Spenders versus savers

Although by now many people have given up on their New Year resolutions, this year people are still looking at their finances more closely.

New research by smilethe internet bank from The Co-operative Bank, has revealed that over the last twelve months almost two thirds of people (64%) have changed their attitude to spending.

The findings confirm the average Brit has saved £1,882 in the last year, but is planning to increase this by over 35%, saving £2,605 in the year ahead. The people who saved the most last year lived in London, followed by the North East and Scotland.

When looking in more detail at saving habits, the research highlights that holidays are the most popular item that people will save for, with just under three fifths of respondents (57%) stating they save for their breaks away. The research also reveals that almost half of people now save for Christmas (48%) and almost a third are tempted into saving to buy new cars (32%), clothes (31%) or a house deposit (30%).

However, when looking at the rationale behind not saving for new purchases, the most common excuses include the fact it takes too long (22%), people are tempted to spend any extra money on treats (24%) and some people feel it is easier just to borrow the money as opposed to saving for it (12%).

John Barker, Head of Savings at smile said: ""The research clearly shows that people are becoming much more focussed on savings. With the uncertainty in the current economic climate, the findings show that many people are now changing their behaviour and reverting to the ways of previous generations, when saving up for things was the norm".

"When looking for a place to put their savings, people should consider maximising their tax efficient savings by ensuring they have made the most of their annual ISA allowance before the 5th April deadline."

smile provides a cash ISA, with instant access available for account holders. More information is available at smile.co.uk