Consumers are starting to realise they will need a "savings cushion" in order to weather the economic climate, it has been suggested.

Ideally, people should have savings which are the equivalent to three months’ salary, recommended Ed Bowsher, head of consumer finance at lovemoney.com.

"If you’ve got a job at the moment, times actually aren’t so bad, but everyone is just a bit worried about their job so they are saving just in case the worst happens," he continued.

People may find they are more inclined to save when the interest rate improves, as they will find that banks are offering them a more attractive return on their investments.

According to the Office for National Statistics, the household savings ratio, which measures the amount of disposable income households save rather than spend, stood at three per cent during the first quarter of this year.

This is an increase from four per cent in the final quarter of 2008 and up from -0.8 per cent during the same quarter last year.

Unemployment is a "lagging economic indicator", with its true impact yet to be seen, it has been said.

Selwyn Lim, director of Mouseprice.com, believes its effect on house prices may be delayed for some time.

"Recently there has been a slight upturn in the property market, with various industries coming out with more positive news, with the indicator that the worst of the property downturn seems to be behind us," he noted.

Nonetheless, there are still pessimists out there who believe there is still a second dip to come in the market, with the upturn being a temporary fixture.

Unemployment could be something which is "yet to kick in", Mr Lim suggested, although only time will tell how its effects will be manifested.

The employment rate for people of working age was 72.7 per cent in the three months to June 2009, down 0.9 percentage points on the previous three months, the Office for National Statistics recently revealed.

Furthermore, the unemployment level was 2.43 million, up 220,000 on the previous three months and up 750,000 on the year.

Keeping on top of debts is crucial for those who want a stress-free retirement, it has been said.

Rising everyday costs are making it difficult for retirees to stay on top of their finances, according to Dave Carpenter of the Associated Press to the Houston Chronicle, which may make it more important as ever to seek debt management advice.

Monitoring cashflow and debt can help people keep on top of their finances, he stated, as can reducing spending by around ten to 15 per cent.

"Your retirement savings should be as sacrosanct as possible," he writes, adding that anyone who dips into their reserves should remember they would have to pay it back quickly if they lost their job.

Analysis from Key Retirement Solutions recently revealed that women are giving themselves greater financial freedom in retirement and that financial priorities differ between the sexes.

Single females tend to be less material in their purchases than their male counterparts, the study found, with single males spending the most when purchasing a new car.

Many Britons believe the end of the recession may be in sight, the results of a new survey have shown.

Findings from uSwitch.com understand that 13 per cent of consumers believe it will be over by the end of the year, while an additional 12 per cent think the end will come in March next year.

"Consumers really need to be aware of the financial legacy a recession leaves, long after a return to positive growth," noted Louise Bond, personal finance expert at uSwitch.com.

She also believes that people are "committing to changing their financial behaviour for the better", despite the economic doom and gloom they face at the moment.

However, of those questioned by the website, 55 per cent could not correctly identify what technically defines a recession and 43 per cent are unaware of which signs would indicate the restoration of positive growth.

According to another study by Friends Provident, a generational divide has emerged in response to the recession, with younger Brits demonstrating a more positive outlook than their parents.

More people believe now is a good time to start saving, the Nationwide Savings Index has revealed.

In July, the index increased by two points, while the importance of savings index saw a rise of 13 points when compared to the previous month.

Half of those questioned believe now is a bad time to save, marking a four per cent decline in figures from June, and 46 per cent think government policy discourages them from putting money aside.

Andy Hutchinson, head of savings at Nationwide, commented: "It has taken some time for this shift in attitudes to take place, perhaps because of the very large cut in interest rates over the last year."

He said that the findings are "very encouraging" and that they indicate that confidence is beginning to return to the savings market.

Andrew Hagger, spokesperson for Moneynet.co.uk, recently revealed that people are generally more positive about their savings than they were six months ago.

People are generally more prudent with their cash, he suggested, which may partly be due to job insecurity.

A recent rise in unemployment has made it more difficult for people to address their debt management problems, it has been claimed.

Figures from the Consumer Credit Counselling Service (CCCS) found people have to spend more than they earn each month, reducing the amount they have to repay debts.

It suggests that the average amount a couple can use to repay their debts has fallen from £197 to £114, which is attributed to the rising rate of unemployment.

CCCS chairman Malcolm Hurston said: "We already have evidence that this traditionally lagging indicator of financial wellbeing is making it increasingly difficult for our clients to repay their debts.

"We would expect this situation to get worse, certainly for the rest of this year."

The latest figures show the employment rate in the UK now stands at 72.2 per cent in the three months leading up to June, marking a 0.9 per cent fall compared to the previous quarter.

During this period, 28.93 million people were in employment, down 573,000 on the second quarter of last year.

Despite an increase in the level of gross mortgage lending, the results still remain subdued, it has been said.

The Council of Mortgage Lenders (CML) revealed a 26 per cent rise in the rate of mortgage lending between June and July.

However, this figure still remains £11 billion lower than the July average seen over the last seven years, regardless of the typical seasonal rise experienced over summer months.

"We anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge," noted CML economist Paul Samter.

He said that the market pickup is likely to be limited as there are "so many obstacles in place" in the current economic climate.

The CML revealed earlier this month that there had been 11,400 repossessions in the second quarter of the year, equating to a ten per cent decrease on the previous quarter.

Low interest rates are believed to be part of the reason behind the fall in possession cases.

Many mortgage borrowers are not in the position to move into a new property, it has been said.

Of the estimated ten million mortgages holders in the UK, Ray Boulger, senior technical manager at John Charcol, believes 3.5 million of them are unable to move house.

"There are some people who are going to be denied the opportunity to move for quite some time unless perhaps they are prepared to go and rent," he suggested.

Most people are unable to get mortgages for more than 90 per cent loan-to-value, Mr Boulger said, which would require them to put at least a 15 per cent equity deposit down on a new home.

According to a press release published by the CML on August 11th, there are further signs of stabilisation in the mortgage market, but transactions are still weak on a historic basis.

There were 45,000 house purchase loans in June, worth £5.9 billion, up 23 per cent from 36,500 loans in May.

However, this is less than half the average number of loans in June over the last seven years.

It is important for students to take their debts seriously, it has been emphasised.

Director of Credit Action Chris Tapp said the government often portrays the message that a student loan is not really a problem for graduates.

"People don’t understand the difference between a student loan and things like overdrafts, credit cards and those kinds of debts," he suggested.

Mr Tapp believes 18 year-olds should become more independent when it comes to their finances and should avoid debt management issues wherever possible.

Students are often given a loan without it being fully explained, he claimed, which is another area of improvement he believes should be developed.

A recent study from Push.co.uk found that students who started at university last year can expect to owe nearly £21,200 by the time they leave and new students should expect at least £2,000 more than this figure.

The national average projected debt on graduation stands at £15,812 but, at six universities, the figure has already broken the £25,000 mark.

There are fewer concerns over the state of the country’s rental property market, it has been said.

The situation was not as pessimistic in the second quarter of the year, noted Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors (Rics), which could suggest the market is starting to bottom out.

He continued: "[The] key to the extent and duration of the current rental downturn into 2010 will be the labour market and how pronounced job shedding becomes."

This news follows the latest repossession statistics from the Council of Mortgage Lenders, which showed there were 11,400 repossessions in the second quarter of the year.

The findings marked a ten per cent decrease on the previous quarter, but a 14 per cent increase when compared to the same period of last year.

Furthermore, there were 205,600 mortgages in arrears of 2.5 per cent or more and the level of arrears for three months or more increased.

The downward trend was partly attributed to low interest rates and a commitment from lenders to help people resolve their problems before they had to take action.