Saving for a rainy day?

In times of a financial crisis, is it a good idea to save some extra money?  Not according to The Bank of England’s deputy governor Charlie Bean! He claims that, while savings earn very little interest, we should help the struggling economy by ‘hitting the high street’. Another good reason to spend some extra euros is the fear of hyperinflation since there has been so much government spending. 

But other experts warn that, with a pensions gap of £379bn in Britain, it might not be such a bad idea to set some money aside. Also, we should be prepared for higher taxes, unemployment and the dropping value of houses. So after all, it might not be such a bad idea to save up for a rainy day!

(The Guardian )

Jasmina Devinck