New Mobile App Tool Encourages Canadians To Make Small Sacrifices For Long-term Savings
ING DIRECT today announced a new addition to its existing mobile banking app for Apple and Android devices. Called Small Sacrifices, this new tool helps Canadians visualize how foregoing everyday indulgences and redirecting that money through small incremental deposits can lead to big savings over the long term. In a new poll commissioned by ING DIRECT, 52% of Canadians surveyed said that if they could better visualize what foregoing their daily, weekly and monthly spending on non-essential purchases would save them over the short and long term, they would change their spending habits.
"Mobile technology is changing how we live our lives by helping make everyday tasks easier and more convenient. Our new mobile app tool is now bringing that simplicity and convenience to everyday savings," said Peter Aceto, president and CEO, ING DIRECT. "Small Sacrifices is there to help Canadians make small choices throughout the day to put that extra few dollars aside instead of spending it on lunch or dinners or another cup of coffee. By cutting back on what seems like small everyday spending, Canadians can easily save thousands of dollars to meet their savings goals, like retirement, a new home or a vacation. This great new tool lets you see how those small purchases add up over the short- and long-term, and gives you an easy way - right in your pocket - to redirect that money to a real savings goal."
The Small Sacrifices tool gets you on your way to saving with just a few small steps. First, choose a small sacrifice, like passing on your daily coffee purchase. Then decide which goal to redirect the money to, like retirement or savings. Clients enter in how much money they spend on their average purchase, and Small Sacrifices creates a chart showing how much that weekly amount would grow to in the near term (five years) and long term (25 years). The next time a user is tempted to spend on their non-essential purchase, they can choose to instead redirect that money from their THRiVE Chequing™ Account to a savings or retirement account with one simple click.
Charaka Kithulegoda, ING DIRECT's Chief Information Officer says, "We use technology to make banking simpler, engaging and more relevant for all Canadians. Our goal is to give our clients the appropriate tools they need so they can bank whenever, wherever and however they want. This new addition to our mobile app is another example of how we're making saving easier and more accessible to Canadians."
ING DIRECT's survey also found that 35% of Canadians admitted that the amount of money they are able to save is lower now than it was two years ago, while 39% say their savings has remained about the same. Many respondents admit to spending as much as $35 a week on non-essential purchases, or "spending vices" like lunch out, coffee and lottery tickets, suggesting that, despite challenging economic times, there is some wiggle room in the average Canadians' budget to put a few extra bucks aside.
What non-essential purchases are Canadians making most?
37% of Canadians say their biggest spending vice is buying lunch or dinner, and they spend an average of $35 a week dining out
Lottery tickets are an admitted vice for 15% of Canadians who say they spend an average of $18 a week
Canadians who buy coffee regularly (13%) spend roughly $15 a week on their java purchases
Other common spending vices among Canadians include clothing and shoes (18%), alcohol (18%) and cigarettes (17%