A recent survey has shown that nearly half of respondents replied that they will save more money this year than they did last year. Housing and vacations are the most popular means used for saving purposes.
This is reflected in the fresh consumer barometer Ipsos has prepared for DNB.
Almost half of the respondents said they want to save more money this year than they did last year. Among the youngest, two out of three agree that they will save more in 2017.
‘One of the reasons why people want to save more may be that the interest rate is low, and so they have more left in their accounts after all the expenses have been paid,’ said DNB’s consumer economist, Ylva Molenaar, to NTB news.
‘Many people realize that it’s a good idea to have a little extra on the account for unforeseen expenses, as well as for vacations,and for other future savings,’ she added.
House price jump
While last year, 17% reported that they would save on housing, this year the number is 29%. One in four responded that they will save for travel or vacations, while one in five will set aside money to have a little extra in the bank.
Among Norwegians between the ages of 18 and 29, 62% said that they will save for housing.
‘Many young people find it difficult to enter the housing market as there has been a sharp rise in house prices,’ said Molenaar.
‘Requirements for equity and a five-fold restriction may encourage young people to see the need to save money for housing.
‘A good tip is to save in BSU, DNB’s Home savings scheme for young people, where there are better interest rates than in savings accounts, and tax cuts of up to NOK 5,000 a year’, said the consumer economist.
Housing prices have risen sharply lately, especially in the big cities, and in the area around Oslo. In the capital, prices have risen by more than 20% over the course of the past year.
Also in the 30 to 39 year old age group, many people (32%) responded that they will save for housing. But among Norwegians over 40,holidays were the most popular reason for saving.
While last year, nearly 50% didn’t set any concrete goals with their savings, the figure has fallen to 37% this year.
It makes sense to have a goals when saving, said Molenaar, who also offered some useful savings tips:
* Set a plan for saving and stick to it.
* One idea is to mark your savings against what you want to save.
* You may want to visualise your reason for saving, by using a picture of, for example, a dreamed of holiday destination.
* Low deposit rates mean less money on returns from regular bank accounts. Savings in funds, and owning shares can yield higher returns, but also increase the risk factor.
‘But if you plan to save for a long time, I would recommend taking a greater risk, than leaving the money on a regular interest account,’ said Molenaar.
Source: NTB scanpix / Norway Today