People would rather drink coffee than save money

31 May 2012

coffee-cupForget economic doom and gloom-we are all so well-off it’s practically untrue. Yesterday we told you how Ernst and Young have worked out that we will all be nearly £500 nicker better off this year than last, and today comes news that most of us could put a bit away every month, but we choose not to. We’d rather spend our money on holidays, satellite telly and overpriced delicious takeaway coffee.

The survey, commissioned by Aviva (Norwich Union), found that approximately a third of UK families say they have cut their spending to the absolute bone, rising to 65% of single parent families, but that 79% of families admit there are certain cutbacks they can't or won't make. 173% of the researchers were no good at maths*. Of the two thirds of families who believe they could afford to save something extra each month, the typical "affordable amount" is £53 a month (£636 annually).

The survey found that people are prioritising "must haves", instead of thinking about saving this extra cash. These "non-negotiables" include items such as summer holidays (17%), not turning down the heating (14%), and cable / satellite TV (12%). Austerity my bottom.

But bizarrely, when asked about where they would find the extra money, families said they were most likely to cut back on food costs by stopping regular take-away meals (26%), or buying basic ranges in the supermarket (25%). They would be far less likely to give up take-away coffees (6%) or breakfast (4%) on the way to work even though they could get close to the £53 monthly amount just by cutting out a daily £2.50 chocamochaskinnylattecino.

The research shows that saving, even if we do have the money, is not top of families' priority lists. While most families admit they could put something extra aside, their savings experience tends to be ad hoc rather than as a conscious part of their regular financial planning. Only one in five (19%) families set aside a specific amount each month and one in eight families (12%) admit to using a penny jar or piggy bank. Just don’t try and pay your accountant with it.

But what do you think? Is saving a little bit worth more than a little bit of luxury? Or, if you are daft enough to be a Starbucosta addict, should we even care about whether your family can eat cool and retro Kellogg’s cereal instead of Budget flakes? Is all this talk of a recession just plain nonsense? Won’t someone please think of the children?

*The researchers meant to say 76% of the remaining 67% (which is nearly 53%). But they didn’t.

TOPICS:   Supermarket   Banking   High Street News


  • Cheesey
    Why do all these financial mongtards harp on and on about how much we'd save if we gave up this or gave up that? The simple fact is that shop coffee tastes better than home brewed instant, is more convenient and whopping understated fact that he vast majority of us can afford it.
  • Cheesey
    Fact: If Aviva hadn't commissioned this useless survey then they would have saved themselves twenty five grand which means that all Aviva policyholders would have paid less premiums. The only downer would be that the staff of Avivas marketing department and survey company wouldn't have been able to afford crack cocaine and their dealer would have had to pimp his mum out.
  • spencer
    you can get a hand press esspresso machine that tastes every bit as good as shop coffee (if not better if you burr grind some blue mountain beans)... doesnt need to be plugged in or anything. I've used one for nearly 2 years now and it's fantastic. 'aeropress' Just saying...
  • lee
    ive never bothered with the shop coffee - too hot and too expensive, im more than happy with the granules i grew up on. as for saving i live alone and have a decent amount of money to live on due to benefits from my disability, but saving is hard to do - i can see why families want to spend it on a holiday or sky tv, i know i spend £60+ per month for sky hd world, but without it tv wouldnt be worth bothering with. i spend all my spare money on steelbooks, most wont know or care what they are but thats the way i choose it to be. after all you cant take it with you, so may as well spend it now.
  • Sicknote
    I love going into whatever the fuck it's called coffee shop and asking for a milky coffee in a glass mug....when the little cunt asks me do I mean a Latte to drink in I simply call him a cunt and walk out.
  • Mike H.
    Hang on Lee, you get disability benefit but decide to spaz it on sky and steelbooks, whatever the fuck they are, sound a bit gay and a waste of money. Obviously, you don't need the benefit then? A lot of these chavvy families aren't poorly off, they just think that by saving 10p a week on their familiy shop they are some how 'in it like the rest of the plebs' when infact you're pissing your money up the wall on sky, 70"tvs DVD's shit for the garden, shit for your scroats (fuck you spelling nazis) and all kinds of shit from HUKD
  • lee
    I am not real Mike. You made me up so you could winge about me; it's all part of the breakdown you've been having recently.

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