Britons unaware of effect of inflation on savings

Many people do not know how inflation affects their medium-term finances, it has been said.

The majority of Britons are unaware about the effect inflation is having on their money stored in savings accounts such as ISAs in the wake of the global economic downturn.

That is according to Justin Modray of online resource Candid Money, who has noted that there seems to be a general lack of understanding among consumers with regard to how this figure impacts on their personal finances.

Mr Modray explained that while many people grasp the influence of inflation on everyday essentials such as gas and electric due to the clear rises in pricing it is causing, they are not yet considering how this will affect them in the longer term. (more…)

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More people having to raid savings to make ends meet

Families are having to rely on savings to afford the essentials. A growing number of families are being forced to raid savings accounts such as ISAs as a way of affording essential everyday outgoings like gas and electric.

That is the view of Tim Nichols, spokesman for the Child Poverty Action Group (CPAG), who has said the rising cost of living in the aftermath of the global economic downturn is putting additional pressure on household finances.

Mr Nichols explained that consequently, those who are “fortunate to have a bank account” containing spare funds face little choice but to dip into these funds put aside just to make ends meet on their bills.

He stated that there has been “some evidence” in recent economic figures that this is the case, as consumer spending patterns appear to show the increasing reliance individuals have on the likes of ISAs. (more…)

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