Home, heirs and happiness - the way to get Britain saving
When it comes to getting people saving, Brits seem to be motivated by three major factors, their homes, heirs and happiness. New research by Skipton Building Society shows that deposits for a new home feature top of the list of biggest savings funds - with on average over £77k held in savings accounts for that specific purpose.
And it seems that putting away money for loved ones is also important, with the lucky heirs in line to get over £42k from people saving to leave an inheritance. But not everything Brits are saving for is as tangible - on average £30k is stacked up by people simply saving for ‘happiness', which is more than enough to make anyone smile off a rainy day.
Skipton's research shows that there are also a number of slightly more unusual causes people save for. ‘Running away' funds are amassing over £21k on average, enough to cover the cost of several round the world tickets! While not the most common savings goal, beer lovers have almost £9k specifically set aside to cover their love of the amber nectar, allowing for in excess of 4,000 pints each! Shopaholics are also doing well and are able to buy over 14 Mulberry Bayswater handbags from the average £9k saved in their ‘shopping' funds.
Top 20 things Brits save for:
Deposit: average balance £77k
Inheritance: average balance £42k
House / home: average balance £31k
Happiness: average balance £30k
Cash: average balance £27k
Care home: average balance £26k
Retirement / pensions / old age: average balance £25k
Spending money: average balance £24k
The future: average balance £23k
Nest egg: average balance £22k
Running away: average balance £21k
Sunny day: average balance £20k
Gardening: average balance £19k
Rainy day: average balance £18k
Birthday: average balance £17k
Cruise: average balance £16k
Ready cash: average balance £16k
Holding: average balance £15k
Back up fund: average balance £13k
Building: £13k
Kris Brewster, Head of Products at Skipton Building Society, comments: "While much has been said about the need for Britons to save more, we have decided to look at what people are currently saving for and just how successful they are with their savings goals. While the more serious topics such as homes, retirement and providing for the future feature in our list, there are clearly also some much more fun goals people are setting themselves to save up for. The bottom line is clear - people are much more committed to saving if they are actively saving for something, rather than just putting money away."
Skipton's research clearly shows that Brits are being creative when it comes to their savings goals and it seems putting money away ‘for something' plays an important part in getting the nation saving. A third of Brits (31%) believe it is easier to save when they are focused on a specific goal such as a new car, while a further fifth (16%) think it's more fun spending money when you've reached your goal, than if you didn't have one in the first place.
To help customers make the most of their savings, Skipton Building Society has set up twelve goal focused savings accounts within its MySavings range. All accounts offer 2.25% AER and are available online.
Kris Brewster added: "We have decided to take a slightly different approach to saving. Clearly everyone can name a handful of things that they aspire to have or spend money on. By putting a badge on our MySavings accounts, we simply remind people what that specific pot of money is for and hopefully encourage them to try that little bit harder to achieve their aspirations and become savvy savers."