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Consumers fail to learn lessons from recession

Consumers fail to learn lessons from recession

Category: Money

Updated: 06/04/2010
First Published: 06/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The majority of Britons have not allowed the recession to stop them making life changing plans, but three in five have failed to learn any financial lessons from the downturn, a new survey has revealed.

Research conducted by Clydesdale and Yorkshire Banks found that those in their 70s who have lived through previous recessions have already changed their financial ways, with less than a quarter (23 per cent) saying they had learnt any lessons from the financial crisis.

By contrast, almost half of respondents in their 20s and 30s said they had learnt valuable financial lessons because of the recession.

The research also found that more than four in five (81 per cent) consumers haven't let the downturn affect their plans for the year ahead, such as getting married, planning a family or starting a new business.

Even costly events like travelling the world are not being put on hold, with people choosing to plough on with their plans, despite worries over money.

For the minority of Britons who have changed their plans because of the recession, putting a house move on hold was the most common reason for doing so, with the younger generation being most likely to do so.

It was found that more than four in ten consumers in their 20s had delayed or cancelled plans to move home because of the recession.

It is hoped the exemption on stamp duty for first time buyers on properties worth up to £250,000 may reverse this trend.

"The fact people have pressed on with plans for big 'life events' such as weddings or having a baby, probably suggests good financial planning, as these events generally allow for a fairly long planning phase," Steve Reid, retail director, Clydesdale and Yorkshire Banks, said.

"But we see a bigger impact on the more general spending and luxury purchases, where the money is coming from a monthly salary.

"This is a good financial lesson in itself; by saving regularly you can build that nest egg for any occasion - particularly those smaller events or unplanned occurrences that can be financially painful. If nothing else, we should all see the benefit of having a financial cushion to fall back on."

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