Young people experience 'more money pressure'

Young families are set to experience more financial pressure than other groups, making it harder to build up money with the best savings rates.

Martin Bamford, chartered financial planner at Informed Choice, said that increased university fees as well as the cost of getting on and climbing the housing ladder can mean many young families feel the pinch.

"The older generation seem in a better position, because they have not had to incur this cost that the younger generation has had to take on board," he explained.

However he said that the one blessing is that interest rates remain low which mean people are saving money on repaying any debts they already have.

The most sensible option is to use this extra money to pay off the debt more quickly or build up funds in accounts with the best savings rates, he said.

Families are more worried than ever about the rising cost of living as inflation continues to increase, according to research from the latest Aviva Family Finances Report.

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2011-09-01 13:00:56 © Moneyextra.com