Saving money for the future is one of those things that we all know that we should be doing, but it can be really hard without the right strategy. Wouldn’t it be nice if we were somehow able to save money just as easily as we saved a box of old love letters from high school, or toys from childhood?
Below: Don’t miss your chance to win $10,000! Keep reading!
That’s what Capital One wanted to figure out, after the noticed that only 26% of Austin residents feel confident when thinking about their personal finances, and 57% of Austin residents are not able to invest more in their passions because of financial obstacles.* So they got with Financial Psychologist Dr. Brad Klontz of Creighton University to study whether people’s nostalgia could be harnessed to boost their savings accounts.
What they found was astonishing.
After a two-phase, three-week study in five cities — including Austin — participants who were exposed to immersive, emotion-driven financial presentations reported dramatic improvements in their savings. Compared to a control group that simply received a straightforward presentation on savings, the results were even more impressive.
The nostalgia 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 a whopping $10,020 in annual savings on average, compared to $5,838 before the study. Better yet, participants in the nostalgia group found themselves feeling more prepared to save, having more confidence in their savings, and expressing a greater sense of overall financial health. At follow-up, the Austin group reported, on average, a 40% increase in their rate of savings from pre-experiment levels.
The key to this exercise was that saving money became closely identified with family, values, and goals for the future. In other words, financial planning isn’t entirely analytical — sometimes, it can be dominated by emotions — and nostalgia seems to be just the thing folks need to retain a financial advantage.
In an effort to get consumers involved with saving, Capital One is launching National Savings Day on October 12, with events across the country, and even a #ShareMySave contest. Oh, and in Austin they’re also tossing in free pastries at all of their branches around town from 11:30 a.m. – 1:30 p.m. Nice!
To participate in the #ShareMySave contest, take a photo of a treasured keepsake and post it to Twitter or Instagram with a description of why that item is so special, then add #ShareMySave and #Contest to the end of your post. Do that and you’ll be entered for the chance to win weekly prizes of $500, and the grand prize of $10,000. For more, check out the contest website.
That’s not all they’re doing. In order to help Austinites with saving, Capital One is working to redesign the banking experience in unique, innovative ways that help people feel confident in their relationship with money. They’re helping people align their personal goals with their financial goals in simple, straightforward ways that more easily and naturally fit into people’s lives. That’s something no other bank is doing, y’all.
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You can see that commitment to innovation in their two new Capital One cafés opening in Austin soon, where customers can come in for a cup of coffee along with assistance in using Capital One products, along with free money coaching and free money workshops.
They’re 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 also 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. How’s that for awesome?
So if you’re serious about starting to save for something to help create new memories, whether it’s a vacation or a new home, mark your calendars for National Savings Day on October 12, hop on Instagram and Twitter with your photos and hashtags, and go check out what Capital One can do to help turn your goals into a reality. You just might win $10,000 in the process!
**According to a 2017 local market survey fielded by Toluna on behalf of Capital One