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Youngsters leave parents lagging in savings stakes

Youngsters leave parents lagging in savings stakes

Category: Savings

Updated: 25/01/2011
First Published: 25/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Saving savvy teenagers and twenty somethings are putting their parents to shame when it comes to financial management.

While one in five savers in their twenties and nearly one in four in their late teens aim to save up to £3,000 a year, just one in seven in their fifties look to save the same amount, according to Lloyds TSB Savings.

A more determined attitude towards keeping finances on track was also revealed amongst the younger generation, where around one in five claimed to regularly put money away into a savings account a few times a month, firmly putting in the shade the one in ten of those in their forties.

"It is as if the saving gene has skipped the flower power generation and the baby boom generation want to, or have been frightened into, taking charge of their financial lives now," said Mo Shapiro, a life coach.

"From a psychological perspective it is important to have a goal to work towards, whether this is in terms of your finances, your work or your relationships.

"The teens and twenties in this survey are demonstrating success behaviour by having a defined sum that they want to save each year and going for it.

"It's also good news because a regular savings habit developed early in life becomes part of an ongoing budgeting regime and is therefore not considered an imposed chore or burden."

Whether you're young or old, it's never too late or early to start saving.

Introductory bonus accounts offer a higher initial rate in the form of a bonus on the account. This is usually for a fixed term and you should review the account when the bonus expires, or at the beginning of the notice period, if this has to be given for penalty free withdrawals.

The bonus will be fixed, but the underlying rate is variable so you should keep an eye on the rate being paid throughout the term of the account.

Amongst the leading introductory bonus accounts available today is an account from Alliance & Leicester currently paying 2.81%. An account from Egg paying 2.75% and one from Birmingham Midshires paying 2.75% are well worth a look too.

Find the best savings rates - Compare savings accounts

Download FREE Child Savings Plan brochures

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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