Financial capability and saving: evidence from the BHPS

Publication type

Research Paper

Series Number



CFEB Consumer Research Reports


Publication date

November 15, 2010


We commissioned this report to look at savings patterns in Britain and investigate what predicts an individual’s probability of starting and continuing to save – that is to build up a saving habit. It focuses on savings that are predominantly for the short term, examining the extent to which people put money aside other than to meet regular bills. The report looks at the relationship between this type of saving and financial capability, income and a wide range of individual characteristics such as age, gender, education level and labour market status. The analysis is based on the British Household Panel Survey (BHPS). The survey offers a rich longitudinal dataset, and provides a unique opportunity to study the behaviour of individuals over time. The survey collects data on various aspects of people’s lives and, for the purposes of this study, analyses how savings behaviour is related to different characteristics and life events over time. It allows a robust analysis of year-on-year changes, and the ability to explore how savings patterns, and non-savings patterns, develop over the longer term.



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