Almost a third of Brits (29 per cent) believe that the concept of a ‘rainy day fund’ is outdated, preferring to save for specific things they can look forward to, according to a recent poll.
The survey of 2,000 adults revealed that 36 per cent adopt a “you can’t take it with you” mentality, choosing to spend their money while they can instead of saving it for emergencies.
Furthermore, 34 per cent have a plan in place on how to use their savings on a significant purchase, with 67 per cent finding it rewarding to spend what they’ve saved.
While 42 per cent feel they work hard for their money and enjoy putting it towards something they really want, financial advisor and content creator Mr MoneyJar refers to this as ‘saving for a sunny day’.
One in 10 are now planning to put their cash towards a memorable experience like a festival, concert or spa day.
Sean Morley, head of savings at Post Office which commissioned the research, commented: “Attitudes to savings are changing, with more people placing emphasis on saving for the good times rather than for a ‘rainy day’.”
“Our findings show that there’s a growing demand to cater for different types of savers – with some wanting to achieve lifetime milestones, and other savings reserved for enjoyment.”
“We recognise that people prefer to save in different ways for different reasons, whether you want to open a savings account in branch or online, we’re committed to making saving accessible for everyone, no matter their goals.”
Interestingly, 30 per cent find saving money more thrilling than they did five years ago, with 40 per cent stating they ‘always or often’ manage to reach their goals.
Over half (57 per cent) deposit their money in a regular savings bank account, tet, one in five don’t feel confident they understand the difference between an ISA and a normal savings account., with Gen Z being the least certain about these savings options.
Interestingly though, the research found almost two thirds of Gen Z find excitement in saving money, compared to just 14 per cent of those 65 and over.
Millennial savers are the most likely to be working towards a house deposit, although this is still low at 22 per cent, they are also likely saving for special occasions such as weddings and stag or hen dos (15 per cent).
Mr MoneyJar, who has partnered with Post Office, stated: “While saving is essential for financial security, we all work incredibly hard for our money and so it’s entirely right that we get to enjoy the fruits of our labour, not just in the future, but in the present too, and spend it on experiences and things we enjoy.”
“Money is a tool, and spending money on things that will create positive memories and enjoyable experiences today is just as important as saving for tomorrow as memories and experiences improve your overall quality of life and encourage personal growth.”
“Different types of savings work for different types of people and it’s important to save for things in a balanced way.”
“So absolutely save for that sunny day or that special purchase you’ve always wanted, but make sure to have a separate pot of cash set aside for a rainy day as well.”