BSA: a new psychology of saving requires culture change

27 March 2007
Too many people are indulging in short-term thinking about saving, the Building Societies Association (BSA) claims as its research shows that 30 per cent of Britons say that nothing could persuade them to begin saving.

Consumers must realise that saving will bring them peace of mind and financial flexibility, commented BSA director-general Adrian Coles.

"Saving is a very individual decision and whilst some people in one situation view saving as a rewarding priority, others in the same situation see it as little more than a costly sacrifice," he added.

Nevertheless, none of the individuals surveyed said they would miss between £30 and £50 if it was invested in a savings account immediately after their monthly payday.

Individuals should make small but regular savings, put a small portion of their pay into a savings account every month, and set an overall goal to save towards, Mr Coles advised.

Moreover, change must come from within, he insisted, emphasising that "we need a change in psychology" effected through public awareness campaigns and financial capability classes.

But, meanwhile, took a different psychological tack on changing savings culture – encouraging consumers by emphasising that Britons broke savings records in 2006, stashing away £136 billion.

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