Young people 'need encouragement to save'

Younger people require encouragement to put cash aside for their future, it has been said.

Younger members of British society need to be given encouragement to compare savings and then actively use products such as cash ISAs and bonds, an expert has suggested.

According to Jason Riddle, co-founder of campaign group Save Our Savers, more needs to be done in order to make sure that young people are thinking about their future by storing cash away in the present.

Mr Riddle explained that the youth of today will find it harder to adopt a habit of saving in the wake of the recession and added that "there's a real risk of this generation reaching middle age without any meaningful financial provisions".

He noted that "young people today will be picking up the bill for the financial crisis for a very long time to come", as increased taxation and higher debts take their toll.

Meanwhile, Scottish Widows last week (March 3rd 2011) revealed that more than a third of all adults in the UK are not currently saving at all.

An expert has advised people on how they can avoid spending more than they earn.

Many Britons may find themselves regularly needing to resort to dipping in to their savings accounts or putting expenses on their credit card in the days leading up to their next pay day.

However, according to Ed Bowsher, head of consumer finance at lovemoney.com, there are a few simple steps consumers can take in order to make sure their current account balance is sufficient by helping their wages stretch further.

Mr Bowsher noted that forming a monthly budget is crucial, as "if you monitor what you spend and plan your future spending with real care, your spending should fall".

He was speaking after the release of official government figures by the Resolution Foundation recently (February 28th 2011), which revealed that average pay is on course to be no higher in 2015 than it was in 2003, even though inflation looks set to continue to rise.

The lovemoney.com official added that there are ways of boosting income, such as renting out a spare room.