A new study has found and compared the saving habits of families in the UK, Germany and China, revealing interesting conclusions.
As showed in the Family Savings report published by Lloyds TSB and think-tank the Future Foundation, the average UK family saves around 5% of their take home pay.
This percentage differs drastically from families in China, which saved 47% of their income in 2011– nine times more than UK households.
In fact, Chinese families have increased their average saving amount in the last decade, rising from 27% of disposable income saved in 2001 to 47% last year.
Saving around 10% of their income, Germany stands in the middle between the British and the Chinese savings’ habits. According to the study, German families have £3,600 more in savings than the UK average amount of £5,000. Chinese families, however, stand out the European average by holding an impressive £19,334 in savings.
European savings drops
Both countries, Germany and the UK, have actually experienced a fall in their savings average due to the current financial crisis.
As UK families have been more and more squeezed by rising living costs and frozen incomes, average British savings have decreased by 11% in the last year – around £600 in total. Pressure on German household finances has also caused a fall of 5% during 2011. China’s families, in contrast, increased its average amount of saving by 7% over the last year.
Despite this falling trend registered in British savings, data from the study showed that financial planning is rising – with up to 70% of families in the UK trying to set a weekly budget.
“UK families seem to be getting more engaged with their finances and savings, so we would hope to see some of these figures improve further over time,” commented Greg Coughlan, head of savings at Lloyds TSB.
Although bad credit affects everyone during a financial recession, responsible lenders offer unsecured personal loans which are available to give you access to the funds you may require.
Of course, no such loan should be taken lightly, and as with any form of borrowing it is important that you are able to meet repayments.