Women spend less as credit crisis kicks in

04 March 2008 / by Rebecca Sargent
Women are feeling the recessional pinch more than men, the latest MoneyMood Survey from Legal & General has revealed.

The survey revealed that the mood for spending amongst women was down 18 per cent on last month.

Legal & General says that the difference in mood for spending between men and women demonstrates that the reported credit crisis is not having a consistent affect on people.

"What is really interesting about this month’s results is that it is clear that the reported economic downturn is not having a uniform impact," said Julia Clayworth, Legal & General’s Wealth Management Head of Marketing.

"Although it is good to see people are exercising caution with their spending, they are not changing their behaviour dramatically. It will be really interesting to see next month’s results which will be taken after the recent stock market volatility and see if this has filtered down to people’s spending behaviour."

This month’s Legal & General survey also displayed a clear age related divide in spending habits; 25 per cent of 18-24 year olds were in the mood to spend in comparison to 17 per cent of 45–54 year olds. However, the biggest drop in the mood to spend came from the 55–64 year olds, where there has been an 18 per cent drop. Julia comments,

"It is possible that the older generations have a clearer memory of previous recessions and are acting cautiously as a result of this. As people become more cautious with their spending habits, now is the time to really think about building a savings plan which could prove invaluable if the recession really takes hold. Even saving just a few pounds a month could make all the difference if times get tough."

The survey also revealed that the majority of people have not felt any substantial effects of the apparent recession, with the majority of people comfortably paying their bills this month. However, the impact of the recent utility price hikes will not be fully realised until the next quarter.

© Fair Investment Company Ltd