A survey of 2,000 adults had revealed almost a third of Brits (29%) believe the concept of a ‘rainy day fund’ is outdated, preferring to save for specific things they can look forward to.
Now, 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.
And it seems quite a few are serious about splurging as, 34% have a plan on how to use their savings on a significant purchase, with 67% finding it rewarding to spend what they’ve saved.
Financial advisor and content creator Mr MoneyJar has coined this as ‘saving for a sunny day’, as research shows 42% believe they’ve worked hard for their money and want to spend it on something special.
Sean Morley, head of savings at Post Office which commissioned the study, 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.”
The research, carried out via OnePoll, discovered that only 22% of Gen Z and 34% of Millennials are setting money aside for unexpected expenses.
Additionally, while Millennial savers are most likely to be saving for a house deposit (22%), they are also frequently saving for special events such as weddings and stag or hen parties (15%).
Over half (57%) deposit their money in a regular savings bank account, while 46% prefer ISAs, and 18% utilise schemes like Premium Bonds.
A large 31% remember their parents teaching them about saving money, but they were allowed to choose when to save and spend. Yet, 20% recall being urged to save as much as possible, but received no guidance on what to spend their savings on.
A surprising 59% of those aged 18 to 24 even find joy in saving money, compared to a mere 14% of those aged 65 and over.
Mr MoneyJar, in collaboration 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.”