One in three Brits feel that the traditional concept of a ‘rainy day fund’ is becoming outdated, with a preference emerging for saving towards specific enjoyable experiences instead of just emergencies. According to a survey of 2,000 adults, 34 percent now have a clear plan on how they intend to utilise their savings for significant purchases, embracing a mentality of “you can’t take it with you”. A substantial 42 percent of respondents feel that they work hard for their money and take pleasure in spending it on things they truly desire. Additionally, 67 percent find it gratifying to spend the money they have saved, with 11 percent already planning to use their savings for memorable experiences like festivals, concerts, or spa days.
Sean Morley, the head of savings at the Post Office, which commissioned the study, remarked on this shifting trend, stating, “Attitudes towards savings are evolving, with a growing number of individuals focusing on saving for moments of joy rather than just for a ‘rainy day’.” The survey also revealed that more than half (57 percent) of respondents deposit their savings in regular bank accounts, while 46 percent opt for ISAs and 18 percent utilise schemes like Premium Bonds. However, a notable one in five respondents lack confidence in differentiating between an ISA and a standard savings account, with younger adults in Generation Z displaying the least certainty on this matter, while those over 65 show the most understanding.
Interestingly, 30 percent of respondents find saving money more thrilling now than they did five years ago, with 40 percent claiming they frequently achieve their financial goals. Millennials, in particular, are saving for various purposes, including house deposits (22 percent) and special events like weddings and stag or hen parties (15 percent). Notably, more than half (59 percent) of those aged 18 to 24 derive joy from saving money, in contrast to just 14 percent of those aged 65 and above.
Mr. MoneyJar, in collaboration with the Post Office, emphasised the importance of enjoying the fruits of one’s labour by spending money on experiences and items that bring joy in the present moment, alongside saving for the future to ensure financial security. He highlighted the significance of balancing different types of savings and recommended setting aside separate funds for both enjoyable purchases and unforeseen emergencies.
In conclusion, the study sheds light on the changing attitudes towards savings in the UK, with a growing number of individuals prioritising saving for experiences and specific purchases that bring happiness and fulfilment. This shift reflects a desire for a more balanced approach to financial planning, where both present enjoyment and future security are given due consideration.