Economic crisis has increased consumer money confidence

Confidence and interest in investing has increased among consumers as a result of the economic crisis, a survey from the Institute of Financial Planning (IFP) shows.

Consumer surveys conducted by the IFP as part of its second annual Financial Planning Week revealed almost two thirds of consumers were more interested in understanding money and investments as a result of the economic crisis with only 28% claiming to be unmoved.

The results also showed an overwhelming majority of people felt confident that they would know how to start a nest egg if they were given £1,000, with 97% feeling confident about doing so.

Almost three quarters of consumers claimed to view their pay cheque with a sensible eye but the remaining 28% confessed to seeing it as an opportunity to ‘splurge rather than save’.

Although 79% of consumers are not putting off saving, a total of 46% admitted to not having set up long-term financial goals.

Nick Cann, chief executive of the IFP, said the results were ‘reasonably promising’ but much more needed to be done to raise awareness among consumers as to the importance of saving.

‘Once again not enough is being done to set out long-term goals and this is where professional financial planners come to the fore. Life planning and cash flow modelling are essential parts of the process. [The] IFP conference is focusing on helping planners to master these key differentiators for the benefit of clients,’ he said.

Dennis Hall, certified financial planner with Yellowtail Financial Planning, said it was surprising that the minority of respondents had established short-term goals.

‘Well articulated goals help bring the purpose of saving to life and whilst short-term goals are easier to picture, long term goals can be equally vivid and motivational,’ he said.

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