Carpe diem is perhaps the expression that best describes the British attitude to saving, as millions of people continue to spend money frivolously.

Research from Unbiased.co.uk indicates that there are more than 7.5 million people who only consider short-term goals. Three million consider themselves to be "frivolous spenders", buying goods on impulse with no thoughts of affordability.

The new report calculates that there are two frivolous spenders for every one financially aware person in the UK, despite concerted government efforts to encourage a more responsible attitude to finances.

Worryingly, 28 per cent of those between the ages of 16 and 24 will only save towards large purchases. Very few people in this age group have committed any money to long-term projects and half say that clothes and entertainment are the priority.

There are five types of people when it comes to saving, according to Unbiased. While frivolous spenders base their decisions on desirability, occasional spenders are more likely to have long-term plans. Occasional spenders do not forego luxury purchases but they are also committed to putting some money aside.

Bargain spenders, meanwhile, thrive on cheap deals and special offers. Interestingly, however, many of those who claim to be bargain spenders have no savings whatsoever.

Credit spenders, of which there are four million in the UK, make most of their purchases using a card. The final group - random spenders - do not fit into any of the other categories and they splash the cash quite sporadically.

David Elms, chief executive of Unbiased.co.uk, said: "This year's research into the nation's propensity to save shows some improvement, but it is disappointing that we still define ourselves as a nation of spenders rather than a nation of savers.

"Hopefully we will continue to see improvements in saving practices so that by next year it will be possible to define British consumers by their saving as well as by their spending," he added.

© Adfero Ltd