Tuesday, December 03, 2013

Is your company benefiting from the "You Might as Well Spend it" syndrome?

Latest data from the UK's Bank of England show that savers (predominantly older people) are withdrawing money from their accounts at the fastest rate for nearly 40 years.

They took £23 billion out of long-term savings in the past 12 months, equivalent to £900 for every household in the country.

What they did with it is not that clear. Some will have gone into other financial assets, some to help with day to day living but I suspect there is a large amount being spent on the basis that interest rates are so low, inflation is eroding values so you might as well get some enjoyment from the money

I have just invented a new term. The "you might as well spend it" syndrome.

Now if I am right it means that companies that understand motivations of these older consumers could do very well.

So beware - there is a spending bonanza going on that you might well miss if you are not fast on your feet. Dick Stroud

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