Feb 9 2006
Britons have been dipping into savings to pay for luxury items such as gifts, holidays and shopping.
New research by Birmingham Midshires criticises extravagant Brits for raiding piggy banks to pay for a more lavish lifestyle or to fund unforeseen debts.
The Saving Britain study found that Britons are four times more likely to splash out on non-essential treats rather than things they need during the gloomy winter months.
The poll of UK consumers between October and December 2005 produced a list of reasons British consumers dip into their savings. The top reason given was gift, impulsive purchases or luxury shopping (33 per cent), followed by overspending on a current account (27 per cent) and holiday or weekend breaks (21 per cent).
Other reasons given for using savings included unexpected bills, emergency home or car repairs, higher than expected credit card bills, lending money to family or friends and entertainment
The survey also reveals that over fifties are most likely to dip into their nest eggs and take more of their savings, while those in their twenties tend to be more prudent.
Birmingham Midshires head of savings – sales and marketing, Kevin Mountford, commented: "Our advice is always to plan ahead when it comes to allocating your savings for the month – ensure you can afford those extra treats to avoid the guilt of raiding what you’ve worked hard to achieve."
© Adfero Ltd
