Young Brits urged to become savvy savers

Young people who are looking for the best savings rates have been told of the importance of putting any spare cash which they have into a bank account.

The editor of CashQuestions.com, Annie Shaw, admitted that the current economy in the UK is making it "very difficult" for young Brits to save.

She acknowledged that this is largely because the unemployment rate is high for the British youth, graduates and non-graduates.

However, Ms Shaw advised: "Young people should be aware of the power of compound interest and a long-term investment.

"If you are saving for a rainy day, just get into the habit and save a little bit if you can."

The expert was also keen to point out that young people who put away some of their earnings, possibly after finding the best savings rates, may find their choice of money tactics is beneficial when times become hard.

"Don't ever think it is not worthwhile because there may come a time when you just need a little bit extra to hand and to have a bit tucked away in the bank account or in a savings account," Ms Shaw stated.

Furthermore, she explained that people do not need to put away a considerable chunk of their cash each payday, with a couple of pounds per week likely to do the world of good.

The advice comes soon after Kate Moore, head of savings and investments at Family Investments, pointed out that parents can play a huge part in giving their kids a strong financial start to working life.

By investing some money for their child during their early years, the expert explained that mums and dads are likely to give them a stronger base for getting onto the property ladder or paying for hefty university tuition fees.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-11-10 12:58:16 © Moneyextra.com