'Psychological shift' needed to make people save
Published On 27 March 2007
Fewer people would be forced to use debt consolidation services, or seek debt relief, if they could be encouraged to save effectively, a new report suggests.According to the Building Societies Association (BSA), 30 per cent of people who do not currently save any money say that nothing could encourage them to change their financial habits.
However, the BSA suggests that this might not be completely true and that more people could avoid have to use debt consolidation services. The organisation says that many people subconsciously 'choose' not to save.
People need to focus on the long-term benefits of saving, rather than the short-term sacrifices.
Adrian Coles, director general of the BSA, explained that the new report "chooses not to simply accept the instinctive response 'I can't afford to save' and looks deeper into how and why people come to the decision to save or not to save".
"What is clear is that 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."
With UK personal debt exceeding £1,300 billion and people still borrowing 40p for every pound they save, the BSA recommended that financial education becomes a core part of the National Curriculum.
