Brits now ‘saving for a sunny day’ as they pivot to spending cash while they can
NEARLY a third of Brits (29%) feel a “rainy day fund” is outdated and would rather save for specific things to look forward to.
A poll of 2,000 adults found 36% adopt a “you can’t take it with you” approach, preferring to spend their cash while they can, rather than putting it aside for emergencies.
And 34% have a plan in place for how to spend their savings on a big-ticket item, with 67% finding it rewarding to spend what they’ve saved.
While 42% feel they work hard for their money and enjoy putting it towards something they really want, financial advisor and content creator Mr MoneyJar references this to be “saving for a sunny day”.
More than one in 10 (11%) are 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, said: “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.”
The research also found 31% of adults recall being told by their parents how to save money but were given the freedom to decide when to save and spend.
Although 20% remember being encouraged to save as much as they could but weren’t advised on what they should spend the money on.
It emerged 30% find saving money more exciting than five years ago, with 40% claiming they “always or often” manage to hit their goals.
More than half (57%) put their money in a regular savings bank account, while 46% opt for ISAs, and 18% use schemes like Premium Bonds.
However, one in five don’t feel confident they know the difference between an ISA and a normal savings account, with Gen Z the least sure about these savings options and over 65s the most clued up.
The research, conducted via OnePoll, also found only 22% of Gen Z and 34% of Millennials are putting money aside for unforeseen costs.
But this figure rises to 44% of Gen X and 43% of Baby Boomers.
And while Millennial savers are the most likely to be working towards a house deposit (22%), they are also commonly saving up for special occasions – such as weddings and stag or hen dos (15%).
More than half (59%) of those aged 18 to 24 even find excitement in saving money, compared to just 14% of those 65 and over.
Mr MoneyJar, who has teamed up with Post Office, added: “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.”
How you can find the best savings rates
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
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