This is a sponsored post.
Thinking about saving money can be difficult. However, if you look around your house, most of us have been saving for years. I have my favorite stuffed animals from childhood and scrapbooks jammed full of ticket stubs and photos. Maybe you have your Halloween costume from elementary school or art projects from middle school. We hang onto these things because they have meaning. And now Capital One wants to turn your stuff-saving habits into money-saving habits.
Capital One is honoring the need to save—and our innate emotional drive to do so—by dedicating an entire day to it: National Savings Day, today, October 12th.
THE BANKING REIMAGINED SAVINGS STUDY
This summer, Capital One teamed up with Financial Psychologist Dr. Brad Klontz of Creighton University to test whether positive memories tied to nostalgic items, thus powerful and vivid, could be harnessed to improve financial decision-making or—more specifically—savings behavior. The Banking Reimagined Savings Study was conducted over two phases and three weeks. Participants were randomly assigned to one of two groups—the control group or the sentimental item group—and compared the results of the two groups.
The sentimental item group increased their savings three times (67%) more than the control group (only 22%) between the initial phase and second phase held three weeks later.
If maintained over the course of the year, this change could represent $10,020 in annual savings on average, compared to $5,838 in annual savings on average prior to the study.
The sentimental item group showed statistically significant increases in their financial savings behaviors from pre-experiment to post-experiment: readiness to save, confidence toward saving and financial health.
The study was conducted across five cities, including Seattle, and in each city the sentimental item group reported increased savings rates that were substantially higher than the control group. At follow-up, the Seattle group reported, on average, a 47% increase in their rate of savings from pre-experiment levels.
Capital One and Dr. Klontz have some tips for people to try at home to increase their savings:
1. Find a sentimental item that ties to your saving needs
Think of an item you have kept for positive sentimental reasons and ask yourself what kind of feelings and values are associated with that item. Is it something a grandparent or parent gave you and thus tied to the importance of a loving and supportive family? Use the power of nostalgia tied to your item and the identified feelings and values associated to determine how to live your values today and improve your financial savings behavior.
2. When you’re motivated to take action: automate it!
For example, set up a monthly contribution from your checking account to a savings account, like Capital One’s 360 Money Market, a high-interest rate account. It elevates banking as a flexible, fee-free online, mobile and in-person support savings account that offers a rewarding high-interest rate and access to tools needed for long-haul savings growth.
3. Consider creating some visual motivators to improve your relationship with money.
Don’t just have a “savings account.” Name it. Have a “2018 European Family Vacation Account.”
4. Explore the innovative tools and educational services available to solve money problems and meet your financial goals
Capital One designed the Capital One Café experience to do just that. Soon to be at the two new Capital One Cafés in Seattle is Capital One’s free Money Coaching and free Money Workshops. Additionally, the Cafe spaces offer Interactive Screens where you can challenge your financial knowledge and Demo Bars where you can learn about new digital tools.
In addition to the study announcement, Capital One launched #ShareMySave on Monday.
Capital One’s #ShareMySave celebratory contest calls on you to share images of your most treasured keepsake and tell why that item is so special and meaningful to you on social media using #ShareMySave and #Contest for a chance to win prizes up to $10,000.
- Share an image of a treasured keepsake and why that item you’ve saved over the years is so special to you on Twitter and Instagram using #ShareMySave and #Contest
- Winners are eligible for a weekly prize of $500 and a grand prize of $10,000.
- To learn more about the contest, visit https://www.capitalone.com/sharemysave
- Official Rules can be found here: https://capitalonesharemysave.com/en-us/rules
About Capital One:
Capital One is redesigning the banking experience in unique, innovative ways that help people feel confident with their relationship with money. They are helping people align their personal goals with their savings goals in simple, straightforward ways that empower good savings habits and offer a rewarding return on their money. The company is opening two new Capital One Cafes in the Seattle area in the coming months; one in South Lake Union and the other in Bellevue.