Savings bug hitting younger generations

Posted: 23 Feb 2009 08:29:20 GMT

Brits aged 18-34-years-old are saving a great deal more than the country's over-55s, it has been found by high street bank Abbey.

The bank published figures on Friday (February 20th) showing that adults under the age of 34-years-old managed to cut up to £3,599 from their annual outgoings as a result of the credit crunch, while baby boomers cut their spending by just £2,773.

One of the reasons for the extra cuts to outgoings made by the nation's youth could the high demands for deposits on a mortgage.

However, even considering the figures offered by Abbey it could be a long time before most 18-34-year-olds reach the 40 per cent deposits often demanded by lenders today.

As such, first-time buyers may choose to purchase a home online, as doing so could cut out an expensive estate agent.

A statement released from Abbey said: "Food is the most common item people are likely to cut back on, no matter where they live.

"Across all regions of the UK, the top three ways of saving money are buying cheaper goods in the supermarket, followed by reducing the number of take-aways and restaurant meals."


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