Brits need to get their priorities right financially

If Brits want to find more money to put in accounts with the best savings rates or a way to make ends meet, they need to get their priorities in order with regard to their finances.

This is the view of Phil Perry, advisor and director at Ark Financial Planning.

He suggested that often people will prioritise having the most up to date technology or a 50-inch television, over more basic needs such as life insurance, or even a sofa.

"It is unbelievable what you see – people's priorities aren't always in the right place."

Mr Perry explained that there are a number of different mindsets when it comes to money, saying: "There are those who have got money and understand that they want to save it because they have got an objective in mind and are able to save, and there are those people who can't be bothered and just spend it and are basically living hand-to-mouth. Then there are those who have not got a great deal but understand the reasoning behind saving."

But he stressed that ultimately, parents need to ensure they have processes in place – life protection or savings – so their children can be provided for in the event of their death.

According to Aviva, the foundation generation, those aged between 25 and 35 years, are more serious about laying down savings and planning for their future than their predecessors.

Some 50 per cent of this group have a work or personal pension, while 89 per cent have a savings account and 41 per cent invest in a cash Isa.

The research suggested the foundation generation are more likely to prioritise savings and homeownership over taking regular holidays and are keen to ensure any debts they build up are paid off.

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2011-12-02 13:18:22 © Moneyextra.com