While 54% of Americans report that they feel happy when they save money, more than a quarter (28%) report that they always or very often spend their savings, according to a new survey released today by Capital One Bank. The Capital One 2015 “Challenge Your Savings” report reveals that more than a third (36%) of Americans say their income is not high enough to allow for much savings and on top of that, when they do save, the top reason is to pay off debts.
The survey of 2,000 Americans found that only 54% say they are satisfied with their current financial status, but that one in ten people will not save any money for the rest of 2015. Why not? Twenty-five percent of respondents say they struggle to keep up with their regular financial obligations (e.g., mortgage, car payment, etc.) and more than one in ten say they are living over their budget or spend too freely.
Alongside these points, there are many insights the report reveals that show the positive impacts of saving. For example:
More than half (53%) of respondents say that saving brings them peace of mind.
Nearly two thirds (60%) of respondents say they feel satisfied when they meet their savings goals.
Younger millennials say they feel successful (56%) and proud (52%) when they are able to meet their savings goals.
Saving isn’t just for the older generation – just as many younger millennials (56%) say they feel happy when they save compared to Gen X and Baby Boomers (57%).
· Almost a quarter of respondents (22%) say that saving relieves stress between them and their significant other.
Interestingly, when compared with family life, professional life, social life and personal health, financial health ranks as the aspect of life that Americans are least satisfied with.
“We want to encourage savings and empower consumers to see the value in establishing a savings plan and sticking to it,” said Celia Edwards Karam, managing vice president, Consumer Deposits, Capital One Bank. “Every dollar counts and by putting money aside on a regular basis, individuals and families can successfully achieve their financial goals – and feel excited about their growing bank account, not overwhelmed by the process in getting there.”
To help consumers get more out of their savings, Capital One Bank has partnered with acclaimed Financial Expert and Journalist Nicole Lapin to educate consumers on simple ways they can advance their financial goals, especially when it comes to saving.
“Saving is a critical step to achieving financial success, something I try to help people attain every day, in fun and easy ways,” said Lapin. “Financial well-being is never the same for any one person, but the way to get there follows a similar path: determine a set amount of money that you will save each month for a specific goal and stick to it. Setting up auto-deposits through an online savings account, like Capital One 360 Savings, is a great way to get started.”
Admittedly, Only 21% of survey respondents say that they “set it and forget it” with their savings by setting up automatic deposits. With a Capital One 360 Savings account, setting up automatic deposits is a simple process.
The ‘Challenge Your Savings’ survey also revealed that people feel such satisfaction from saving money for the future that they are willing to give up quite a bit for some extra cash in the bank:
More than a third of respondents (34%) say they are willing to give up air conditioning to increase their savings – although the humid, hot weather makes the South the least likely region to forgo central air (25%).
30% of respondents say they would give up their smartphone for the next six months if it meant an increase in their savings account.
In fact, when tempted with an extra $1,000 to their savings account, almost two-thirds of respondents say they would be willing to give up the internet for a month.
Even a quarter of people say they are willing to give up regular showers for an increase in savings!
Find out more about the tools you can use to make saving easy with a Capital One 360 Savings account, including enrolling in an Automatic Savings Plan, here: https://home.capitalone360.com/online-savings-account/tools. Consumers are also encouraged to visit the Capital One 360 Facebook page at www.Facebook.com/CapitalOne360 for more savings tips from Lapin.
2015 ‘Challenge Your Savings’ Survey Methodology
This survey was conducted online within the United States between May 29 and June 3, 2015, among 2,000 adults ages 18 and over by Capital One via Toluna’s Multimind omnibus product. Respondents for this survey were selected from among those who have agreed to participate in Toluna surveys. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the online population. Propensity score weighting was also used to adjust for respondents’ propensity to participate in online survey research. Because the sample is based on those who agreed to participate in Toluna surveys, no estimates of theoretical sampling error can be calculated.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $210.4 billion in deposits and $306.2 billion in total assets as of March 31, 2015. A Fortune 500 company with branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients.