90% of under-25s still manage to save

PEOPLE are saving almost €1,000 less than they were two years ago with some saying they are finding it difficult to put money away.

However nine out of 10 of under 25-year-olds surveyed said they are still managing to save a little, a 15% increase on a year ago, according to the latest EBS consumer savings sentiment.

Annual savings fell by a further 9% between January and May of this year and since August 2008, estimated annual savings have fallen from €4,612 to €3,667.

Some 85% of 1,000 people polled said they still save – an increase of almost 10% since August 2008.

A quarter of those who have dipped into their savings are claiming to have used the money for general living expenses or bills. Holidays are now the second most likely reason followed closely by car purchase or unforeseen household costs.

Head of marketing at EBS, Aidan Power, said: “When we consider the trends over the past two years we see that the country has truly become a nation of savers. People are not going to purchase a big-ticket item on credit and worry about it later, as may previously have been the case – now people are planning their expenditure.”

Four out of five people said that they will not use their credit card to pay for their holiday this year with the same number saying that due to the recession they will save for a large purchase.

Almost seven in every 10 people believe they are better at managing their money this year than last. This falls slightly for those living in Dublin, which, according to the findings is perhaps due to the cost of living in the capital.

The survey also revealed confidence in people’s own financial situation has also increased with 51% of respondents more confident about their economic well-being compared to this time last year, an increase of 17% since January of this year.

Almost 40% save regularly with the balance of approximately 60% saving when they can.