New savings-based attitudes are fleeting

05.22.09
By Nicholas Storie

The once spend-happy attitude of many American consumers has started to fade away given the onset of the worst financial crisis in recent times.

But consumers who have altered their financial habits in light of the economic downturn are not expected to keep up their new-found savings patterns once the markets improve.

A new survey by HSBC Direct delves into the saving habits of the U.S. population and finds some trends that suggest newly acquired saving patterns may not be permanent.

The findings of HSBC Direct's Active Saver Know-How Research Panel show that 85 percent of those surveyed have changed their saving and spending habits as the economy has deteriorated. These changes have trended toward those of active savers - a segment of the population HSBC describes as having a consistent and long-term approach to saving.

But 76 percent of the population believes these new-found saving plans will revert back to pre-recession ways as soon as the economy improves.

Right now, many people are saving money to help pay off credit card bills and live a debt-free life. Others are saving money for a rainy day fund or in case of job loss. Some are stashing cash in hopes of taking advantage of low mortgage rates to buy a home.

But those who are considered active savers have more than likely not changed their savings customs.

HSBC explains that active savers "save for the sake of saving," while non-active savers are typically putting money away for a big purchase.

The study also shows that active savers likely learned this habit at a young age. They tend to see saving as an important step toward retirement and as a way to remain financially stable and generally feel secure, according to HSBC's findings.

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Some saving habits are learned at a young age