Saving Money Tops Town People's Millennium Wish List

One in three people (29 per cent) say that saving more money is their resolution for the millennium - while only one per cent of people expect to borrow more money, according to new MORI research by IFA Network.

The new findings suggest that ISAs have got British consumers into a savings culture and that people are getting into the savings habit before the end of ISAs first year.

The research conducted by MORI for IFA Network, a leading support service to 800 IFAs, asked more than 1000 people to reveal their financial resolutions for the millennium. Key findings included:

Saving Money: One in three people (29 per cent) said they want to save more money in the millennium. This was a particular favourite with 16-24 year olds, 52 per cent said they intended to save more money.

Debt Management: One in ten (11 per cent) said that managing their debts better was their millennium resolution.

Pension Provision: Surprisingly, only seven per cent of people said they will take out or add to their pension - indicating a lack of understanding about the need for retirement saving. This is a particular problem amongst the young with only one per cent of people aged 16-24 expressing any desire to take out or add to a pension.

Credit Cards: Four per cent of people questioned said they will get rid of their credit cards in the new year perhaps concerned by higher interest rate card charges. In addition, only four per cent of people wished for a complete financial review from an IFA in the New Year.

Not for Charity: Giving more money to Charity was well down on people's list of financial resolutions. Only three per cent said they would give more money to a worthy cause. Other less popular resolutions were changing banks (one per cent) and borrowing more money (one per cent).

Local Bank And Building Society Under Threat As Demand For Ifas Is Set To Soar

New research reveals a third of people (31 per cent) think about their finances at home in the evenings, three per cent think about financial planning when they are in the high street, while only one per cent think about their finances during lunch at the office, according to MORI research for IFA Network.

At a time when banks are rationalising their networks and when only time will tell whether Internet banking will take off - research by IFA Network shows that IFAs are ideally placed to meet the need for money advice in the home.

The findings are the latest from MORI research for IFA Network, the leading support service to 800 IFAs. The survey asked more than 1000 people when they are most likely to think about their finances. Key findings included:

Evenings at Home: Almost one in three people (31 per cent) think about their financial planning at home in the evening. With banks closing branches in some towns and on-line services yet to fully take-off, IFAs are well positioned to advise people with financial concerns.

Money, Money, Money: Financial planning is an issue for one in four people (26 per cent) who think about it all the time, while six per cent say they think about their finances before going shopping on a Saturday morning.

Morning Glory: Only six per cent think about their personal finances first thing in the morning. This narrowly beat Sunday evening, which was the preferred time for four per cent planning the week ahead.

Out on the Town: Only three per cent of people questioned said they thought about their finances when they were in the high street, despite walking past the local high street banks and building societies.

According to the research only two per cent said they think about their finances in the bath and one per cent on the toilet. Surprisingly only one per cent said lunchtimes in the office would be a time to think about money.

ISA Savers Take Long Term View As Sales Are Set To Soar

New research suggests people would take a long-term view with their savings if they were to take out an ISA, according to MORI research for IFA Network, the leading support service to 800 IFAs.

One in four people say they will invest in an ISA in order to build up capital (24 per cent) or invest for retirement (19 per cent) while only 5 per cent would use it for short-term needs such as paying for a family holiday.

IFA Network believes the findings suggest that people have clearly seen the benefits of ISAs for short-term gain, and this time round they would make the investment product work harder for them.

The MORI research for IFA Network asked more than 1000 people nationwide "if they were thinking of taking out an ISA, for which of the following reasons they would make the investment. Key findings included:

• Capital growth: Almost one in four people (24 per cent) said they would invest in an ISA to raise capital. Investing for capital was the popular choice across the all age groups.
• Retirement Planning: One in five people (19 per cent) said that they would invest in an ISA to provide support for them in their retirement. This was a particularly popular reason for people aged 35-54.
• Children's School Fees: 13 per cent said they would think about taking out an ISA for their children's school fees. Perhaps attributable to the large amount of money most parents spend on their children's education and the costs of university tuition.
• Home Development: Only six per cent of those questioned would take out an ISA for short-term reasons - such as home repairs or DIY.
• Holiday Savings: Though investing in an ISA for a future holiday proved to be a popular choice for 10 per cent of the 16-24 age group. Overall people rejected the idea of taking out an ISA in order to save for a holiday with five per cent of the vote.
• Other short-term reasons for taking out an ISA also proved less popular. Using an ISA as an emergency fund or as security against losing their job received just five per cent of the vote.

Technical details

Research conducted by MORI among a British representative sample of 1.061 people aged 16 and over between January 13th and January 18th 2000.