Page 8 - Savings Psyche
P. 8

Figure 2. Biggest motivations for saving money

                          A holiday                                                                55%

                                        Retirement                                            47%
       Covering ‘short-term’ emergencies
 (for example, replacing a broken boiler)                                                41%
Making home improvements/decoration

Buying a vehicle (for example, a car/motorbike)                                 31%

Getting on the property ladder/moving house                                23%

                          Paying for my children’s education          18%

Getting my children on the property ladder in the future              17%

Leaving a bequest for my children/family                              16%

                          Backpacking/travelling the world       13%

                          Paying for a wedding                   13%

                          Going to a music festival/gig/concert  13%

                          Time o to have children                10%

                          Paying for my education                10%

                                                Other 3%

Nothing/I’m not looking to save for the future 5%

With savings methods tallying with savings purpose, on           an obvious reward for doing so in the short term. Lower
the face of it things look good. And from a behavioural          levels of motivation to save tend to arise when the payoff
economics perspective, it is no surprise to see holidays as      is less certain and a long time into the future, primarily
the most popular savings purpose, and longer-term savings        due to a phenomenon known as ‘hyperbolic discounting’,
priorities further down the list. Firstly, people are most       which leads people to undervalue rewards that occur in the
prepared to forego current expenditure when they can see         long term.

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