The future begins now
There is nothing new about saving money; most people have some type of savings account. However, the reasons people save and the manner in which they do it has changed over time, and modern banking is determined to help.
In the past, saving was about security, peace of mind and knowing that you had options should you run into difficulty somewhere down the line. These days it is a little more structured and goal-oriented, resulting in a more thorough analysis of savings options before a decision is reached.
Governments actively encourage saving and nowadays many parents attempt to instil a saving mentality in their children from an early age. Deeming it wise to be prudent and knowing that it certainly cannot hurt, people now are prepared to search a little further than their local bank for the best deal in savings.
Many ambitious young people are planners, constantly thinking ahead with regards to property, travel, career and family. All of these require money and thus a savings account is the next step after taking care of their regular obligations with a current account.
The days when savings were for a ‘rainy day’ are long past. Now savings play a much more significant role in people’s long term finances. Savings are incorporated into plans for homes, holiday property, economic downturns, having children, interest rate jumps affecting mortgages, health cover and child trust funds to mention a few.
Banks and other financial institutions have responded to the reasons why people save and their range of savings products reflects this shift in attitude amongst the public. To the consumer, a bank savings account now often represents a firmer, more focused commitment to a personal goal.
The amounts moved to savings accounts are now more substantial and with a more specific purpose in mind. The more organised and financially aware among us realise the benefits of long term planning and seek out those providing the savings accounts that best suit their wishes as well as those providing the best rate of return or value for money.
People are also becoming more aware of the pitfalls of inadequate financial planning and the need to have extra resources at hand to deal with them. Fluctuating interest rates and slowing economic growth can affect both the job and mortgage markets. Savings are not just a quick fix to these problems, but a sound investment that gives people more options for the long-term.
Modern savings accounts help people achieve their personal goals by being flexible and adaptable while still retaining the original merits of saving such as security. People now look at them in terms of a useful tool as they have shed their static and rigid image and are now looked upon as a helpful and significant long term allay.
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
