Financial issues prioritised, study suggests

The recession may have made people more aware of the need to avoid debt problems, as research has shown monetary issues are becoming more important.

According to AA Financial Services, Britons are saving more now that at the same time last year.

And a general trend of cutting back was cited by director of the organisation Mark Huggins as a potential reason.

“I think the recession has led many families to be more prudent than usual by cutting down on luxuries,” he said, adding that Brits are increasingly opting to holiday closer to home and “perhaps putting off buying a new car or kitchen”.

The observation comes after LV= revealed that parents in the UK are reducing household expenditure, perhaps in a bid to avoid money worries.

Cash allocated for vacations and daytrips has been lowered, as more than three-quarters have cut back on some aspect of the family budget.

By Andy Mackay