Females ‘more committed to saving’

Females appear to be much more committed to saving than their male counterparts.

The Halifax Savings Barometer has looked at the savings accounts held with Halifax at the end of December 2012 in England and Wales and it shows that women typically have a savings balance that is 41 per cent of their average annual gross earnings.

This compares favourably with men, who only have a savings balance of 23 per cent of their income. Even taking into consideration the fact ladies typically earn £13,500 less a year, their savings balance was still better at the end of 2012 (£8,211 compared to £7,699).

Women living in the south-west were found to have the best earnings to savings ratio (49 per cent), while ladies in London had the worst (30 per cent).

Richard Fearon, head of savings at Halifax, said: "In recent years, people have become more aware of the need to put money aside in order to build a financial savings cushion. However, while – on average – women earn significantly less than men … women [are not only] out-saving men relative to their annual earnings, but they also have more savings in total."

He added people should also make sure their savings are working for them by putting them in accounts that offer good interest rates. While not everyone will be able to put a lot of money by every month, everyone should endeavour to set something aside.

This pattern of female dominance when it comes to saving is reflected in a study that was recently released by HSBC, which found that women on average put away £1,775 in 2012 – much more than the £969 recorded for males.

It points to the fact ladies are taking an increasingly responsible attitude to money management and this is a pattern they should look to continue. For more information on the matter, head over to the Cleardebt blog.

By James Francis