Spend now, pay later culture is over

Original article from the London Stock Exchange website: (click here to go to the original article)
15th August 2008

The 'spend now, pay later' culture of the last decade is being replaced by one that 'saves now and buys later', it has been claimed.

Research conducted by Yorkshire Bank showed that where people would before put purchases on credit, they are instead now opting to delay buying on impulse and saving up instead.

This was borne out by the fact that 50 per cent of respondents to its poll said they are currently more likely to save their disposable income before buying a high value item than they were 12 months ago.

The study also showed that the new culture of saving is leaving consumers more satisfied when they do afford the item they wanted, with 77 per cent admitting that this is more rewarding.

Psychological expert Phillip Hodson said: "You would assume we all prefer instant gratification to the perceived pain of waiting to fork out in full for a summer holiday or new TV. But more generally the opposite is true.

2It is a well known psychological trait that delayed gratification can generate a deeper sense of happiness - we might call it 'saver satisfaction' or the 'joy of thrift' - than buying on whim. Yearning makes the heart grow fonder."

Article from: http://www.londonstockexchange.com/en-gb/pricesnews/investnews/Article.htm?ArticleID=18734941