According to a new survey sponsored by PenFed, the nation’s second largest federal credit union, savings-savvy consumers who use technology to support or enable financial services have a better financial outlook. On average, technology users have more financial security, have more in savings, use a budget more frequently, put money in savings more often, expect to save more in the future and save for retirement at a higher percentage rate.
McLaughlin & Associates conducted the survey from February 15 – February 21, 2018, on behalf of PenFed Credit Union. The survey was conducted online among a cross-section of 1,000 adults age 18 and over, and has an accuracy of +/- 3.1 percent at a 95 percent confidence interval. It found:
- Three quarters (76%) of respondents use either automatic savings, a banking app or both technologies. They are both used virtually equally (48% automatic savings and 50% banking app).
- Adults who have either automatic savings or a banking app are more optimistic about their financial outlook than those who do not use either technology (63% to 47%).
- Women are somewhat more likely to use the technologies than men (78% to 74%). Men are more likely to use automatic savings than women (51% to 45%), while women are more likely to use a banking app than men (57% to 42%).
- Adults with automatic savings on average have $3,000 more in savings compared to adults who only use banking apps and $4,000 more than adults who use neither technology.
- Four in five (80%) adults who have automatic savings are monthly savers, which is significantly higher than adults who use a banking app (52% monthly) and adults who do not use either technology (31%).
- Adults under 44 are more likely to use the technologies than older adults (86% to 67%).
- The majority of younger adults (54%) use automatic savings, compared to 42% of older adults. Likewise, younger adults are more likely to use a banking app than older adults (57% to 43%).
“Setting up an auto-transfer in your PenFed account is easy and fast,” said Derrick Harris, Vice President of Branch Operations for PenFed Credit Union. “It’s the best way to ensure you’re putting away money for short- and long-term savings. Just set it and forget it – then a few months down the road, you’ll notice your savings will have grown and you’ll feel more secure when an emergency pops up.”
PenFed, which has more than 1.6 million members, is participating in America Saves Week by working to educate consumers about the importance of saving. America Saves Week is coordinated by America Saves and the American Savings Education Council. Additionally, PenFed is participating in Military Saves Week by encouraging its members to save in its branches on military bases. Military Saves Week is coordinated by America Saves and the Consumer Federation of America in partnership with the Department of Defense. The Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.
Each day during America and Military Saves Week, a new theme is introduced to educate consumers. During the course of America and Military Saves Week, PenFed will continue to release survey findings and tips from PenFed financial experts related to savings.
Visit PenFed.org to learn more about how you can save with PenFed Credit Union. Click here to take the America Saves Week pledge. Click here to take the Military Saves Week pledge