Nation's savings habits exposed

More than 7.5 million Britons only think about their financial situation in the short-term and just save money for larger purchases, Unbiased.co.uk has said.

The independent financial adviser promotion company said that it had identified five different kinds of spender on the high street based on their money management patterns.

Around three million Britons identified themselves as Frivolous Spenders, who make purchases based on desirability rather than affordability, with a quarter of these having no savings.

And while half the population saw themselves as Bargain Spenders, who don't spend money on expensive items and shop around for the best deals, more than ten per cent of this group also do not have any money stored for a rainy day.

Occasional Spenders, Credit Spenders and Random Spenders made up the rest of the UK population.

David Elms, chief executive of Unbiased.co.uk, commented: "This year's research into the nation's propensity to save shows some improvement, but it is disappointing that we still define ourselves as a nation of spenders rather than a nation of savers."

Research from Abbey Savings discovered that Britons could be collectively losing out on interest of nearly £3 billion by delaying depositing the maximum £3,000 allowance into a cash Isa until next year's deadline.

Insurances Limited comments “Most people do indeed live for today so it’s the role of the Financial Adviser to make the consumer think of negative aspects of life. Life Cover is the hardest insurance to sell but probably the most valuable if you need to claim.”