From Boring Money Bulletin October 2017
Money Tribes: Tired Parents
This month we will be delving into the financial behaviours and habits of Tired Parents – those adults aged between 30 and 49 with younger children aged 10 or under. Many Tired Parents keep most of their money in cash savings and both convenience and access are key criteria for financial products. Quick access to their money is key but how do these pressures affect their longer-term outlook?
· Only 11% have a stocks and shares ISA
· Only 10% have a personal pension (SIPP)
· Only 30% say they have a workplace pension
· Over 1 in 3 don’t have any savings or investments whatsoever
Tired Parents are one of the least likely groups to be actively investing, with only 1 in 3 saying that they have any kind of a pension set up. Children obviously bring a whole new dynamic to the phrase ‘financial pressure’ and it’s easy for this group to only focus on the here and now. At the same time, many feel financially responsible if a little short on time, so is the answer a ‘quick-fix and forget solution’?
Parents do have a different response to brands than those with no kids. They are twice as likely to say they’d invest with Tesco, should this retail giant stick a toe into the world of investments. They are also more likely to say they would invest with MoneySavingExpert (33% to 24%). It's all about convenience and marrying investment to where they already hang out.
They are more likely to be influenced by social media than their childless peers.
When we test confidence levels and willingness to engage, they are broadly the same as those with no children - but they lack time. 26% say they struggle to find the time to manage their finances, compared to 15% of their childless peers. However, they are just as likely to say that they do always find the time, suggesting that they do prioritise their finances, despite being under time pressure.
Tired Parents are just as likely to have stocks and shares ISAs– but less likely to have cash savings. They've probably spent it all in John Lewis!
The important lack of time is also reflected in the marketing message that resonated most with this audience. 33% of Tired Parents like the sound of investing through a simple app, compared to only 23% of childless 30-49 year-olds. Time and convenience should be the message - not the end-product itself.
We’ll be looking into the propositions, messages and brands which achieve engagement with Tired Parents and explore what the investment industry should be doing in order to grab the attention of this particular tribe. To understand more about this segment, their barriers and how you might actually strike up a conversation, please contact Alex for further information. We are very good at adding our market knowledge to our consumer research and your data and working with our clients to deliver a specific, tested and targeted comms campaign, focussed on your tribe of choice.