Young people 'prefer loans to saving'
Published On 19 May 2007
Young people in the UK are far more interested in taking out loans than saving for the future, a banking expert has claimed.Ross Dalzell, marketing manager for savings at Alliance & Leicester said that the bank had been trying to introduce saving products that would be attractive to younger people.
He added that however much the lender promoted these products, young people remained more interested in getting further in debt with loans.
"There's a consensus out there that younger people must be starting to save and the savings market must be becoming younger," Mr Dalzell explained.
"In reality, we find, no matter what we do, now matter what products we launch, it's the 45 plus market who are savers.
"It's the loans [young people] are far more likely to buy from us, [rather] than any of the savings products," he added.
This propensity to spend rather than save was born-out by a recent study by Abbey. Its data showed that only 40 per cent of people aged between 25 and 34 think that they are more financially astute than their parents.
In contrast, 71 per cent people aged over 55 think they have managed their finance more effectively than their parents ever did.
