Finders keepers: Generosity lessens as people feel the pinch

A cash strapped British public are becoming a nation of ‘finders keepers' when it comes to stumbling upon a ‘windfall' on the street, according to research from Alliance & Leicester Current Accounts.

The research reveals that, although six in 10 people believe that their money will buy them more than a year ago, the financial squeeze is testing generosity levels. Half the general public (47 per cent) would now keep £100 in cash for themselves if they found it on the street rather than hand it in to police - a 13% rise from a year ago - and only one in 20 would give the money to charity. More than half (56%) said they would feel no guilt in holding onto the money themselves.

Andy Muddimer, Current Account Manager at Alliance & Leicester, which is currently offering new customers £100 for opening either its Premier and Premier 50 accounts comments, "With the impact of the usual Christmas spending spree, combined with the now-prolonged effects of the credit crunch, many are now feeling even more strapped for cash than usual at this time of year. So despite the majority of us feeling that our cash will go further, the effect on people's spending habits and attitude to money is very different to this time last year."

When asked their favourite way to spend a £100 windfall, the largest proportion (20%) of Brits said they would spend it on their family. In hard times most are looking for ways to cheer themselves up, with a further 18% choosing to spend it on a meal out.

Overall the value of £100 has shot up in people's estimation. Six in ten (58%) of people expect that £100 in cash will buy them more in 2009 than it did in 2008. People believe they are now getting better value for money with shops slashing their prices (28%), supermarkets offering cheaper goods (18%) and the benefits of the VAT cut (10%).

Andy Muddimer continues, "It is good to see that the majority of people believe they are getting better value for money in 2009 compared to 2008. It is vital that people spend their money wisely in the current economic climate, to budget their incomes and outgoings and as part of that ensure they have a current account which makes their money work hard for them with a high in-credit interest rate."