The great savings decline
Finding ways to save has never been easier. From apps like Plum, which provides automatic weekly round-ups, to budgeting apps that help you spend less and save more, the creation of platforms to help us decide where we put our money has grown. However, factors like inflation and household debt continue to make saving challenging for many. UK-based research has found that more than 11 million working-age people don't have basic 'rainy day' savings of at least £1,000. In the US, the share of adults who say they can cover six months of expenses using their savings dropped to just 16.5% in July 2023, down from 22% a year prior.
This lack of financial stability affects people's overall view of the future. In a world with unprecedented challenges such as climate change and rising levels of political divisiveness, there's a need to shift how we define success and what stability looks and feels like. "They're telling us they can't buy into that American Dream the way that their parents and grandparents thought about it ‒ because it's not attainable," said John Gerzema, the CEO of Harris Poll, to USA Today. With this in mind, people are looking at new ways to redefine financial success beyond homeownership and other key markers that existed for previous generations - something brands can tap into. Investment app Chip's 'Real Assets' campaign focused on experiences and interaction, highlighting the opportunity to appeal to the experiential joy that can be afforded by financial security. Elsewhere, Plum's 'Naughty Rule' encourages responsible indulgence, highlighting the middle ground between sacrifice and treating yourself.
