What does an old baseball glove, an engagement ring, or a family photo have to do with saving money? A lot, according to a recent study. Or, at least, these nostalgic items could mean a lot more money in your bank account if you follow the expert advice offered by Capital One during the first-ever National Savings Day.
The day-long celebration, on October 12, is meant to highlight new and creative ways people can save money. Central to the celebration will be the study, conducted in conjunction with financial psychologist, Dr. Brad Klontz of Creighton University.
Piloted in five American cities, the study used two groups—a control group and a sentimental item group. In the Seattle-based financial experiment, the sentimental item group reported 47 percent more in savings during the duration of the study than that of the control group. If maintained over the course of the year, the findings notes, people using the nostalgia-based techniques could save thousands of dollars than their counterparts. Specifically, the sentimental item groups showed an increased readiness to save, confidence toward saving, and increased financial health after using the new nostalgia-based techniques.
How does it work? Well, first, it recognizes that managing money isn’t easy for everyone. It can often feel difficult to understand, vague and even amorphous. But by using the power of positive, emotionally charged moments, people can develop a deeper incentive for saving money, offering themselves more financial freedom and opportunities to plan for the future. Think of your savings account like a memory box, only it’s one you have yet to fill. Or try naming your savings account, something like “2018 European Family Vacation Account,” to help motivate good savings practices. By associating their most cherished memories with reasons to save, customers can become more confident in their financial habits, and they can buttress this confidence with on-site Capital One workshops and money coaching.
Capital One is also helping by offering products that empower good savings habits and offer a rewarding return on a customer’s money. Capital One’s 360 Money Market account 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. It offers the option to automate your contribution to the account, so you don’t even have to think about saving once you’ve made the decision.
Capital One believes the results of the study are cause for celebration, but this is a holiday designed not for you to spend your money, but for you to learn better how to save it to achieve future goals. To further promote the study’s groundbreaking results, Capital One is launching their new #ShareMySave contest on National Savings Day, which calls on you to share images of your most treasured keepsakes on Instagram or Twitter, sharing why that item is so special and meaningful to you. Entrants who use the hashtags #ShareMySave and #Contest are eligible to win weekly cash prizes of $500 or one of the $10,000 grand prizes. To be a part of the conversation on social media, people can also use the hashtag #NationalSavingsDay.
Capital One data further suggests that in Seattle four out of five people believe they would be happier if they felt more confident in their personal finances.* Knowledge is power, after all. And while an increase in earning isn’t always an option for everyone, an increased and stronger understanding of how to save money is an option for all. And to help educate and promote the various options open to Capital One customers, the financial company is introducing their new Café experience to the Seattle area later this year, one location will be located in Bellevue and the other in South Lake Union.
By using these initiatives and following the thoughtful prompts based on Capital One’s significant new financial study, customers may find themselves looking back on 2017’s National Savings Day as the catalyst for future cherished memories, recognizing that goals were achieved thanks to a shift in perspective.
*According to a 2017 local market survey fielded by Toluna on behalf of Capital One