Brits know their money

MONDAY, SEPTEMBER 04, 2006

A new survey has found that the British are better at saving than they are being given credit for. Despite earlier reports that many householders are struggling with debt problems, Birmingham Midshires has said that the average Brit is actually sitting on £7,548 of savings.

According to the building society, this would be enough to hunker down for 167 rainy days and stay pay any mortgage, credit cards and other unsecured debt. Many advisers suggest having three months' salary tucked away for times of need, which would add up to £4,128 over a three months period. Most UK adults appear to be doing a good job of looking after their finances in this respect.

"For a long time we've been vocal in recommending that Britons have at least three months' salary in savings to cover those unexpected costs that lurk around the corner," said Jason Robinson, director of savings operations at Birmingham Midshires. "It is encouraging to see that we are taking heed of this message and are actually saving double this amount."

The company's survey found that the actual amount saved varied by age, gender and postcode with the ideal saver being a man over 50 who lives in the South of England (but not in London). However, every group questioned had put aside something, suggesting that a responsible portfolio of affairs is a widespread occurrence. It seems that people in the UK are saving to avoid any debt issues should they undergo any sudden and unexpected change of circumstances.