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Downturn in market encourages saving


Consumers are "much more" likely to consider their savings when the country's economic outlook is particularly grim or there has been a downturn in the market.

The Children's Mutual, a UK-based company which specialises in savings for children, has said that while people's financial situations may be more difficult in the wake of the credit crunch, this will make them "stop and think" about putting money away.

David White, chief executive of the organisation, noted that the number of people who have set up a monthly direct debit at the same time that they have opened a child trust fund has increased every month in the first quarter of 2008.

"What happens [during] downturns in markets is that people think, 'You know what? We should really be a little bit more careful with our money, and we should save a bit'," he explained.

Mr White went on to say: "So far this year, month on month we have seen an increase. And I suggest that, actually, in times of negative press around financial things, people actually consider savings much more than they do when everything seems fantastic."

According to the latest TISA Quarterly Survey of Child Trust Funds (CTFs), parents and other family members will keep increasing savings for their children's future in times of economic uncertainty.



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