Younger workers are changing the way they think about saving.
New research from LHV Bank suggests that many people under 45 no longer identify with the traditional idea of putting money aside for a "rainy day".
Instead, they're much more likely to save with a specific goal in mind, whether that's a house deposit, a wedding, a holiday or starting a business.
At first glance, that sounds like positive news. Setting financial goals is often one of the best ways to stay motivated and build healthy saving habits.
But there's a catch.
When every pound is earmarked for a future goal, employees can be left exposed when life doesn't go to plan.
Goal-based saving is motivating but emergencies don't disappear
Having a clear savings target makes it easier to stay focused.
It's far easier to save for a dream holiday or a first home than for an unknown future emergency.
But unexpected expenses rarely arrive at a convenient time.
A broken boiler, emergency car repairs, a large vet bill or an unexpected household expense can quickly derail months of careful saving.
Without an emergency fund, employees may have little choice but to rely on overdrafts, credit cards or Buy Now Pay Later to bridge the gap.
And financial shocks don't just affect people's bank balances.
They can increase stress, reduce productivity and leave employees worrying about money while they're at work.
Financial resilience matters as much as financial goals
Saving for the future and preparing for unexpected costs shouldn't be seen as competing priorities.
Financial wellbeing is strongest when employees have both.
Even a relatively small emergency fund can prevent people from undoing months or years of progress towards longer-term goals.
Having accessible savings also reduces the likelihood of employees turning to expensive forms of borrowing when something unexpected happens.
For employers investing in financial wellbeing, helping staff build resilience can be just as valuable as encouraging them to save for major life events.
Employers can help employees build better saving habits
Workplace financial education often focuses on pensions and long-term planning, but day-to-day financial resilience deserves just as much attention.
Employers can support staff by encouraging regular saving, explaining the importance of emergency funds and helping employees understand how to make their savings work harder.
Many people check their account balances frequently but pay little attention to the interest rate they're earning, meaning their savings may not be growing as quickly as they could.
Simple guidance on reviewing savings accounts, understanding interest rates and building an emergency buffer can make a meaningful difference over time.
A balanced approach is the healthiest approach
Goal-based saving isn't replacing good financial habits.
It's changing the way people think about them.
For employers, that's an opportunity.
Supporting employees to save for the things that matter while also helping them build a financial safety net can improve financial resilience, reduce money-related stress and contribute to a healthier, more productive workforce.
Ultimately, financial wellbeing isn't just about achieving the next goal.
It's about making sure one unexpected bill doesn't stop employees reaching it.
Written by Caroline Chell
Head of Communications
