Survey points to saving

Four out of ten people say they save money before they buy something they really want, rather than using credit.

09:16 24 June 2004

New research shows that four out of ten people (43 per cent) say they save money before they buy something they really want, rather than simply buying on credit.

This is according to the latest findings from Alliance & Leicester's Wealth Tracker Index.

People in the survey were asked what prompted them to save, and financial security was the number one reason, with 57 per cent of people saying they were motivated by saving to secure their financial future.

The product manager for investments at Alliance & Leicester, Sarah Ennion, commented: "It is good to see that people save for something they really want. Even if you can't manage to save the whole amount, having a substantial deposit for something like a new car could help you get a better deal."

She continued: "It is also encouraging that people are considering their long-term financial security and building nest eggs for their future."

Unemployment may be at its lowest level in decades, but people are still cautious, with 11 per cent claiming job uncertainty triggers them to save.

A lower than expected bank statements prompts seven per cent to save while three per cent start to save when they feel guilty about their spending.

Keeping up with the Jones's and having the same things as their friends pushes two per cent of those asked to save.

Londoners are currently the most concerned about their future security, with almost three quarters (72 per cent) claiming this drives them to save.

At the other end of the scale are people in the North of England, who are the least concerned for future security, with 40 per cent stating this triggers them to save.