Families refuse to give up ‘must haves’ during recession
Despite the recession affecting millions of families around the UK, a large number of consumers admit there are certain things they will not give up in order to boost their savings.
In times of financial struggle many families have to sacrifice various aspects of their daily lives that are financially demanding, but there are a few things consumers will not give up despite squeezed finances, according to Aviva’s Family Finances Report.
A considerable three quarters (76%) of families have said they will not give up certain costs, despite the benefit of saving money.
Of those involved in the report, 17% said they will not sacrifice their summer holiday, 14% will not turn down their heating and 12% will not give up their satellite/cable television.
These non-negotiable items are also joined by take-away coffees (6%) and breakfast en route to work (4%). Aviva worked out that savings of £477.60 could be made a year by cutting out a daily coffee.
Saving seems to be low down on the agenda for families as most said whilst they could potentially put some money aside, they tend to only save ‘as and when’ as opposed to consciously setting a percentage of their income aside each month.
Just one in five (19%) families put away money each month, which highlights the fact that the majority of families put savings away infrequently.
Richard Kelsall, head of savings for Aviva, commented on the saving habits of families throughout the UK.
He said: "It's clear from our research that families are making tough decisions about their spending, which unfortunately means saving can become less of a priority.
“However, our research shows that most families are trying to save and it's encouraging that two thirds say they could afford to put more money aside each month.”
Individuals that are looking to save on a regular basis should set up a savings bank account, where a direct debit could be set up to ensure savings are added to an account each month.