The Hummingbird Blog

A Series of Insights Into Savings, Personal Finance and Behavioural Science

Part 6 - Fostering a Culture of Saving Money

This is a question for the ages. Indeed, fostering a culture of saving money is by no means easy. Still, there are various ways in which this can be achieved. Considering the fact that roughly 65% of adults aged 25-34 are highly concerned about not saving money, one can assume there is fertile soil for expanding a culture of saving.

Yet, the current tools and means available at the moment are simply not getting the job done. In addition to a shift in mindset, it is important to find ways in which people can begin building up their savings. However, this is easier said than done.

One of the most promising ways in which saving money can be possible is by using digital tools to help track spending and allocate funds more effectively. These tools can aid individuals in tracking the allocation of their expenses while also keeping a closer watch on their income.

In this regard, a recent survey indicated that approximately 50% of Europeans use mobile apps to spend or transfer money. This fact underscores the growing acceptance of digital apps for money management.

The flip side of this trend is the fact that 44% of those surveyed indicated that they spend more as a result of conducting more transactions. This points to the fact that having greater conveniences encourages greater spending.

As a result, a delicate balance needs to be maintained. On the one hand, greater ease and convenience make the overall user experience much better. On the other hand, this greater convenience also makes it easier to spend money.

Consequently, the Fintech industry is not only at the forefront of making payments easier for all people around the world, but it is also at the forefront of developing tools that can help individuals get a better sense of how to manage their money. This, by no means, is intended to force people to spend their money in a certain way. Rather, it is meant to nudge them in the direction of saving money. As we have pointed out, saving money is as crucial today as it has ever been.

The main takeaways

A lack of savings is not a new problem. It seems that practically every generation has been through this type of problem. Thus, we are looking at an old problem in a new lens. As such, this affords us an opportunity to find a new solution to this “old” problem.

There is no question that the decline of the savings rate is quickly becoming a structural problem, meaning that it is not going anywhere any time soon. As such, it’s important to find new and perhaps “unconventional” ways of saving money.

Given the fact that technology has made life much easier in many respects, it can also make saving money easier. Therefore, tools produced by firms in the Fintech field can help individuals find new ways of saving money, especially since traditional or “conventional” ways of saving money are clearly not working.

So, it’s important for people from all walks of life to learn more about how they can save money by using digital tools and apps. And while many of these tools are still in their infancy, there is no doubt that they are quickly gaining momentum. Since people are willing to embrace digital tools as a means of managing their finances, it shouldn’t be a stretch to think that the public will also embrace digital tools that will help them save money.

After all, doesn’t it seem like a great idea to save money, especially when the future is so unpredictable? These days, one can’t be too sure about what is waiting around the corner. This is why it’s best to address the issue of saving money sooner rather than later. Your future self will certainly be grateful for any efforts you can make today to save them trouble down the road. With the use of digital tools and apps, that road may very well get a bit easier to navigate.

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