Chip, the digital savings account, has launched the ‘OnlyFunds’ hotline, a free phone line inspired by the adult hotlines of the 80s and 90s, to help consumers say no to impulse buying and encourage saving this Black Friday and Cyber Monday.
With its ‘OnlyFunds’ initiative, Chip, which has saved its 400,000+ users over £670 million to date, aims to highlight that Black Friday spending, and in particular impulse purchases, could prove a real threat to people’s long-term saving goals.
This Black Friday and Cyber Monday, Brits are predicted to spend a total of £4.8 billion, which is an average of £275 per person, and goes up to £339 on average per person for Generation X.
According to Chip’s data team, who analysed the savings goals created by the app’s 400,000 users, the most popular items people are currently saving for are:
- PlayStation 5
- Apple Watch
However, should consumers reconsider their Black Friday spending and deposit that money into market-leading easy-access savings account instead, they could save thousands in a matter of years.
Chip’s data team has calculated that if people were to give up spending and impulse purchases on Black Friday, and put aside £275 – the average amount a person will spend this shopping weekend – into the market’s best easy-access savings account (currently Chip’s Allica account offering 0.70% interest), they’ll have saved;
- £1,119.38 in three years
- £1,404.14 in five years
- £3,133.12 in ten years.
For Gen X, who are predicted to spend £339 on average each, these prospective savings go up to £1,370.30, £2,069.92 and £3,862.28 in three, five and ten years, respectively.
Chip’s CEO and Founder, Simon Rabin, commented: “At Chip, we do believe savings should be about saying yes, not no. When it comes to shopping, we want to empower our users to buy that car, purchase that laptop they need, and save for the house of their dreams. Our goal is to take the hassle out of saving and make it as smooth as possible. Impulse spending can seem innocent enough, but it adds up and can derail your bigger goals.
“Impulse purchases feel so good because they provide you with instant gratification”, Simon continued, “but think about your future self. That’s why we’ve launched our ‘OnlyFunds’ initiative – a playful way of encouraging people to resist unnecessary impulse purchases and focus on their long-term savings goals. So this Black Friday, if you find yourself tempted by a flashy offer, call our hotline for some steamy savings encouragement.”
Chip’s Co-Founder and CMO, Alex Latham, added: “The last week of November is a peak time for impulse spending. It’s a tug of war between retailers who are desperately trying to entice consumers, who in turn often find themselves giving in to the FOMO of flashy discounts and limited-time offers. So, with our ‘OnlyFunds’ campaign, we wanted to cut through that noise with a more unconventional approach and hopefully help people reconsider impulse purchases. We want to enable our users to reach their big financial goals, and hope that our humorous take on the pleasures of not giving in to impulse buying can help them keep their eyes on the big prize.”