4 April 2011

Young Savinbg More for a Rainy Day

Ambitious 20-somethings are saving more than previous generations due to the current economic climate, a new study reveals.

Ambitious 20-somethings are saving more than previous generations due to the current economic climate, a new study reveals.

These youngsters are saving almost a fifth of their monthly salary for specific goals, Barclays' research shows.

Almost a third of the 20-29 year olds questioned are thinking ahead, saving on average £258 a month, or 17.7 percent of their monthly salary for life goals they intend on achieving over the next 10 years.

Eight three percent say their generation needs to get better at saving due to the current economic climate making it more necessary.

"It is great that we are witnessing this generation shift, with 20-somethings taking a serious approach to saving,” said Andy Gray, Barclays' head of savings.

"At a time when every penny counts, we encourage people to take full advantage of the various savings options available to them from instant access accounts to fixed rate bonds and ISAs.”

Barclays' savers in this age group currently have a £1,900 average savings balance.

By the time this group of young savers reaches the age of 30, 35 percent hope they will have purchased their first home, while 23 percent want to be on the second rung of the property ladder.

A further twenty three percent of this group are married, and 43 percent want to be by the age of 30.

Saving in the Current Economic Climate

Having adequate savings tucked away has never been more important due to rising inflation and unemployment.

Credit Action is warning families and individuals to be prepared for the Government's welfare changes which are to come into effect on 6th April.

A total of 49 major reforms will be experienced this week, including increases on Alcohol and Tobacco Duty.

The average household is already £480 worse off following the indirect taxation that took effect in January, according to the Institute for Fiscal Studies. With families to be expected to be £200 worse off after April's tax and welfare benefit changes.

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