BOSTON – (BUSINESS THREAD) – Many young adults today struggle to navigate their relationship with money, leaving them anxious, insecure, and defeated by previous failed attempts to budget and save. In fact, it is the result of Fidelity Investments® Money mentality 2022 The study reveals that more than half (59%) of young Americans cover up when thinking about checking their bank account balance.
The study examines the challenges, perceptions, and general mentality of younger adults (ages 18 to 44) with spending and saving, making it clear that while people want to save, they also don’t want to make drastic changes in their way of life. their daily life. More than three out of four (76%) believe that in order to save money they should reduce spending on things that make them happy. At the same time, 83% of Generation Z consider it important to spend money on experiences that make them happy, and 61% admit that FOMO (fear of getting lost) causes them to spend more than they initially intended.
To help address the many causes that make it so difficult to save Americans, Fidelity announces today the release of Fidelity BloomSM mobile application – a new behavioral science-based digital experience that rewards users for smart money movements and helps them save through conscious money habits. The free app1 offers people simple, achievable steps and fun challenges, which can help make saving easier by establishing habits that fit their lifestyle and existing values. Fidelity Bloom leans on the emotional side of money and introduces small changes that can add up, giving users the motivation to develop habits that can be maintained.
“Fidelity Bloom is the latest example of our commitment to investing in technology and tools that meet the changing needs of our customers, especially next-generation customers,” said David Dintenfass, Fidelity’s Chief Marketing Officer and Chief Executive Officer. “The new Fidelity Bloom app is based on the idea that positive reinforcement works best in building new habits, especially when there is anxiety. Based on behavioral science, Fidelity Bloom creates incentives for anyone to establish healthier financial habits. For people Ignoring your money because it is a source of negative emotions, Fidelity Bloom can help you find a positive way to get involved and take more control of your financial future.
BUDGET: Younger generations prefer not
The study reveals that almost two out of three adults (65%), aged between 18 and 44, think they should save more money, but thinking about finances is too stressful, so they simply avoid thinking about it altogether. . Worse, if emergency spending were to occur, almost half (49%) said they would not even be able to cover an unexpected $ 1,000 expense. And when it comes to making a budget, some prefer to do just about anything else.
HABITS: Small changes lead users to “think” to really “save”
When asked about receiving an increase in work, 54% of young Americans say they would spend their new extra income on savings, but more than half (59%) also admit to failing to try to save more. Fidelity Bloom allows users to move a small portion of the extra money to help them save smarter, motivating them through engaging challenges based on a mix of behavioral and AI-based knowledge, as well as monetary and other rewards.
“Behavioral science and economics are at the core of what makes Fidelity Bloom different,” said Etinosa Agbonlahor, director and behavioral research scientist at Fidelity. “By taking advantage of the psychology of human behavior and introducing small changes and rewards, we can help people become more aware of how they spend and save on the lifestyle they know and love, rather than asking them to change that lifestyle completely. We take the pressure off the way they see their relationship with money and give them the peace of mind and confidence they need to feel in control of their money decisions. ”
REWARDS: Everyone wants them
Fidelity Bloom brings together a unique combination of rewards in one place and makes rewards easy to get. Key features of the app are designed to reinforce positive behaviors right away with automatic rewards. As an added bonus to start with, for a limited time, new customers who open accounts in the Fidelity Bloom app and fund it with $ 25 will receive $ 50 in their Fidelity Bloom Save account.2with unique opportunities to earn more:
- Fidelity Bloom’s expense and savings accounts: Fidelity Bloom automatically separates spending and savings to help reduce the temptation to spend money on savings. Both are brokerage accounts and can be easily opened from the app.
Automatically save and earn rewards: saving is simple and automatic.
- Annual savings match—Customers receive an annual match of 5% of the first $ 300 in their Fidelity Bloom Save account, and for a limited time, new customers will receive a 10% match3 until the end of 2022.
- Earn 10 cents from Fidelity with every purchase—Fidelity will automatically deposit 10 cents into the Fidelity Bloom Save account each time customers use their Fidelity Bloom debit card.
- Receive up to 25%4 cash refund—Deposited to the Fidelity Bloom Save account when customers shop through the app with more than 1,100 participating retailers.
- Round up shopping—Customers can automatically round5 you buy at the nearest dollar and the difference is transferred to your Fidelity Bloom spending savings to your Fidelity Bloom Save account.
Learn more about how Fidelity is helping the next generation of educated customers, products and services, and opportunities to join money conversations on TikTok, Instagram, Reddit, and other channels.
On the study of the monetary mentality of Fidelity 2022
The 2022 Money Mindset Study presents the results of an online sample of 2,010 adults 18 years of age or older with a current or savings account, representing 98% of American adults, focusing on 1,008 respondents aged 18 to 44. The interview for this CARAVAN bus survey was conducted from April 15 to 20, 2022 by ENGINE INSIGHTS, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all respondents who meet the same criteria as those surveyed for this study.
About Fidelity Investments
Fidelity’s mission is to inspire better futures and deliver better results for the customers and businesses we serve. With $ 10.5 trillion in managed assets, including $ 4.0 trillion discretionary assets as of April 30, 2022, we are focused on meeting the unique needs of a diverse set of customers. Fidelity, privately owned for over 75 years, employs more than 58,000 partners who focus on the long-term success of our clients. For more information on Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
The Fidelity Bloom app is designed to help you with your savings and spending behaviors through your savings and spending accounts, which are brokerage accounts covered by SIPC insurance. They are not bank accounts and therefore are not covered by FDIC insurance.
Fidelity Bloom application functionality is limited to your main position. Fidelity Bloom uses the main position of your brokerage accounts, which is used by default in a money market fund ** and, like a portfolio, keeps your money uninvested to process your expense and savings transactions. You can select your primary position during account opening. Visit Fidelity.com to access your account’s trading and investing features.
** You could lose money by investing in a money market fund. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Before investing, always read the brochure of a money market fund to know the specific policies of that fund.
The Fidelity Bloom debit card is issued by Leader Bank, NA, and the debit card program is operated by BNY Mellon Investment Servicing Trust Company. These entities are not affiliated with each other or with Fidelity, although Fidelity’s parent company has a minority stake in non-controlling interest in Leader Bank. Visa is a registered trademark of the Visa International Service Association, and is used by Leader Bank under a license from Visa USA Inc.
The images in the screenshots are for illustrative purposes only.
The trademarks and service marks appearing here are the property of their respective owners.
Fidelity Brokerage Services LLC, NYSE Member, SIPC
900 Salem Street, Smithfield, RI 02917
Fidelity Distributors Company LLC,
500 Salem Street, Smithfield, RI 02917
National Financial Services LLC, NYSE Member, SIPC,
245 Summer Street, Boston, MA 02205
© 2022 FMR LLC. All rights reserved.
Follow us on Twitter @FidelityNews
Visit About Fidelity and our online newsroom
Subscribe to email alerts to receive news from Fidelity
1 The Fidelity Bloom app does not charge subscription fees. Fees associated with your account positions or transactions in your account apply.
2 Fidelity reserves the right to change the terms and conditions or terminate the offer at any time. Other terms and conditions and eligibility criteria apply. See the terms and conditions of Fidelity Bloom’s offer at https://www.fidelity.com/mobile/bloom.
310% is an introductory time-limited fee until 12/31/22. It is reduced to 5% of the game every year on 01/01/23.
4 Refund rates will vary by seller. Review the merchant’s conditions before making the transaction.
5 Fidelity Bloom users have a summary feature by default. Users can disable this feature at any time via Fidelity BloomSM application preferences center.