Nearly a third of Brits (29%) believe that the concept of a ‘rainy day fund’ is outdated, preferring to save for specific things they can look forward to.
A survey of 2,000 adults revealed that 36% adopt a « you can’t take it with you » mentality, choosing to spend their money while they can instead of saving it for emergencies.
Over a third have a plan in place to spend their savings on a big-ticket item, with 67% finding it more rewarding to spend what they’ve saved.
Additionally, 42% 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’.
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, » he adds.
« 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 study also discovered that 31% of adults remember their parents teaching them how to save money, but they were given the freedom to decide when to save and spend.
Despite this, 20% recall being urged to save as much as possible, but received no advice on what to spend their savings on.
Interestingly, 30% find the act of saving money more thrilling than it was five years ago, with 40% stating they ‘always or often’ manage to reach their financial goals.
Over half (57%) deposit their money in a regular savings bank account, while 46% choose ISAs, and 18% utilise schemes like Premium Bonds.
Yet, one in five lack confidence in understanding the difference between an ISA and a standard savings account, with Gen Z being the least knowledgeable about these savings options and those over 65 being the most informed.
The research, carried out via OnePoll, revealed that only 22% of Gen Z and 34% of Millennials are setting money aside for unexpected expenses. However, this percentage increases to 44% for Gen X and 43% for Baby Boomers.
Millennial savers are most likely to be working towards a house deposit (22%), they are also frequently saving for special events such as weddings and stag or hen parties (15%).
More than half (59%) of those aged 18 to 24 even find excitement in saving money, compared to a mere 14% of those aged 65 and over.
Mr MoneyJar, in collaboration with the 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, » he adds, « 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. »
