Challenger bank Tandem Bank has launched a “Savetember” campaign as it highlights the “national savings crisis” in an attempt to transform UK savings habits.
Reports state that savings in the UK are at an all-time low, while credit card spending continues to increase. In 2018, the Money Advice Service reported that 16 million people had less than £100 saved. The Office for National Statistics has also reported that a shocking 50% of 22 to 29-year-olds are living with no savings at all.
The month-long national campaign by Tandem is expected to repeat every September and aims to engage those struggling to save.
Research commissioned by Tandem indicates that men are more likely to feel confident about managing their money. Conversely, the research suggests women are more cautious. Women would rather save for specific short-term goals such as holidays whereas Men’s savings goals tend to be longer-term with general financial security and retirement at the forefront. Tandem’s data shows men are more likely to hold more in their total savings with 15% of men having saved between £50,000 – £200,000, compared to only 5% of women.
Ricky Knox, Tandem Bank CEO, explained that at Tandem they make every decision based on what their customers actually want from their bank.
“What we see time and time again are customers’ issues with saving. It’s time for banks to stop profiting from a generation of non-savers and transform a national habit,” said Knox.
The ban’s research shows that mobile bankers are the savviest in their attitude to money with 71% shopping around for the best deals and 66% making sacrifices to better control their financial future. 44% of mobile bankers move their money into savings around once a month.
Individuals under the age of 34, feel less in control of their financial destiny and tend to save in a low-reward, regular saver or current account. The Tandem Bank research also suggests that those living in London want and need the most assistance in how to save, reflecting the affordability challenges of life in the capital.
“The numbers speak for themselves: too many people rely on credit in emergencies rather than money that has been set aside,” said Knox. “It is too easy to bury our heads in the sand, hide our money worries or not act on them. Enough talking about money, let’s take action!”
Knox, added that everyone knows that they should be saving but until they experience the benefit for themselves it’s a difficult habit to start.
“We want our Tandem community, new and old, to come together throughout September to support each other in their individual savings journey, sharing in successes and supporting each other through the challenges. A savings habit can really change your life and positively influence others around you to do the same”