The Savings Habit

by Leeds Building Society

Are you in the savings habit?

When it comes to saving money, we all know that it should be something we do regularly. But with all the expense of day-to-day life, how many of us really do? We wanted to find out how many of us actually saved on a regular basis and how much.

We surveyed 1000 people aged 25-35 to find out about their savings habits. The survey, commissioned by Leeds Building Society and carried out by OnePoll, asked people if they saved regularly, how much they saved each month and what they were saving for.

A nation of savers

It turns out that we are a nation of savers. More than three-quarters of respondents (75%) said they were saving for the future. More than one in four (26.1%) are putting aside up to £50 each month, and a further 17.6% are managing to save between £101 and £200 per month.

These monthly savings add up to a sizeable nest egg. A quarter (25.5%) of those surveyed had between £1,000 and £5,000 in savings, although almost two in five (39.7%) had £1,000 or less. One in eight (12.1%) had £100 or less saved.

What are you saving for?

While most people (45%) were saving for the unexpected, many people have a savings goal in mind to help them stay on track. These included a new home (40.5%), a holiday (34.5%) or a new car (18.1%).

But not everyone finds it easy to save. 58% of people surveyed said that low wages stop them from being able to save. Other reasons that stopped people from saving were past debts (39%), credit cards and loan bills (35%) and the cost of having children (29%).

Top five reasons for saving:

  1. Contingency/emergency fund - 45.8%
  2. Home deposit/towards moving house - 40.5%
  3. Holiday - 34.5%
  4. Rainy day - 30.0%
  5. New car – 18.1%

Top five reasons holding you back from saving.

  1. Not earning enough to save - 57.9%
  2. Past debts – 39.7%
  3. Current loans and credit cards – 35.1%
  4. Cost of having children – 29.0%
  5. Monthly cost of accommodation – 18.2%

For more information about saving money and staying in control of your finances, take a look at the savings section of our Knowledge Base.

If you want to start saving regluarly take a look at our range of accounts

Want to start saving regluarly? Find out more