Consumers 'should set goals on savings accounts'

Britons have been advised to set goals on the amount they want to save.

Whether you're looking to put some money aside for a holiday; new car or to pay foryour childrenchoosing the right savings scheme willplay an important part, so it's essential yu choose the best option foryou.

Setting specific goals can help provide people with the motivation they need to store sufficient amounts of money in savings accounts such as ISAs and fixed rate bonds.

This is according to David Rodger, managing director at the Debt Advice Foundation, who noted that targets are often a good way to ensure Britons stash enough of their cash in savings products to help provide themselves with some financial security for the future.

However, Mr Rodger explained that placing the bar too high in terms of the proportion consumers are hoping to save could have the opposite effect.

"It's a great idea to set savings goals for motivation, but they must be realistic or they will become demotivated all too quickly," he added.

The expert went on to state that it is "important to plan" and indicated that people could make use of "free downloadable tools" to help them do this effectively.

These comments come after research published by Barclays last week (April 4th) found that the effects of the global economic downturn had created a new generation of savvy and ambitious younger members of the population.

For instance, nearly a third - 32 per cent - of all 20 to 29-year-olds are now saving around 20 per cent of their monthly salary In order to make a monetary safety net to help deal with future costs.

But while Mr Rodger agreed with the findings of this study, he added that the continually low level of interest on offer from banks and building societies on their savings products means that individuals are better off looking to pay off any debts they have accrued as opposed to putting funds aside.

Una Farrell of the Consumer Credit Counselling Service recently said that Britons should not be afraid of seeking professional help when in financial difficulties.