent)
3. Personal expenses (15 percent)
4. Family reasons (14 percent)
5. To buy a house (10 percent)
6. For my childrens’ future (nine percent)
7. To buy a car (eight percent)
8. Other (six percent)
Paymentsense also asked respondents a little more about their relationship with money from childhood through to adults, to find out whether parental advice and guidance had affected their attitudes and management of money today.
It found that as children, 32 percent of Britons were always taught never to spend more that they earn and a further 23 percent were taught to first take care of commitments and bills. Only 12 percent were taught to save a small portion of earnings.
It would also seem that as a nation the UK is actually fairly relaxed about money despite the impact that rising interest rates may have. Only 55 percent of respondents felt concerned about how these increases may affect monthly outgoings and of the 60 percent who do have any savings, 21 percent admitted to spending these hard earned investments on annual holidays.
A spokesperson frim Paymentsense commented: “There’s no denying it - it’s harder to save now than it’s ever been and as a result many of us are falling back on credit cards and loans to keep ourselves in the black. With many of us reflecting on our childhoods and wishing we had taken heed more around advice to budget more, refrain from buying things we can’t afford and save more, maybe it’s time to reflect on the size of our rainy day fund and top it up a little.”
|RATE THIS ARTICLE|
THIS WEEK'S TOP STORIES
PAM (Private Asset Managers) and its sister website PAMonline combine to provide "...the best guide available to the leading firms in private client fund management" (FINANCIAL TIMES). PAM compares managers on a level playing field by key data such as fees and charges, minimum investment thresholds and so on.