Toni Taylforth has worked at the Cumberland for six years, helping people save for everything from their first car to their first baby.
“Most younger people are saving for a deposit for their first home,” she explained. “With the older generation it can vary; a big holiday around the world or just general savings for their grandkids.”Currently pregnant with her second child, savings are for something different for Toni though.
“For my first I’d saved for cots, pram and things,” she said. “Because it’s my second it’s a bit easier, because I’ve already got all those things already. But I’m still saving so I can still enjoy myself while I’m off during maternity leave and have financial security.”
While our customer service advisors cannot give advice on how much to save and for what, there are some simple tips when it comes to saving.
Toni said: “Put a sum aside once you get paid, straight into your savings account. That way you won’t be tempted – it’s easier not to spend it when it’s not in your current account.
“By saving every month, even if it’s not for anything in particular, there can be money there if needs be.
“You can dip into it for the smaller things, or build it up for when bigger expenses happen. You see a lot of people with a few different savings accounts, so they’ve got them for things like a girls’ weekend break or Christmas.”
Amid cost of living challenges, many people are choosing not to save but to leave their money accessible. Research by the BSA shows 33% of people hold most of their savings in a current account. “People whose savings are in their current account could be missing out on interest,” Toni continued. “But instead it could be set aside in an instant access account and earn money in interest.”
The idea of savings is one Toni says can appeal to parents for their children’s future. At the Cumberland, we offer a Young Savers account that parents can open on the child’s behalf, developing good savings habits for their children in the process.
“You can add money from birthdays or Christmas and still be able to access it, depending on your exact account’s terms, but it is gaining interest instead of it sitting in a piggy bank,” Toni said.
“We also offer a Junior Cash ISA which doesn’t allow withdrawals until the child turns 18, encouraging saving for later in life – maybe for their first car.”