Posted by Flora Maudsley-Barton | April 27, 2009
Optimistic fact of the day
The UK savings rate (that’s how much we all put to one side instead of spending on handbags) is up from virtually zero to 4%. I’m proud of us!
I’m from the generation that has found borrowing easier than saving up, so I think we should be proud that we’re adjusting. Hopefully this is a new trend, not just a recession coping strategy.
The post-war average was 7%, so we’ve still got some work to do – and we should all save 10%, so somebody isn’t saving properly yet.
I am aware that inflation is bad for savings – and see my previous post about that – but it’s still worthwhile…. You could always put your savings in inflation-proofed accounts.
I wonder – did the last bout of high inflation kill off our willingess to save? Answers on a post-card please….