UK families lag behind in savings stakes

skinny piggy bank

skinny piggy bankThe high cost of putting food on the table and heating our homes doesn't leave much spare cash, so perhaps you won't be too surprised to read we're saving much less than families in some other countries.

Lloyds TSB and the Future Foundation research showed that families in Britain are on average only managing to put aside 5% of their take-home pay.

The report showed that the amount of money we put aside plummeted by more than a tenth last year. The £600 drop comes as many parents struggle to meet the costs of food, heating and other household essentials.

In China the average family saves nearly half of their disposable income; while in Germany around a tenth is set aside.

The report showed that the average UK family has a nest egg of around £5,000 - more than £3,000 down on Germany's average.

But what about you... are you still managing to put money aside for a rainy day? If so, perhaps savvy spending is offering a helping hand.

Figures show that more of us are trying to give our finances a boost by getting organised. More than two-thirds of families are working out budgets ahead of shopping, instead of walking into the expensive weekly shop blind.

Greg Coughlan, head of savings at Lloyds TSB, said: "While these findings should perhaps not be surprising in view of the figures we have seen on savings ratios, they are still remarkable.

"However, UK families seem to be getting more engaged with their finances and savings, so we would hope to see some of these figures improve further over time."

Why not use the savvy spending calculator to see what you can cut down on?