Young people keen to save more in 2011

17 January 2011

Young people are more motivated to save this year than last year, with 56% of 18-24 year olds saying they hope to save more in 2011.

Last year many people failed to put money away regularly and although savings increased slightly, around 40% of people withdrew more than they saved. Furthermore, only 15% saved a lot more than they spent, according to a report from HSBC.

Looking forward, people are more positive about 2011. Those aged 18 to 24 years old are the age group most likely to save more, closely followed by 25-34 year olds (50%).

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However, older savers face an opposite trend. More than a third of people aged over 55 say they expect to save less this year, while just 22% intend to save more.

HSBC says this is due to the rising cost of living and low interest rates.

Richard Brown, head of savings at HSBC, says 2010 was a difficult time for savers and it is encouraging to see the reverse is true for 2011.

He adds: "With a tough outlook for the year ahead and based on their performance last year however, it will remain to be seen whether these noble intentions materialise."

A study by Lloyds TSB has revealed some more noble intentions. The most common new year's resolution for people, after losing weight and getting fit, is taking control of their finances. And of those, almost half (44%) of Brits getting their finances in order are focusing on their savings.

The study shows that on average men will aim to save £1,349 this year and women will save £1,128.

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