Research released today highlights some surprising differences between the way workers, retirees and students manage their money.
The research, released by Standard Life, asked people whether they adopted various money saving strategies. While retired people were the most likely group to make sure they don’t spend more than they have and pay off their credit card each month, they were the least likely group to set a weekly or monthly budget.
The findings highlight how different groups of people can alter their habits in order to save money. For example, while 36% of retirees said they regularly check their energy tariffs and look at other providers, only 10% of students - a group who are vulnerable to housing and energy costs - said they did this.
While students are more likely to buy things second hand and set a budget than workers and retirees, they were much less likely than working people to sell unwanted items online. Commenting on the findings Julie Russell, financial expert at Standard Life, said:
“When it comes to managing money, it's interesting to see how those who perhaps have more limited budgets and more time on their hands compare to those of us who work. Our research shows that retirees are the most determined not to run up debt, making the most of loyalty cards and reviewing contracts to make sure they are getting the best deal. But students, who are young and perhaps still have lots to learn about managing money are doing really well too, particularly when it comes to budgeting. The important thing is that whether we are busy with work or not, we take time out to plan our finances so we can make our money go further.”
Far from being behind the times, pensioners proved to be fairly internet-savvy; 46% of them said that they regularly check online comparison sites for good deals - just 1% less than the number of students who do so.
These findings highlight how groups of people with different priorities and demands on their time are managing their finances, and reflect a growing awareness of the importance of money management, particularly among young people.