YOUNG PEOPLE URGED TO START SAVING
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| Article date: 05/10/2005 : 15:16:42 |
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The Investment Management Association (IMA) has advised that people between 18 and 29 should begin saving now after its survey showed that many young people don't save at all.
An IMA survey of 2,002 people between 18 and 29, carried out last month, found that 36 per cent of respondents did not put any of their money in a savings account and 87 per cent of them said they could not afford to save.
However the IMA has said that a small investment each month, meaning just a small cutback on things such as alcohol, cigarettes and mobile phones, would be beneficial in the long run.
The survey showed that, on average, 18-29 year olds spend £92 per month on cigarettes, £57 per month on alcohol and £27 per month on their mobile.
Mona Patel, head of consumer affairs at the IMA, said: "We're not saying that young people have to stop spending, we're simply encouraging them to think about what they spend and to choose to divert some of that money into long-term saving.
"All the evidence shows that the earlier you start to save the less you have to put away each month. Leave it too late and you'll have to start saving a lot more."
The IMA claims that a £20 monthly investment into an investment fund savings plan will potentially amount to £13,000 after 20 years.
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