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Brits urged to change savings mindset The way in which Britons think about saving needs to change if they are to start putting away more money, according to a new report.



Nearly a third of consumers state that they cannot be persuaded to save, but not all are in a position where they actually cannot put away anything, says the Building Societies Association (BSA).

The organisation urges consumers to get in the right frame of mind and think about the long-term benefit rather than the short-term costs.

BSA director-general Adrian Coles said: "The way many people currently think about saving needs to be challenged. We need a change in psychology.

"Instead of thinking of what you could spend the money on now, you need to think about how reassuring it would be to cushion against future expenditure, be it planned or unforeseen."

Last week, financial services provider Legal & General released the findings of its MoneyMood survey for February.

It said that the "mood to save" was at a three-year high last month, with nearly two-thirds of adults looking to put away money.

Parents turn to children for pensions help We are used to hearing about younger adults turning to 'the bank of mum and dad' for help with their finances, but when it comes to pensions, it works the other way too, it seems.

Around 27 per cent of the people questioned by Yorkshire Bank Isas and Investments said that they hoped their children may be able to help them out financially when they retire, if necessary.

Just 13 per cent of people are investing a sum of money each month into a retirement fund and 40 per cent say they have no real savings for old age.

Gary Lumby, Yorkshire Bank's head of retail, said: "By not saving for the future, parents appear to be aware they're storing up hardship for themselves.

"Many are already presuming their children - 'The Bank of Son and Daughter' - might be the answer to all their financial problems. However, the easiest solution is to start saving now."

While 60 per cent of non-savers said that they knew they should be saving for retirement, they claimed that they could not afford to due to all the costs involved in modern life.

A survey from www.six-steps.org showed that two thirds of Britons feel they are not financially prepared for their retirement.

Britons 'in the mood to save'

Britons are more enthusiastic about saving their money than they were one year earlier, it has been claimed.

Around 64 per cent of approximately 1,000 adults questioned for a new survey said that that they were in the mood to save at the end of February, compared to 56 per cent at the same time in 2006.

Accordingly, 24 per cent of adults said that they were geared up to spend their money at the end of last month - the lowest February figure ever recorded for Legal & General's MoneyMood survey.

Claire Stracey, director of customer marketing at Legal & General, commented: "These latest figures show the MoneyMood of the nation is firmly in 'save' mode as we enter the Isa market this year."

She added that the percentage of households who say they have money to spend after paying bills and debt had not changed in the last three years, showing the majority of households were in a position to save.

With the annual Isa allowance deadline approaching on April 5th, many savers will be putting their money in these types of accounts in order to make the most of tax-free savings.

Parents save for education costs

The cost of higher education is the most cited reason for people choosing to save in a child trust fund (CTF) account, it has been revealed.

Director of F&C Asset Management Jason Howells said that the focus of parents was "very much on the costs of higher education soaring".

However, there were other things that parents were saving for when putting money by for their child's future, including the deposit for a first home and even wedding costs, Mr Howells explained.

The CTF scheme, in which parents of children born after September 1st 2002 receive a £250 voucher to start a savings and investment account, also encouraged savings, he said.

He stated: "So obviously that's got investment on the radar; a lot of people who, perhaps previously, would not have bought investment products. One of the objectives of the child trust fund is to encourage the savings culture."

Around 17 per cent of single parents help to fund their child's education or pay back Student Loans, contributing around £2,929, while 16 per cent of married couples or couples living together pay £2,366 towards them, a study from Engage Mutual found.

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