Saving 'gets tougher' for those hit by crunch

Brits saving for their children are being hit hard by the credit crunch, according to figures which show £1.9 trillion of household wealth has vanished since it began.

Research by PricewaterhouseCoopers shows that the downturn has wiped out roughly £40,000 per adult in the UK, making it increasingly harder to save money.

Sean Gardner, director of MoneyExpert.com, says that conditions have "all moved the wrong way" for consumers, with rising rates on loans and credit cards set against plummeting savings rates.

He encourages savers to "be as market savvy as possible", shopping around for savings providers and researching financial products carefully before committing themselves.

Mr Gardner adds: "You simply need to stay on top of your finances and switch to a new provider when the deal expires."

A recent poll by Moneysupermarket.com suggests that some planning their children's funds are already taking heed of this advice, as 44 per cent said they had either moved or were planning to move to a higher paying savings account.