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Holidays or the home – what do your savings go on?

Holidays or the home – what do your savings go on?

Category: Savings

Updated: 25/07/2014
First Published: 25/07/2014

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This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

We all know the value of savings, but people can often have different priorities when it comes to this kind of money management – particularly between men and women.

Research published by Standard Life has found that, when asked about their financial priorities for 2014, 33% of those surveyed believed that "reducing bills and household costs" is a priority. "Saving more in general" comes close behind, a priority for 31% of respondents, showing that cost-cutting and financial awareness for the future still reigns supreme.

However, dig a little deeper and the figures show that women (34%) are more likely than men (28%) to make "saving more in general" a priority in 2014 – and they're also more likely to make home improvements a priority (21% of women cite this compared to 15% of men). Men, on the other hand, are more likely to think that a family holiday is a priority over home improvements, with 18% putting this higher on the list.

Julie Hutchison of Standard Life comments: "It's no surprise that we all prioritise differently, but it's interesting to realise that while many women could well be prioritising a trip to B&Q over a holiday in Corfu this summer, the men in their lives could well have home improvements much further down their list of priorities.

"Discussing and agreeing financial priorities is always going to be key for a couple, particularly if they don't want to end up in debt or left literally watching paint dry, when at least one of them thought they would be on holiday."

No matter what you're saving for, you want to make sure you're getting the best return from your money as possible. That's why you should always compare savings accounts to find the best rate and the terms that suit you – that way your family holiday or home improvements could be that little bit closer.

But, what about the children? Well, it seems that many are taking the sensible route and prioritising saving over spending. The Annual Pocket Money Survey from Halifax has revealed that 72% of children aged between eight and 15 are saving a proportion of their pocket money: 49% save as much as half of the money they are given, and a particularly prudent 9% save the lot. A further 32% of children surveyed would save up for something expensive that they really wanted – a good habit to get into.

This is despite the fact that the typical amount of pocket money given has actually fallen over the last year, down 2.4% from a six-year high of £6.50 in 2013 to £6.35 today. However, almost half of children surveyed (48%) are happy with the amount they receive, and think they're getting the "right amount" of pocket money.

Richard Fearon, head of Halifax Savings, says: "Pocket money is a great tool to help young people learn the value of money, and to start the habits of saving and money management early on.

"Whilst the amount of pocket money children are getting has reduced slightly, it remains encouraging that many are satisfied with the money they receive, and that so many are choosing to save the money they are given."

Encouraging the savings habit from an early age will always be a great idea, and considering that 39% of children stash their pocket money in the bank, why not see what the best rates are? Showing them that saving carefully can actually boost the amount of money they've got could well encourage them to save even more, and with rates on children's savings accounts often being better than many adult versions it could be a highly profitable choice.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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