Saving Habits Cemented in Youth

03-September-2008, Writes Dan Drage dan.drage@consumerchoices.co.uk

Teach your child how to save and they will carry it through to adulthood. That’s the message from Nationwide.

A recent survey conducted by the Nationwide (www.nationwide.co.uk) building society suggests good savings habits can be learned during infancy. Just over half (56%) of consumers questioned saved as a child and, of those that did, 71% save regularly now.

This is over one and a half times the number of consumers who didn't save as a child, saving regularly now (45%). Also, nine out of ten (92%) former child savers think their savings habits helped them to appreciate the value of money.

Seven out of ten (69%) non-child savers admit to not appreciating the value of money now.

Matthew Carter, director for savings at Nationwide, has the following to say:

“Starting the savings habit young is important and clearly influences consumers' propensity to save in later life. Habits die hard, and this research shows that those who learnt the value of money and how to save effectively at a young age, are more likely to continue to do so in adulthood”

He continues:

“It's heartening that so many people will encourage their children to save, even if they didn't save as a child because, with the current economic situation getting tougher, it's never been more important to put money aside for that rainy day.”

Just over half (53%) of consumers who saved as a child did so primarily to afford the things they wanted to buy, with a further 27% citing their parents as the reason why they saved. 84% of former child savers have encouraged, or intend to encourage, their children to save.

Chris Eagle, Commercial Manager at CreditChoices.co.uk, has the lowdown on the best savings accounts:

“Both Icici Bank (www.icicibank.co.uk) and Alliance & Leicester (www.alliance-leicester.co.uk) are currently offering 7.2% and 6.5% AER paying savings accounts respectively. Capital One (www.capitalonesavings.co.uk) additionally offer an online savings account that pays an impressive 6.3% AER.”